07 June 2023 , 16:35
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The PGA Tour is set to receive more than $3billion (£2.4bn) in investment as part of the stunning merger with LIV Golf that rocked the world of sport.
On Tuesday, the Saudi Arabia-backed rival LIV Golf agreed to merge with the PGA Tour and end the divide in golf. Several of the world’s most prominent players - including Phil Mickelson, Brooks Koepka and Cameron Smith - decided to turn their backs on the PGA Tour in favour of the lucrative breakaway series.
It was a stunning - and unexpected - turn of events, with the PGA Tour suddenly partnering with its rival that is backed by the Saudi Arabia Public Investment Fund (PIF) owned by Saudi Crown Prince Mohammed bin Salman. The PIF has received staunch opposition since it began entering sports, with many - including the PGA Tour - pointing to its human rights record as a factor.
The move means the pending legal dispute between the tours will be placed on the back burner as they attempt to co-exist as a single entity. A signed agreement will combine the PGA Tour and LIV's commercial operations and rights into a new company that is yet-to-be-named. The agreement also includes the DP World Tour.
Late on Tuesday, a meeting was called where players were told the PGA Tour was set to receive more than $2-3bn with LIV Golf set to dissolve. After the meeting, Monahan said: “It probably didn’t seem this way to them, but as I looked to our players, those players that have been loyal to the PGA Tour, I’m confident that the move that they’ve made the right decision.
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“They’ve helped rearchitect the future of the PGA Tour. They’ve moved us to a more pro-competitive model.”
PGA Tour commissioner Jay Monahan addressed players over the shock merger with LIV Golf on Tuesday (Seth Wenig/AP/REX/Shutterstock)Ultimately, the PGA Tour needed more money to boost tournament purses and bonuses in order to compete with LIV Golf. The PGA Tour’s most recent television contract was signed in 2020, before LIV burst onto the scene, and the deal was believed to be worth about $700million (£560m) per year and roughly $2.7bn (£2.1bn) between 2022 through 2030, which is small change for the PIF.
One of the key highlights of this merger is the integration of LIV Golf's innovative format into the PGA Tour's existing tournaments. LIV Golf introduced a team-based approach, featuring franchise owners, live drafts, and unique scoring formats that brought something different and an unpredictability to the sport. Potentially incorporating these elements into select PGA Tour events, is one of several avenues to be explored after the announcement.
The PGA Tour is an institution boasting tradition and historical venues - but it will now possess eye-watering decadence. The landscape of golf changed forever on Tuesday as its leading rivals joined together, with the PGA Tour’s history meeting LIV Golf’s unlimited funds. Golf fans wait with baited breath tosee how this will affect their sport.