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Saudi Arabia’s Public Investment Fund has failed in an attempt to persuade the PGA Tour to deliver serious concessions in exchange for a $1.5bn (£1.14bn) investment, leaving elite golf no closer to reconciliation just days from the season’s first major.
The PGA Tour’s stance will give credence to the rising sense that the organisation has increasing confidence in its position after a turbulent period caused by the formation of the Saudi-backed LIV Tour.
Sources indicate that in correspondence sent to the PGA Tour last week, the PIF sought assurances the LIV circuit could continue to operate and that its governor, Yasir al-Rumayyan, could take a place as co-chairman of PGA Tour Enterprises. In exchange, the PIF would invest $1.5bn in PGA Tour Enterprises, the commercial entity created after peace appeared to have broken out in summer 2023. The $1.5bn has been planned to match identical investment from the US-based Strategic Sports Group.
The PGA Tour replied to the PIF’s demands on Monday, with neither deemed acceptable. Those with detailed knowledge of the situation stress reunification of golf is the PGA Tour’s core aim, a matter that is hardly assisted by LIV continuing in its present form. There would also be understandable unease within the PGA Tour should Rumayyan, whose organisation has bankrolled LIV, be afforded such a prominent position as the breakaway tour continues on its own path.
Donald Trump, the US president, wants golf to come together but if the PIF sticks to its present standpoint, that feels highly unlikely. Trump is likely to appear at his Doral resort this week where LIV is staging a tournament.
Last week’s correspondence between the PIF and the PGA Tour is understood to have been the first since a fraught meeting at the White House in late February. There, Rumayyan is known to have made it clear he believed LIV had not been respected by the traditional ecosystem.
A dozen players who perform under the LIV banner will tee up at the Masters next Thursday. Phil Mickelson, Brooks Koepka, Dustin Johnson and others departed the PGA Tour for LIV amid significant rancour. Rumayyan clearly retains deep personal faith in LIV. It is also obvious these talks cannot continue indefinitely. The PGA Tour, meanwhile, declined to comment on the recent correspondence.
Speaking early last month Rory McIlroy, a member of the PGA Tour’s transaction committee, appeared to make pointed reference to the PIF’s role in negotiations. “It takes two to tango,” said the Northern Irishman. McIlroy also made clear a deal was no longer essential for the PGA Tour.
Jay Monahan, the PGA Tour commissioner, also used the recent Florida swing to highlight his organisation’s strength in respect of commercial pull, audience figures and engagement. Intriguingly, Monahan revealed the PGA Tour had polled their audience on reunification with 70% in favour. At the Players Championship Monahan said: “We believe there’s room to integrate important aspects of LIV Golf into the PGA Tour platform.” Monahan’s tone implied a pendulum had swung back in his favour.
Scott O’Neil, the recently-appointed LIV chief executive, is expected to visit Augusta National for the Masters. Speaking at Doral he said: “Do we have to do a deal? No. It would be nice to do a deal, so long as we’re all focused on the same things.” He is not directly involved in these negotiations. The next key test of LIV’s strength will arrive with contract renewals due for players who left the PGA Tour, originally for guaranteed payments worth hundreds of millions of dollars.
The PIF has been approached for comment.
