The PGA Tour and Saudi-backed LIV Golf have been in active talks, according to a person familiar with the matter, a year after the two entities surprised the world and announced on CNBC that they had agreed in principle to join forces.
Talks between the Tour and the Saudi Public Investment Fund, which backs LIV Golf, are “extremely active,” the person said.
The newly formed seven-person PGA Tour transactions committee, which includes professional golfers Rory McIlroy and Tiger Woods, as well as Fenway Sports Group founder John Henry, and representatives from the PIF have been meeting in person and remotely every Monday, Wednesday and Friday for the past. month, the person added.
The group will meet in person in New York on Friday, except for McIlroy, who will join remotely.
A PGA Tour representative declined to comment. Representatives from LIV and PIF did not respond.
When PGA Commissioner Jay Monahan and Saudi PIF Governor Yasir Al-Rumayyan announced the proposed combination on CNBC last June, it surprised many after a bitter legal dispute between the two competing leagues.
The proposed deal's deadline, originally set for Dec. 31, 2023, was extended. The tour has since also agreed to allow U.S. investors into the mix.
The deal has not been closed. But the sides have exchanged term sheets and have mostly agreed on the financial part of the deal, the person familiar said, with the Saudis and the consortium of investors agreeing to put up another $1.5 billion each for the tour. The deal will reportedly have a similar structure to its agreement with Strategic Sports Group, a consortium of investors. The parties are now focusing on product decisions involving players, schedules, tournaments and media rights, the person added.
The discussions do not mean a deal is imminent, but the pace of the process has accelerated as Al-Rumayyan sometimes attends weekly meetings, the person said.
The New York Times DealBook previously reported on the discussions.
Throughout the year, the tour has attempted to become more attractive to players and prevent defectors from rivaling LIV by rewarding them for their loyalty to the organization. The tour increased tournament prize money and created PGA Tour Enterprises, a new business venture that will distribute more than $1.5 billion in capital to players.
“By making PGA TOUR members owners of their league, we strengthen our players' collective investment in the success of the PGA TOUR,” Monahan said at the time.
In late January, the tour announced new capital from a group of high-profile investors led by Fenway Sports Group. The SSG is pumping $1.5 billion into the tour and has committed another $1.5 billion if a deal with the Saudis is completed.
In May, the tour's Jimmy Dunne, considered one of the architects of the deal, abruptly resigned from his position, expressing frustration at the lack of progress.
One source said that when Dunne was not included on the business council (what is a business council?), he became frustrated and felt he was no longer needed.
Before the leagues said they would join forces last June, PIF had been luring PGA Tour golfers, including star Phil Mickelson, to LIV with deals worth hundreds of millions of dollars.
Since then, the lengthy and tumultuous settlement process has sparked backlash from American players, consumers and lawmakers, who have also investigated and questioned PGA Tour executives. If the merger is completed, it could dramatically change the landscape of professional golf.
After LIV lured Tour players with big-money deals, Monahan said the tour looked at golf “on a global level” and determined the merger would benefit the sport.
Many critics have accused LIV, which launched in 2022, of “sportswashing” or spreading influence through sports in an effort to divert attention from Saudi human rights violations.
After clear lines were drawn, players expressed frustration with the proposed deal, prompting the tour to increase financial incentives for golfers.
