The PGA Tour aims to have a single, unified top-level professional golf circuit.
However, Saudi Arabia`s Public Investment Fund (PIF) prefers to maintain two separate major circuits. This difference in vision is causing renewed difficulties in their discussions to reunite professional golf.
Sources have confirmed that the PGA Tour declined PIF`s latest proposal to invest $1.5 billion into PGA Tour Enterprises, the Tour`s for-profit branch. This offer was conditional on keeping the LIV Golf League operational as a distinct entity.
The PIF, which has been the financial backer of LIV Golf since its inception in 2022, also wants its governor, Yasir Al-Rumayyan, to be the co-chairman of the PGA Tour Enterprises board. Currently, Joe Gorder, former CEO of Valero Energy, chairs the board, with Tiger Woods as vice chairman.
Reports indicate that the PGA Tour responded to PIF`s offer in a letter earlier this week.
Previously, sources informed ESPN that the PGA Tour is not willing to accept a scenario where LIV Golf continues in its current structure. The PGA Tour`s preference is for the world`s best golfers to compete on a single tour.
Sources suggest that PIF is firm in its stance during negotiations and wants team golf to be a part of professional golf`s future if an agreement is reached. The PGA Tour has explored options to incorporate some form of LIV Golf into future schedules, possibly including team events at international locations during the fall.
PGA Tour commissioner Jay Monahan stated that while some obstacles have been overcome, others remain. He emphasized the shared urgency to reach a resolution, while also ensuring any agreement doesn`t weaken the PGA Tour`s position or its current positive momentum with fans and partners.
These recent communications follow a four-hour meeting involving Al-Rumayyan, Monahan, Woods, and PGA Tour player director Adam Scott at the White House on February 20th. Prior to this, President Donald Trump met with Monahan and Scott in Washington on February 4th.
Speaking to reporters, Trump expressed his hope for a merger between the tours, believing it would be beneficial. He mentioned his involvement and his desire to see the PGA Tour and LIV Tour unite.
Reports suggest PIF will have invested $5 billion in LIV Golf by the end of the year. LIV Golf, known for its 54-hole tournaments, no cuts, shotgun starts, and team format, has struggled to gain significant traction in the U.S. in terms of corporate sponsorships and television viewership.
Brooks Koepka, a LIV Golf League captain, admitted before a recent tournament that he had expected LIV Golf to have progressed further by its fourth season.
Koepka was among several prominent PGA Tour players who joined LIV Golf, attracted by guaranteed contracts exceeding $100 million. Other notable players who moved to LIV Golf and were subsequently suspended by the PGA Tour include Bryson DeChambeau, Dustin Johnson, Jon Rahm, and Cameron Smith.
Financial documents from LIV Golf`s UK-based company indicate nearly $400 million in operating losses in 2023 for tournaments outside the U.S. Financial data for U.S. events is not publicly available.
LIV Golf`s new CEO, Scott O`Neil, stated that a deal with the PGA Tour is not essential for LIV Golf`s survival.
O`Neil expressed openness to a deal if it benefits the growth of golf but emphasized LIV Golf`s positive outlook, growth, and future prospects, regardless of a merger.
O`Neil is not directly involved in the PIF`s negotiation with the PGA Tour.
O`Neil conveyed his optimism about LIV Golf`s future and expressed hope for increased opportunities for top players from both tours to compete together, whether through a formal merger or other means.
The PGA Tour and PIF had previously engaged in lawsuits against each other, which were dropped when they agreed to a framework agreement on June 6, 2023, aimed at forming an alliance to reunify golf. This initial agreement expired at the end of 2023, but negotiations have continued.
In January 2024, the PGA Tour and Strategic Sports Group (SSG) finalized an agreement for SSG to invest up to $1.5 billion in PGA Tour Enterprises.