The PGA Tour and Saudi Arabia's Public Investment Fund have announced that efforts are being made to extend the negotiation deadline between the parties as they continue working towards a goal of combining commercial operations under a new for-profit entity dubbed PGA Tour Enterprises. The original framework agreement called for a deal to be struck by Dec. 31, 2023, but sluggish discussions delayed the timeline.
"I am pleased to report that we have made meaningful progress and have provided SSG [Strategic Sports Group] with the due diligence information they requested," PGA Tour commissioner Jay Monahan wrote in a memo to players. "As we move forward in our discussions, we are focused on the finalization of terms and drafts of necessary documents.
"We also continue our active and productive conversations with PIF and DP World Tour. While we had initially set a deadline of December 31, 2023, to reach an agreement, we are working to extend our negotiations into next year based on the progress we have made to date. Our goal for 2024 is to reach agreements with SSG, PIF and the DP World Tour, bringing them on board as minority co-investors in PGA Tour Enterprises. These partnerships will allow us to unify, innovate and invest in the game for the benefit of players, fans and sponsors."
Although no official deadline was announced by the PGA Tour, hopes are the two parties will come together and finalize a deal before the 2024 Masters in April, according to the Telegraph. The PGA Tour's talks with SSG leaked two weeks ago and are believed to be further along at this point.
Negotiations with the Saudi PIF have stalled for numerous reasons, one of which was private equity money entering the equation making its 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.
Two weeks ago, the PGA Tour policy board informed membership of its intentions to further negotiate with SSG, 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 players and the DP World Tour would also receive an equity share.
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.