PGA Tour and LIV Golf are planning to extend their merger deadline, according to a memo from Commissioner Jay Monahan. The original deadline was set for December 31, 2023, but negotiations will continue into next year due to the progress made so far. The goal for 2024 is to reach agreements with Strategic Sports Group (SSG), the Public Investment Fund (PIF), and DP World Tour, bringing them on board as minority co-investors in PGA Tour Enterprises.
The PGA Tour has been in final negotiations with Strategic Sports Group, a coalition of U.S. investors led by Fenway Sports Group. Meaningful progress has been made, and the requested due diligence information has been provided to SSG. These partnerships will allow for unification, innovation, and investment in the game for the benefit of players, fans, and sponsors.
A formal decision on the merger is expected to be made before the Masters tournament in April. This extension is the latest development in the ongoing saga between the PGA Tour and Saudi Public Investment Fund-backed LIV Golf. The proposed merger has divided players and could have significant implications for professional golf if completed.
The agreement between PGA Tour and LIV Golf was announced in June, combining their commercial operations. Under the structure of the agreement, PGA Tour would hold a controlling interest in the new entity’s board of directors, with PIF as a minority investor. PIF is prepared to invest $1 billion into the new commercial business, which also includes the DP World Tour.
The proposed merger will likely face antitrust scrutiny from the U.S. Federal Trade Commission and Justice Department. Prior to the agreement, PGA Tour and LIV Golf were engaged in litigation as LIV Golf attracted Tour players with lucrative contracts. Recently, LIV Golf signed world No. 3 player Jon Rahm to a reported $300 million contract.
The PGA Tour plans to offer direct equity ownership in the new company to players once a deal with investors is reached. Commissioner Jay Monahan has been meeting with Yasir Al-Rumayyan, chairman of LIV Golf and PIF governor, to continue discussions. The goal is to have athletes as owners in their sport and to elevate the PGA Tour with the help of experienced co-investors.
