The PGA-LIV Merger: A New Era of Golf Begins!

PONTE VEDRA BEACH, Florida – The Unification of Golf: A Groundbreaking Agreement

The world of professional golf is set to experience a transformation of epic proportions as the PGA TOUR, DP World Tour, and the Public Investment Fund (PIF) join forces in a landmark agreement. This historic partnership aims to unify the game of golf on a global scale, bringing together the commercial businesses and rights of all parties involved. By combining their expertise and resources, the PGA TOUR, DP World Tour, and PIF aspire to create an organization that maximizes excitement and competition among the world's best players while benefiting all stakeholders.

The Agreement to Unify Golf

The Parties Involved

The PGA TOUR, DP World Tour, and PIF have signed an agreement to establish a new, collectively owned, for-profit entity. This entity will merge PIF's golf-related commercial businesses and rights, including the groundbreaking LIV Golf, with the commercial businesses and rights of the PGA TOUR and DP World Tour. This unification sets the stage for a future where golf can thrive and reach new heights.

Objectives of the Agreement

The primary goal of this agreement is to ensure that the game of golf remains vibrant and exciting for players and fans alike. By pooling their resources and expertise, the parties involved aim to create a model that delivers maximum excitement and competition among the game's top players. The unified entity will work towards growing the combined commercial businesses, driving greater fan engagement, and accelerating existing growth initiatives.

Capital Investment by PIF

To facilitate the growth and success of the new entity, PIF will make a significant capital investment. This investment will provide the necessary resources to implement the growth plan, expand commercial operations, and propel the game of golf into new territories.

Growing the Combined Commercial Businesses

Driving Fan Engagement

One of the key focuses of the new entity will be to enhance fan engagement. By leveraging the strengths of each tour and the innovative approach of LIV Golf, the unified entity will strive to deliver an unparalleled experience to golf fans worldwide. Through creative initiatives and enhanced coverage, the entity aims to captivate existing fans and attract new ones.

Accelerating Growth Initiatives

Building upon the growth initiatives already in progress, the unified entity will seek to push the boundaries of the game. This includes exploring new formats, venues, and technologies to create a golfing experience that is fresh, exciting, and appealing to a wider audience. The new entity will foster innovation while honoring the rich traditions and history of the game.

Focus on Team Golf

With LIV Golf gaining recognition for its groundbreaking team golf concept, the PGA TOUR, DP World Tour, and PIF will work together to feature and grow this unique aspect of the game. By emphasizing team golf, the unified entity aims to enhance competition and camaraderie among players while captivating fans with a dynamic and thrilling experience.

Resolution of Pending Litigation

End to Pending Litigation

Today's announcement marks a significant milestone in the world of golf as it paves the way for an amicable resolution of all pending litigation between the participating parties. This agreement demonstrates a commitment to putting past disputes behind and focusing on a future that benefits the game and its stakeholders.

Fair and Objective Process for Players

The PGA TOUR, DP World Tour, and the new entity will collaboratively establish a fair and objective process for players who desire to re-apply for membership following the completion of the 2023 season. This process will ensure that criteria and terms for re-admission are determined in a transparent manner, aligned with the policies of each respective tour.

Comments from PGA TOUR Commissioner Jay Monahan

PGA TOUR Commissioner Jay Monahan expresses his enthusiasm and optimism regarding this transformative partnership. He recognizes the significant value brought by the PGA TOUR's history, legacy, and pro-competitive model. By combining these strengths with the DP World Tour and LIV Golf, including the team golf concept, the unified entity is poised to benefit players, commercial and charitable partners, and most importantly, the fans. Monahan reiterates the collective commitment to promoting competition and securing the future of the game.

Monahan states, "After two years of disruption and distraction, this is a historic day for the game we all know and love. This transformational partnership recognizes the immeasurable strength of the PGA TOUR's history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf's players, commercial and charitable partners, and fans. Going forward, fans can be confident that we will, collectively, deliver on the promise we've always made – to promote competition of the best in professional golf and that we are committed to securing and driving the game's future."

Statements from PIF Governor Yasir Al-Rumayyan

PIF Governor Yasir Al-Rumayyan highlights the partnership's significance and the opportunities it presents for the game of golf. PIF, known for its success in unlocking value and bringing innovation to various sectors worldwide, is proud to partner with the PGA TOUR. Al-Rumayyan emphasizes their commitment to unifying, promoting, and growing the game of golf globally while offering a high-quality product to millions of existing fans and cultivating new ones.

Al-Rumayyan states, "Today is a very exciting day for this special game and the people it touches around the world. We are proud to partner with the PGA TOUR to leverage PIF's unparalleled success and track record of unlocking value and bringing innovation and global best practices to business and sectors worldwide. We are committed to unifying, promoting, and growing the game of golf around the world and offering the highest-quality product to the many millions of long-time fans globally, while cultivating new fans."

