On January 31st, the PGA Tour signed a $3 billion deal with the consortium of American sports team owner groups, SSG (Strategic Sports Group). The group has made an initial $1.5 billion investment in the Tour, which will help in its growth and increase commercialization opportunities for the players and the league.

Now, 34 days after the lucrative deal between the two, the Tour has announced the board committee for PGA Tour Enterprise, a newly formed for-profit entity. The board members include pros, the commissioner, and representatives from SSG. When it comes to the Tour and PIF’s plan for a merger, however, the newly formed board casts a dark shadow!

Will the PGA Tour not merge with PIF anymore? 

Before the PGA Tour shook hands with SSG, the first prioritized partner of the circuit was Saudi Arabia’s Public Investment Fund (PIF). The merger plans with LIV Golf’s investors were announced on June 6, 2023. What was also made public was the construction of the board committee for the PGA Tour Enterprise. It was supposed to consist of Yasir Al-Rumayyan as Chairman, Jay Monahan as CEO, and a representative from the DP World Tour.

However, as Fried Egg Golf posted on X, the current Board of Directors differs significantly from what was promised nine months ago. It now has six PGA Tour Policy Board members: Tiger Woods, Peter Malnati, Patrick Cantlay, Adam Scott, Webb Simpson, and Jordan Spieth, with Monahan as the Chief Executive Officer. Moreover, instead of Al-Rumayyan, in the seat of chairman, it will be Woods as the vice chairman.

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The board will also have four members from the SSG and two members from the Tour’s side to complete the board of committees. Though the newly formed committee is a growth symbol for the PGA Tour, it differs from its initial plans with PIF. Furthermore, the current board also sheds a negative light on the PGA Tour-PIF merger, implying that it might not come to fruition.

Will the PGA Tour move forward with PIF? The chances are bleak but never zero. With the Tour gathering opportunities to increase its profits and investing billions in the game, the PIF might be a suitable partner for a better flow of money and to not risk another blow from LIV Golf.

Why may the PGAT-PIF merger be necessary for the Tour? 

The more investments, the better, and if the PGA Tour signs the framework agreement PIF, one thing will be imminent: the insurmountable amount of investment in the PGA Tour Entreprise. The PIF has $750 billion in assets, and as a sole investor in LIV Golf, they invested $750 million in the first, even after getting no return.

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Moreover, in 2023 too, LIV signed Jon Rahm for a reported $550 million deal and signed more players for the initial period in 2024. On the other hand, the LIV pros, though not yet approved for OWGR, have shown their remarkable skills to the world; the invitation to Joaquin Niemann for the Masters and the PGA Championship is a testament to the same. As a result, if any LIV golfers win the majors, it may become an obligation on the major committees to make a pathway for the pros.

Furthermore, when and how that is done, there will be more chances and choices for the PGA Tour pros to move on to LIV Golf for a lucrative deal. The tour can be threatened as more pros may sign with LIV and leave the PGA Tour. It may not want the best players to jump ship, and thus, the uncertain and delayed merger may be a necessity moving forward.

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