New York, Jun 6 (IANS): Ending two years of disruption and distraction in the golf world, the PGA Tour, DP World Tour and the Public Investment Fund (PIF),who run rival series of competitions, on Tuesday announced a landmark agreement to unify the game on a global basis.
This agreement will end the split in the golf world and allow players to participate in different competitions on the three tours without the threat of sanctions by the other bodies.
The three parties have signed an agreement that combines PIF's golf-related commercial businesses and rights (including LIV Golf) with the commercial businesses and rights of the PGA Tour and DP World Tour into a new, collectively owned, for-profit entity to ensure that all stakeholders benefit from a model that delivers maximum excitement and competition among the game's best players, the three stakeholders announced in a statement here on Tuesday.
The new entity (name yet to be decided) will implement a plan to grow these combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already underway. With LIV Golf in the midst of its second, ground-breaking season, the PGA Tour, DP World Tour and PIF will work together to best feature and grow team golf going forward.
To accelerate that growth, PIF will make a capital investment into the new entity to facilitate its growth and success.
Tuesday's announcement will be followed by a mutually-agreed end to all pending litigation between the participating parties.
"Further, the three organisations will work cooperatively, and in good faith, to establish a fair and objective process for players who desire to re-apply for membership with the PGA Tour or the DP World Tour following the completion of the 2023 season," the release said.
They will also work for determining fair criteria and terms of re-admission, consistent with each Tour's policies.
"After two years of disruption and distraction, this is a historic day for the game we all know and love," PGA Tour Commissioner Jay Monahan was quoted as saying in the release.
"This transformational partnership recognizes the immeasurable strength of the PGA TOUR's history, legacy and pro-competitive model and combines with it the DP World Tour and LIV - including the team golf concept - to create an organization that will benefit golf's players, commercial and charitable partners and fans. Going forward, fans can be confident that we will, collectively, deliver on the promise we've always made - to promote competition of the best in professional golf and that we are committed to securing and driving the game's future," he said.
"We are pleased to move forward, in step with LIV and PIF's world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his vision and collaborative and forward-thinking approach that is not just a solution to the rift in our game, but also a commitment to taking it to new heights. This will engender a new era in global golf, for the better."
"Today is a very exciting day for this special game and the people it touches around the world," said PIF Governor Yasir Al-Rumayyan.
Under the terms of the agreement, the Board of Directors of the new entity will oversee and direct all the new entity's golf-related commercial operations, businesses and investments.
The new entity will work to ensure a cohesive schedule of events that will be exciting for fans, sponsors and all stakeholders. PIF will initially be the exclusive investor in the new entity, alongside the PGA TOUR, LIV Golf and the DP World Tour. Going forward, PIF will have the exclusive right to further invest in the new entity, including a right of first refusal on any capital that may be invested in the new entity, including into the PGA Tour, LIV Golf and DP World Tour. The PGA Tour will appoint a majority of the Board and hold a majority voting interest in the combined entity.
Separately, PGA TOUR Inc. will remain in place as a 501(c)(6) tax-exempt organisation and retains administrative oversight of events for those assets contributed by the PGA Tour, including the sanctioning of events, the administration of the competition and rules, as well as all other "inside the ropes" responsibilities, with Jay Monahan as Commissioner and Ed Herlihy as PGA Tour Policy Board Chairman.
PIF's Governor Yasir Al-Rumayyan will join the PGA Tour Policy Board. The DP World Tour and LIV Golf will retain similar administrative oversight of events on their respective Tours.
The Board of Directors of the new commercial entity will include Al-Rumayyan as Chairman and Monahan as Chief Executive Officer; the new entity's Board will also include an Executive Committee comprising Al-Rumayyan, Monahan, Herlihy and PGA Tour Policy Board member Jimmy Dunne. The full Board will be announced at a later date, and it is anticipated that all three founding members will have representation.
All parties will work in the months to come to finalise the terms of the agreement, with details to be announced in due course.