During the third round of The Players Championship at The Players Stadium Course at TPC Sawgrass in Ponte Vedra Beach, Florida, on May 14, 2011, the PGA You can see the tour logo.
Streeter Rekka | Getty Images
The PGA Tour and LIV Golf are working to extend the merger deadline originally set for Dec. 31, Commissioner Jay Monahan told players in a memo Sunday.
“We originally set a December 31, 2023 deadline to reach an agreement, but based on progress to date, we are working to extend negotiations into next year,” the memo obtained by CNBC said. There is.
The postponement is the latest update in a long and tumultuous saga between the PGA Tour and the Saudi Public Investment Fund-backed LIV Golf, which has divided opinion among players and will lead to professional golf if the merger is completed. The golf world could change dramatically.
Monaghan told players that the tour’s goal for 2024 is to reach an agreement with Strategic Sports Group, Saudi Arabia’s Public Investment Fund and DP World Tour, with PGA Tour Enterprises joining as a minority co-investor. He said it was true.
The PGA Tour recently announced that it has entered final negotiations with a consortium of U.S. investors called Strategic Sports Group, led by Fenway Sports Group. Monaghan said the parties have made “significant progress” and the tour has provided the due diligence information it requested from SSG.
“These partnerships enable integration, innovation and investment in the game for the benefit of players, fans and sponsors,” he said.
According to the PGA Tour and LIV, the PGA Tour and LIV plan to make a formal decision on the pairings ahead of the Masters Tournament in April. telegraph paperfirst reported the extension.
Rival golf leagues agreed in June to merge their commercial operations, shocking the global golf community and raising questions about competition and human rights considerations. Under the structure of the agreement, the PGA Tour will have permanent control on the new company’s board of directors.
If the proposed merger is completed, PIF is prepared to invest $1 billion in the new commercial venture. The deal also includes the DP World Tour, also known as the PGA European Tour.
The deal could be subject to antitrust scrutiny by the U.S. Federal Trade Commission and the Department of Justice.
Prior to the agreement, the PGA Tour and LIV were embroiled in intense litigation as LIV Golf lured tour players with large contracts. LIV Golf recently signed world No. 3 player Jon Rahm to a one-year deal. reported to be $300 million.
The tour told players last month that it would begin offering direct equity ownership in the new company after reaching an agreement with investors.
In late November, PGA Tour Commissioner Jay Monahan told Andrew Ross Sorkin: deal book summit He said he was meeting with LIV Golf Chairman and PIF Governor Yasir Al Rumayan to continue discussions.
“If this is finalized, the PGA Tour will see athletes owning their sport, with PIF and perhaps another co-investor with extensive business experience. [in] It’s a brand that will help take the PGA Tour to a new level,” Monaghan said at the time.
Correction: The story has been updated to accurately reflect Jay Monaghan’s name, which was misspelled due to an editorial error.