The battle between the PGA Tour and LIV Golf has ended in the most unexpected and shocking way possible.
The rival entities are merging along with the DP World Tour to create a collectively owned, for-profit operation overseeing the sport’s premier professional circuits. The sides formally announced the deal on Tuesday morning, throwing the world of golf into complete chaos as players learned about the deal on social media.
LIV Golf and the PGA Tour had been locked in an antitrust battle as the Saudi-backed startup league spent the two years luring some of the biggest names in the sport away from the PGA Tour.
It’s all true: Here’s the announcement… pic.twitter.com/dYADhD0EMc
— Jason Sobel (@JasonSobelTAN) June 6, 2023
Here’s everything we know about the deal so far.
This story will be updated
LIV Golf defectors can re-apply for PGA status
The big, immediate question with the merger is what happens to former PGA Tour players who were suspended indefinitely for defecting to LIV Golf.
The short answer: there is now a path for them to rejoin the PGA Tour.
Following the 2023 season, LIV and PGA will establish a “fair and objective process” for players who want to re-apply for the PGA Tour or the DP World Tour.
MORE GOLF:
Is LIV Golf going away?
Not quite.
The two sides will “conduct a comprehensive evaluation” to determine how to integrate the team golf format championed by LIV into the pro game.
In the meantime, LIV Golf will fulfill its 2023 season requirements as planned. Seven events remain on the LIV calendar through November 2023.
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One key name does NOT appear on the press release announcing the unification of LIV Golf and the PGA Tour:
Greg Norman.
— James Colgan (@jamescolgan26) June 6, 2023
What about all those lawsuits between LIV and PGA?
The litigation is all over except for the paperwork and billable hours.
PGA Tour commissioner Jay Monahan — who is set to become the CEO of the new entity — told CNBC on Tuesday morning that the legal battles are over and justified the deal as a long-term vision for the sport.
“Today that tension [between PGA and LIV] goes away,” Monahan said. “The litigation is dropped. We’re announcing to the world that on behalf of this game we’re coming together. It’s less about how people respond today and it’s all about how people respond in ten years. When they see the impact we’re having on this game together there will be a lot of smiles on peoples faces.”
In memo sent to players regarding PGA Tour, DP World Tour, PIF and LIV Golf agreement note, “brings about an end to all pending litigation between the participating entities and prohibits any further recruitment of PGA TOUR, DP World Tour or LIV Golf members.” pic.twitter.com/GzRmVtKQNJ
— Rex Hoggard (@RexHoggardGC) June 6, 2023
The PGA is going for-profit, with the help of Saudi Arabia
Before the merger, the PGA Tour was strictly a non-profit entity. That all changes now thanks to Saudi Arabia.
This is where things start getting in the weeds, but stick with us.
The Kingdom of Saudi Arabia operates the Public Investment Fund, one of the largest sovereign wealth funds in the world. It’s controlled by Crown Prince Mohammed bin Salman.
Yasir Al-Rumayyan is the governor of PIF. As part of the merger, Al-Rumayyan will become the chairman of the new entity.
Per the release:
The parties have signed an agreement that combines PIF’s golf-related commercial businesses and rights (including LIV Golf) with the commercial businesses and rights of the PGA TOUR and DP World Tour into a new, collectively owned, for-profit entity to ensure that all stakeholders benefit from a model that delivers maximum excitement and competition among the game’s best players.
In addition, PIF will make a capital investment into the new entity to facilitate its growth and success. The new entity (name TBD) will implement a plan to grow these combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already underway. With LIV Golf in the midst of its second, groundbreaking season, the PGA TOUR, DP World Tour and PIF will work together to best feature and grow team golf going forward.
With @PGATOUR and @livgolf_league agreeing to combine, what will the new organization look like?
Saudi PIF Governor Yasir Al-Rumayyan and Tour Commissioner Jay Monahan break down the details with @davidfaber. pic.twitter.com/z62iNxNd5Y
— Squawk on the Street (@SquawkStreet) June 6, 2023
Did any players know this was coming?
Apparently not.
I love finding out morning news on Twitter
— Collin Morikawa (@collin_morikawa) June 6, 2023
