Merger Still in Limbo: PIF Offered an Enormous $1B Equalization Pool for PGA Pros Who Rejected LIV Contracts

Published 12/07/2023, 10:24 PM EST

Follow Us

via Imago

The $3 billion framework agreement between the PGA Tour, DP World Tour, and LIV Golf appears to have faced another setback. As per new reports, the deal, which’s set to reach its deadline on December 31, has hit a stumbling block regarding the equalization pool for Tour players and PIF’s minority stake.

America’s Favorite Video Today

The equalization pool was PIF’s offer to the Tour pros who rejected LIV Golf’s contract proposals. About $1B was supposed to be equally distributed among the golfers. But apparently, this has been met with some friction within the board. At the same time, Jon Rahm, reportedly getting nearly half of that amount for joining LIV Golf, has also put into question whether the Tour can afford to continue the ongoing battle with the Saudi-backed side.

A lost LIV Golf opportunity for the PGA Tour?

ADVERTISEMENT

Article continues below this ad

The Greg Norman-fronted league offered $1B for the Tour players in addition to a $2B investment in the PGAT itself. However, NuclrGolf cited Sports Illustrated to reveal that “nothing came to be.”

The $2 billion investment was first reported in June, in the wake of the merger announcement. Insider sources revealed that LIV Golf was set to take a 20% stake in the union of the PGA Tour and the DP World Tour. The framework agreement would have established a for-profit entity with a new board, where Yasir Al-Rumayyan would have a seat.

Trending

Get instantly notified of the hottest Golf stories via Google! Click on Follow Us and Tap the Blue Star.

Follow Us

The Tour’s representative said that the PIF will be a minority investor in the for-profit entity. Interestingly, the Saudi sovereign fund allowed Jay Monahan to negotiate with any other partners. New reports have also indicated that Fenway Sports Group’s offer could rival the PIF in its scale and size. Notably, the PGA Tour is still a non-profit entity. As per Golf Digst, the Tour earned 2.25 billion in revenue last year.

As per the same report, the Tour Policy Board is in shambles, with factionalization strengthening its grasp. Notably, Alan Shipnuck also pointed towards a deeper problem within the Tour behind Jon Rahm’s defection to LIV Golf.

ADVERTISEMENT

Article continues below this ad

Has Jay Monahan lost control? 

The 2023 Masters Champion’s shock departure from the PGA Tour has riled many fans and analysts who have questioned the golfer’s integrity. However, Alan Shipnuck, the author of “LIV and Let Die,” claimed that there is a deep-rooted problem inside the tour that neither Jay Monahan nor the Tour Policy Board are willing to address.

3 Major Takeaways as Furious PGA Tour Pros Go Up Against Jay Monahan and Co in Shocking Anonymous Petition

ADVERTISEMENT

Article continues below this ad

It should be noted that Rory McIlroy, the only European representative on the board, also removed himself last month, a year before his term was scheduled to come to an end. As per the same Sports Illustrated report, the Northern Irishman has repeatedly clashed with Patrick Cantlay, who is also a part of the six-member board. Although Jay Monahan patted himself on the back, saying he is the best guy to run the tour, one after another setback puts a question mark on his negotiating prowess.

Watch This Story | Rory McIlroy Makes a Staggering Confession About the PGA Tour

SHARE THIS ARTICLE :

ADVERTISEMENT

Written by:

Parnab Bhattacharya

614Articles

One take at a time

I, Parnab Bhattacharya, am a budding golf writer at EssentiallySports. I am keen on constantly exploring my deep-rooted love for golf through my long-time passion for writing. With a strong knack for storytelling and experience in SEO content writing, I bring a unique blend of fluent writing and technical expertise.
Show More>

Edited by:

Tushhita.barua

ADVERTISEMENT

ADVERTISEMENT

EDITORS' PICK

America’s Favorite Video Today