The PGA Tour and LIV Golf have ended their years-long rivalry by announcing their merger, creating a global golf powerhouse and putting an end to all outstanding litigation between the two entities. The deal came together after weeks of discussions between top officials from both circuits, with Yasir Al Rumayyan, chairman of Saudi Arabia's Public Investment Fund, playing a key role behind the scenes.
Al Rumayyan, an avid golfer, reportedly flew around the world for several rounds of talks with PGA Tour officials to discuss a possible tie-up. He met with PGA board members Ed Herlihy and Jimmy Dunne in London in April before introducing them to PGA Tour Commissioner Jay Monahan in Venice. After final rounds of meetings in San Francisco, the deal was signed over the US Memorial Day weekend late last month.
The transaction surprised many players and corporate partners of the sport, with some claiming that they were left in the dark. The merger also raised concerns among US officials who were wary of Saudi Arabia's expanding influence in sports. Senate Chris Murphy, a Democrat from Connecticut, expressed surprise at the deal, tweeting that PGA officials had recently told him that Saudi Arabia's human-rights record should disqualify them from having a stake in a major American sport.
The financial terms of the deal have not been disclosed, but PIF, which is LIV Golf's biggest backer, reportedly plans to pump billions of dollars into the new entity. While the two sides moved quickly to seal the agreement, there are still details to be thrashed out by advisers in the coming weeks. These include assigning valuations to assets, including the European golf circuit known as the DP World Tour. Bankers from media boutique Allen & Co are reportedly set to help the PGA with valuation analysis.
The merger marks an important milestone for Saudi Arabia, which has been using sports to bolster its international reputation and shed its image as a petrostate. PIF has made significant investments in sports, including pouring in $2bn into LIV Golf last May and luring international soccer stars like Cristiano Ronaldo to play in the Kingdom. In addition to his role at PIF, Al Rumayyan also chairs Saudi Aramco and the English Premier League's Newcastle United Football Club, among other high-profile sports investments.