A PGA TOUR emblem is seen after play was suspended because of extreme storms throughout the third spherical of THE PLAYERS Championship held at THE PLAYERS Stadium course at TPC Sawgrass on Could 14, 2011 in Ponte Vedra Seashore, Florida.
Streeter Lecka | Getty Photographs
PGA Tour and LIV Golf are working to increase their proposed merger deadline, which was initially set at Dec. 31, Commissioner Jay Monaha instructed gamers in a memo on Sunday.
“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,” in response to the memo obtained by CNBC.
Monahan instructed gamers their aim for 2024 is to succeed in agreements with Strategic Sports activities Group (SSG), the Public Funding Fund (PIF) and DP World Tour, bringing them on board as minority co-investors in PGA Tour Enterprises.
The PGA Tour not too long ago introduced that it was within the final round of negotiations with a coalition of U.S. traders, referred to as Strategic Sports activities Group. The SSG is led by Fenway Sports activities Group. Monahan stated they’ve made “meaningful progress” and have supplied SSG with the due diligence data they requested.
“These partnerships will allow us to unify, innovate and invest in the game for the benefit of players, fans and sponsors,” he stated.
The competing golf leagues are anticipated to make a proper determination on the mix forward of the Masters match in April, in response to The Telegraph, which first reported the extension.
The delay is the newest replace in a protracted and tumultuous saga between the PGA Tour and Saudi Public Funding Fund-backed LIV Golf that has divided gamers and will dramatically change skilled golf if the merger is accomplished.
The 2 entities agreed in June to combine commercial operations, surprising the worldwide golf group and elevating questions round competitors and human rights issues. Below the structure of the agreement, PGA Tour would maintain a everlasting controlling curiosity within the new entity’s board of administrators and PIF could be a noncontrolling minority investor.
If the proposed merger is accomplished, PIF is ready to speculate $1 billion into the brand new business enterprise. The settlement additionally contains the DP World Tour, also referred to as the PGA European Tour.
The deal is topic to possible antitrust scrutiny from the U.S. Federal Commerce Fee and Justice Division.
Earlier than the settlement, PGA Tour and LIV had been locked in heated litigation as LIV Golf lured Tour gamers away, providing massive contracts. LIV Golf most not too long ago signed world No. 3 participant Jon Rahm to a contract price a reported $300 million.
Final month, the Tour instructed gamers it will start providing direct equity ownership within the new firm after it reaches a cope with traders.
In late November, PGA Tour Commissioner Jay Monahan instructed Andrew Ross Sorkin on the DealBook Summit that he was assembly with Yasir Al-Rumayyan, chairman of LIV Golf and PIF governor, to proceed discussions.
“When this gets finalized, the PGA Tour is going to be in a position where the athletes are owners in their sport and you’ve got not only the PIF, but you’ve likely got another co-investor with significant experience in business, in sport and [in] brand that’s going to help take the PGA Tour to another level,” Monahan stated on the time.