Governance of the New Entity

The new entity's Board of Directors will oversee and direct all golf-related commercial operations, businesses, and investments. This collective governance approach will ensure that the interests of all stakeholders are represented and decisions are made in the best interest of the game.

To maintain a cohesive schedule of events that excites fans, sponsors, and all stakeholders, the unified entity will work collaboratively. The entity aims to strike a balance between tradition and innovation, showcasing the best of professional golf while exploring new opportunities for growth and engagement.

PIF, as the initial exclusive investor, will have the opportunity to further invest in the new entity. They will also have the right of first refusal on any capital investments, including those in the PGA TOUR, LIV Golf, and DP World Tour. The PGA TOUR will appoint a majority of the Board and hold a majority voting interest in the combined entity.

Preservation of Existing Structures

The agreement ensures the preservation of existing structures, including the continuation of PGA TOUR Inc. as a 501(c)(6) tax-exempt organization. PGA TOUR Inc. will retain administrative oversight of events contributed by the PGA TOUR, including event sanctioning, competition administration, and rule enforcement. Jay Monahan will continue to serve as Commissioner, and Ed Herlihy will retain his position as PGA TOUR Policy Board Chairman. PIF Governor Yasir Al-Rumayyan will join the PGA TOUR Policy Board.

Similarly, the DP World Tour and LIV Golf will maintain administrative oversight of events on their respective tours, preserving the unique qualities that make them integral parts of the golfing landscape.

Key Members of the New Entity

The new entity will be led by Chairman Yasir Al-Rumayyan and Chief Executive Officer Jay Monahan. Additionally, an Executive Committee comprising Al-Rumayyan, Monahan, Herlihy, and PGA TOUR Policy Board member Jimmy Dunne will provide strategic guidance and leadership. The full Board of Directors will be announced at a later date, ensuring representation from all three founding members.

Excitement for the Future

The agreement represents a significant step forward in the relationship between the PGA TOUR, DP World Tour, and PIF. It paves the way for a future where golf can flourish on a global scale, reaching new audiences and exciting existing fans. The impact of this partnership on the DP World Tour is particularly noteworthy, as it reignites their relationship with PIF and further strengthens their strategic alliance with the PGA TOUR.

As the details of the agreement are finalized in the coming months, golf enthusiasts and stakeholders can eagerly anticipate a new era of the game, built on collaboration, innovation, and an unwavering commitment to its future.

Conclusion

The unification of the PGA TOUR, DP World Tour, and PIF marks a historic moment in the world of golf. This groundbreaking agreement aims to transform the game on a global basis, ensuring maximum excitement and competition among the best players. With a focus on growing commercial businesses, driving fan engagement, and embracing team golf, the new entity aspires to create a golfing experience that captivates audiences worldwide.

The resolution of pending litigation and the establishment of a fair and objective process for players reflect the commitment of all parties involved to move forward in a collaborative and positive manner. The partnership between the PGA TOUR, DP World Tour, and PIF opens doors to new possibilities and opportunities for the game's growth and development.

As PGA TOUR Commissioner Jay Monahan aptly states, "This will engender a new era in global golf, for the better." With PIF's investing experience and the shared vision of all involved, the game of golf is set to reach unprecedented heights, uniting communities and inspiring generations to come.

FAQs

1. What is the significance of the agreement to unify golf?
• The agreement to unify golf between the PGA TOUR, DP World Tour, and PIF is highly significant as it aims to bring together the commercial businesses and rights of all parties involved. This partnership creates a new entity that seeks to maximize excitement and competition among the best players in the game while benefiting all stakeholders.
2. How will the new entity drive fan engagement?
• The new entity will leverage the strengths of each tour and the innovative approach of LIV Golf to enhance fan engagement. Through creative initiatives and enhanced coverage, the unified entity aims to captivate existing fans and attract new ones.
3. What is the resolution for pending litigation?
• The announcement of this partnership marks the end of pending litigation between the participating parties. The agreement demonstrates a commitment to putting past disputes behind and focusing on a future that benefits the game and its stakeholders.
4. Who are the key members of the new entity?
• The new entity will be led by Chairman Yasir Al-Rumayyan and Chief Executive Officer Jay Monahan. An Executive Committee comprising Al-Rumayyan, Monahan, Herlihy, and PGA TOUR Policy Board member Jimmy Dunne will provide strategic guidance and leadership.
5. What impact will this partnership have on the DP World Tour?
• The partnership with PIF will further strengthen the strategic alliance between the DP World Tour and the PGA TOUR. It opens new opportunities and revitalizes the relationship between the two tours, enhancing their position in the global golfing landscape.
6. When will the details of the agreement be finalized?
• The details of the agreement, including the full Board of Directors and specific plans, will be finalized in the coming months. The parties involved will work together to ensure a smooth transition and implementation of the unified entity's vision.