The PGA Tour has agreed to merge with LIV Golf, a Saudi-backed rival. This merger would resolve ongoing litigation and create a larger golf enterprise.
An agreement was signed between two entities to combine the commercial businesses and rights of the PGA Tour and LIV Golf into a new for-profit company, which is yet to be named. The DP World Tour, also known as the European PGA Tour, was reported to be included in the agreement according to CNBC.
LIV Golf, which is supported by the Saudi Arabia Public Investment Fund controlled by the Saudi crown prince, has been involved in antitrust lawsuits with the PGA Tour over the past year. The newly announced agreement would resolve all ongoing litigation.
CNBC’s David Faber reported on Tuesday that PIF is ready to invest a significant amount of new capital into the new entity. The terms of the deal were not disclosed.
Related: LIV Golf Picks Up Rare Win In Its Antitrust Suit Against The PGA Tour
PIF Governor Yasir Al-Rumayyan said Tuesday on CNBC’s “Squawk on the Street” that after the merger is finalized, which he expects to be “in a matter of weeks,” the new board is prepared to evaluate every proposal that is presented. Al-Rumayyan is slated to serve as chairman of the board.
“Whatever it takes that’s … what we’re committed for,” Al-Rumayyan told Faber.
As per the agreement, the groups will create an impartial procedure for players who wish to apply for membership with the PGA Tour or DP World Tour after the conclusion of the 2023 season, as stated in a press release.
The recent sports agreement, the second of its kind following World Wrestling Entertainment’s merger with Endeavor Group’s UFC, will need approval from the PGA Tour policy board, according to a memo from Commissioner Jay Monahan obtained by CNBC.
