The PGA Tour is in talks with a number of possible investors, according to Commissioner Jay Monahan of the tour, as the deadline for finalizing a deal with Saudi Arabia’s Public Investment Fund draws near.
Additionally, he said that another investor could still join the PIF on the tour.
At the Deal Book summit hosted by The New York Times, Monahan stated, “We’re having conversations with multiple parties.” He stated that the December 31 deadline specified in the initial framework agreement remains a “firm target” and that he will meet to have “advance conversations” with PIF Governor Yasir bin Othman Al-Rumayyan. Mohammed bin Salman, the crown prince of Saudi Arabia, is in charge of the fund.
Monahan provided some explanation on how the earlier this year framework deal to merge the PGA Tour with PIF-owned LIV Golf came to be.
According to Monahan, “as June 5th drew nearer, it became abundantly evident that the $7 billion sovereign wealth fund was posing an existential threat to the PGA Tour and was determined to control the future of our sport.”
Since last year, LIV and the PGA Tour have been embroiled in a legal dispute over antitrust. With deals worth hundreds of millions of dollars, the Public Investment Fund had been enticing Phil Mickelson and other top players on the PGA Tour to LIV.
The “extensive and divisive litigation” was resolved, according to Monahan, “by striking a deal that allowed the PGA Tour to remain and retain control.” He continued, saying that the agreement saw the PGA Tour maintain control in the face of an existential threat. “Although it was a difficult choice, I am sure that it was the best one for our players and our supporters.”
Along with talking about his personal struggles, Monahan addressed the criticism he was receiving for the deal with the Saudis, which came from politicians, commentators, and celebrities like Rory McIlroy and Tiger Woods.
Shortly after the deal was announced, the commissioner took a medical leave of absence.
On June 11, he claimed to have taken a long walk, prayed, and returned home to tell his wife that he needed help because he was in a difficult situation.
He stated on Wednesday that the conflict had an impact on “me, my mental and my physical health.” “You’re not eating healthfully. You have such a strong passion for the game, the PGA Tour, our players, and our history that all you can think about is work. It had an effect on me.
Leading American lawmakers questioned Saudi Arabia’s involvement in the deal, speculating that the merger was an attempt by the Saudi government to divert attention from its human rights record and acquire excessive power through its ownership of sports.
Numerous potential investors expressed interest in the deal as well, including Endeavor Group Holdings, the majority owner of TKO, and Fenway Sports Group, the owner of the Boston Red Sox. Although the Fenway bid appears to still be on the table after the PGA Tour and Endeavor confirmed their talks earlier this month, the PGA Tour rejected the Endeavor offer last month. It’s unclear if Fenway would support the Saudis’ bid or overshadow it.
The tour informed players earlier this month that it will provide them with equity ownership in the merged company in an attempt to win their support.
“The PGA Tour is going to be in a position where the athletes are owners in their sport,” Monahan stated, following the merger’s completion. The PGA Tour will become even more competitive and gain market share from other sports with the support of the PIF and “probably another co-investor with significant experience in business and sports.”
The transition from the model of independent contractors to owners is crucial for our players, according to Monahan.
