01 January 2024 , 01:56
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PGA Tour commissioner Jay Monahan has issued a memo to Tour members to provide an update on negotiations with LIV Golf, confirming the aim is for the Saudi Arabia Public Investment Fund to be a minority investor in the new organisation.
It was announced on June 6 that the PGA Tour, DP World Tour, and LIV Golf would enter negotiations over a merger with a proposed framework in place. The talks between the PGA Tour and the Public Investment Fund of Saudi Arabia (PIF), the financial backers of LIV Golf, have been ongoing for several months.
An original deadline of December 31 was set for an agreement to be reached. However, reports emerged earlier in the week that there were plans for an extension to be announced that would see negotiations continue into 2024.
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Now the PGA Tour has provided an update to Tour members on the negotiations with PIF, which includes a memo from Monahan. The Tour states that the memo included three points, with the first emphasising that there has been "meaningful progress” in the talks over the proposed merger.
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The memo also had details on the discussions over potential investment from the Strategic Sports Group (SSG), which is in talks over investing in the new proposed venture by the Tour, which is known as 'PGA Tour Enterprises'. Liverpool Football Club owners Fenway Sports Group (FSG) are reported to be part of SSG that is in talks to invest in the PGA Tour.
With just hours remaining before the original deadline passed, the memo from Monahan also stressed that negotiations between the PGA Tour and PIF remain “active and productive.” The memo also confirmed the intention to extend the deadline into the New Year.
“These partnerships will allow us to unify, innovate, and invest in the game for the benefit of the players, fans, and sponsors," Monahan's memo to Tour players added.
The past few months have seen increased speculation over the future of the PGA Tour and LIV Golf. It was in December that reigning Masters champion Jon Rahm completed a £450 million deal to join the Saudi-funded breakaway league, which will see him begin competing in the 2024 season, which is due to begin in February.
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The memo from Monahan is the second to be sent to Tour players in December to provide an update on the discussions with LIV Golf. The first memo outlined the intention for negotiations to continue between the PGA Tour and PIF for several more weeks, despite the original deadline nearing.
“We also anticipate advancing our negotiations with PIF in the weeks to come,” read a memo sent to members of the PGA Tour on December 10. “Further, the DP World Tour will continue to be an important part of the process as we build toward PGA TOUR Enterprises.”