Negotiations between the PGA Tour and the Saudi Arabian Public Investment Fund over a potential merger in men’s professional golf are “still very much alive”, according to a report by the New York Times.
The Times’ DealBook reporter, Lauren Hirsch, has stated that not only are those conversations still ongoing, but – according to two people familiar with the talks – term sheets have been exchanged “in recent days” in relation to a deal that would see the PIF deposit $1.5 billion into PGA Tour Enterprises – the US circuit’s for-profit arm.
Any such investment from the PIF would follow January’s announcement that the Strategic Sports Group – featuring several American billionaires – would be injecting $1.5 billion into PGA Tour Enterprises as part of a $3 billion overall package which saw the group also take a minority stake.
At the time, it was suggested that far from the PGA Tour shunning PIF finances as a result of the recent SSG investment, Saudi Arabia’s sovereign wealth fund may still be able to join forces at a later date – “subject to any necessary regulatory review and approvals.”
From the PGA Tour’s point of view, the SSG deal was seen as a way of keeping up with the PIF for the time being and – crucially – ensuring any agreement with LIV Golf’s backers would stand a far better chance of being passed by US government officials further down the line.
In todays @dealbook ⬇️ https://t.co/JBfEILseoIMay 21, 2024
According to the latest New York Times report, “the deal now on the table” would see the PGA Tour maintain majority control of its ‘Enterprises’ branch while receiving $3 billion worth of investment – split equally between the Saudis and their American partners. Yet, Hirsch also pointed out that “a deal is far from certain” at this point, with the future of LIV Golf still to be decided.
The report comes just days after two independent directors on the PGA Tour board resigned, with one citing a lack of meaningful progression towards a unification agreement as part of the reason for his exit.
Firstly, Jimmy Dunne – who was the central figure in helping to negotiate the PGA Tour’s framework agreement with the Saudi PIF last year – left his role in the build-up to the 2024 PGA Championship at Valhalla, calling his former position “utterly superfluous.”
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