PGA Tour cast fresh doubt over LIV Golf merge in leaked memo to players

13 October 2023 , 14:41

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The PGA Tour and LIV Golf are set to work in unison (Image: Getty Images)

The PGA Tour are considering welcoming other investment away from their new-found Saudi Arabian allies, with doubt cast over their proposed unison with LIV Golf.

In June the PGA Tour confirmed it had reached a framework agreement with the Public Investment Fund of Saudi Arabia (PIF) that would bring to an end the ugly dispute between the Tour and the LIV setup. Since then the two parties have remained in talks, with a deadline of December 31 set to complete a deal.

As negotiations continue the American-based circuit have provided an update in a memo to players, confirming their plans to reach an agreement with PIF, but admitting they were open to investment offers from elsewhere.

Per ESPN, the memo read: "We remain focused on reaching a Definitive Agreement with PIF and the DP World Tour, but not surprisingly, these negotiations have resulted in unsolicited outreach and proposals from a number of other interested investors. All of this activity reinforces the Tour's strong position and our potential for growth."

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According to the report, doubt has been cast over the deal with the Saudi backers with a finalised agreement 'far from done'. If negotiations were to fall through, the Tour are said to have a whole host of partners lined up to come in and replace PIF.

"There is no shortage of interest in high roller entities to put up money in exchange for a piece of the PGA Tour," an ESPN source said. "LIV Golf is not going to go away. So the tour will need deep pockets to continue to go toe to toe with the Saudis...

Jay Monahan is the man in charge of the PGA Tour (Getty Images)

"I don't think there will be a problem for them [the PGA Tour] to find wealthy enough partners." The U.S. Department of Justice's Antitrust Division are delving into the deal, but it is claimed that they have encountered a number of issues.

The source commented: "I don't think it will ever happen. I don't think the Department of Justice would ever approve a merger with the PGA Tour. And I don't think the Saudis are pleased with how little influence they'd get in a merged entity. For those reasons, I don't think the merger is ever going to happen."

Bloomberg reported last week that the December 31 deadline is set to be extended, with negotiations taking longer than expected. A further hurdle that the two sides are said to have encountered is the input of PGA Tour players, who are said to be chasing a stake in the joint entity. The players are being advised by investment bank Raine Group.

Joshua Lees