The ongoing talks between the PGA Tour policy board and the Saudi Public Investment Fund (PIF) have been all anyone’s been talking about in the golf world. The goal is to reach a framework agreement that could potentially change golf on a global scale. The negotiations have had their ups and downs, but they’re still going strong.
The latest from Lauren Hirsch of The New York Times about these ongoing talks offer some insight into the current state of the potential agreement. Despite the hurdles, both parties are still trying to make it happen, showing their dedication to the future of golf.
PGA Tour – PIF Negotiations: A Closer Look
The New York Times says that the Saudi PIF, which backs LIV Golf, and the PGA Tour have been talking about a potential deal for a few days now. This deal would see the Saudis putting $1.5 billion into the tour’s for-profit arm. However, neither the PIF nor the PGA has commented on the matter.
U.S. investors have already put $1.5B into the PGA Tour via the Strategic Sports Group (SSG). This group, which includes Fenway Sports Group, Mets owner Steve Cohen, Avenue Capital Group CEO Marc Lasry, and Falcons owner Arthur Blank, took a minority stake in PGA Tour Enterprises. This cash injection was seen as a way to help the tour compete better with the Saudis in the golf world or to make a Saudi investment more palatable to regulators.
The new deal would give the tour $3B in new funding, with the Saudis and U.S. investors each putting in half. The PGA Tour would still be in charge. However, the report says that the deal between the Saudis and the PGA is far from certain.
One of the biggest unresolved issues is what’s going to happen with LIV Golf. If a deal led to LIV disappearing, that could get the Justice Department’s attention. They’re looking into any deal on antitrust grounds. The DOJ might also look into any deal that gives the Saudi wealth fund seats on the PGA Tour board, because the agency is concerned about interlocking directorates.
The talks between the PGA Tour and the Saudi PIF are a big deal for golf. The outcome of these negotiations could have a big impact on the global golf landscape. As the world watches, the stakes are high and the future of golf is on the line.