The PGA Tour agreed to merge with Saudi-backed rival LIV Golf, ending years of contention between the two competitors.
The signed agreement between the PGA Tour, DP World Tour and the leaders of LIV Golf was one of several documents sent to a Senate subcommittee that is looking into golf’s new entity.
PGA Tour commissioner Jay Monahan, DP World Tour CEO Keith Pelley and Public Investment Fund governor Yasir Al-Rumayyan signed the agreement on May 30 ahead of a blockbuster announcement on June 6.
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The U.S. Senate Permanent Subcommittee on Investigations invited Monahan, Al-Rumayyan and LIV Golf CEO Greg Norman to testify at a hearing on July 11 regarding their organizations’ new partnership, which is titled “NewCo” throughout the agreement. Sen. Richard Blumenthal, D-Conn., who is a chairman for the committee, requested the framework agreement and other documents ahead of the hearing.
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According to the signed agreement, the PGA Tour and DP World Tour have agreed to work with the leaders of LIV Golf to decide how LIV defectors will be reintegrated into their new entity and how they could be punished.
“Subject to execution of the Definitive Agreements, PIF, the PGA TOUR and the DP World Tour will work cooperatively and in good faith to establish a fair and objective process for any players who desire to re-apply for membership with the PGA TOUR or DP World Tour following the completion of the 2023 season and for determining fair criteria and terms of re-admission consistent with each Tour’s disciplinary policies,” the agreement read.
Last July, the PGA Tour suspended players who participated in LIV events because they did not have the necessary releases to switch tours.
Less than a year later, the PGA Tour and European Tour joined forces with Saudi Arabia’s sovereign wealth fund, which runs LIV, with “a common goal of creating a global golf partnership and of growing and promoting the game of golf globally, ending divisions and unifying the game of golf for the benefit of all of their shareholders, including players, sponsors, and fans of the game worldwide.” The PGA Tour is given “full decision-making authority” for all matters connected to competition.
While the document does not include how much the PIF will invest into the new entity, the PGA Tour has said the agreement will not affect its status as a tax-exempt nonprofit. However, Blumenthal told Monahan that the agreement with the PIF could put the tax-exempt status in jeopardy.
The details of the final agreement are still being worked out, according to ESPN. It will then need approval from the PGA Tour Policy Board.
“The framework outlines a future for professional golf under the PGA Tour's leadership that benefits players, fans, and the sport,” the PGA Tour said Monday in a statement Monday. “Following the recent resolution of litigation, we're working productively towards a definitive agreement.”
