The PGA Tour and Saudi Arabia’s Public Investment Fund are expected to announce an extension to their negotiation deadline with a goal of combining commercial operations under a new for-profit entity dubbed PGA Tour Enterprises, according to the Telegraph. The original framework agreement called for a deal to be struck by the end of the 2023 calendar year, but sluggish discussions and little progress have delayed the timeline.
Hopes are the two parties will come together and finalize a deal before the 2024 Masters in April.
Negotiations have stalled for numerous reasons, one of which was private equity money entering the equation and making Sthe audi PIF governor, Yasir Al-Rumayyan, feel as if LIV Golf was no longer at the center of conversations. The league responded in early December by signing world No. 3 Jon Rahm, its biggest acquisition to date, in what many believed was a negotiation tactic to bring the PGA Tour back to the table.
The original deal framework between the PGA Tour and the PIF featured a non-solicitation agreement, which was in place to prevent LIV Golf from poaching PGA Tour players, including Rahm, during negotiations. However, that clause was removed amid antitrust concerns from the United States Department of Justice, which consequently created an opening that could lead to additional player movement between now and April. The U.S. government’s interest in the PGA Tour and LIV Golf has not helped the pace of play either.
News of an updated deadline comes at the end of an uncharacteristically busy December in the world of golf. Three weeks ago, the PGA Tour policy board informed membership of its intentions to further negotiate with Strategic Sports Group, a collection of U.S. sports team investors, while also continuing its talks with the PIF. SSG is spearheaded by Fenway Sports Group and includes the likes of Arthur Blank, Gerry Cardinale, Mark Attansio and Cohen Private Ventures. The PGA Tour had also considered deals from Endeavor and Acorn Growth Company.
“I am confident a deal will get done in some way,” Tiger Woods said at the Hero World Challenge. “Whether that comes Dec. 31 or is pushed back, we’re all — all sides understand we’re working together. There are no lawsuits. Everyone’s understanding what that looks like, and we’re all progressing going forward. Everyone’s working right now with no animosity. We’re trying to work to try and get a deal done for the Tour and for all parties involved.”
ESPN reported SSG will infuse more than $3 billion into PGA Tour Enterprises, while PIF’s contribution would raise the combined total to more than $7 billion. Both SSG and PIF would remain minority investors, while the PGA Tour would maintain majority ownership. PGA Tour and DP World Tour players would also receive an equity share.
PGA Tour commissioner Jay Monahan and Al-Rumayyan had a meeting on the calendar the week before Christmas, though details of their encounter have yet to come to light.