PGA Tour Updates Golfers on PIF Talks Through Memo: Delay in Deal is Possible

According to a published report, the PGA Tour sent a memo to its players this week updating the membership on the negotiations with Saudi Arabia’s Public Investment Fund (PIF).

While the Tour says that its focus is on completing the deal that was agreed to in principle on June 6, they are interestingly hedging its bets. 

ESPN released a report based on seeing a copy of the memo. 

PGA Tour Executive Vice President Jason Gore wrote in the memo:

“We remain focused on reaching a Definitive Agreement with PIF and the DP World Tour, but not surprisingly, these negotiations have resulted in unsolicited outreach and proposals from a number of other interested investors. All of this activity reinforces the Tour’s strong position and our potential for growth.”

ESPN reported that the Saudi Arabian contingent is aiming for more control in the joint venture, which PGA Tour commissioner Jay Monahan said would remain under his organization’s power. 

The report went on to say that the PIF is also looking to incorporate a team golf concept in the new company, similar to what it uses in LIV Golf. 

ESPN quoted a source within the negotiations as saying:

“I don’t think it will ever happen. I don’t think the Department of Justice would ever approve a merger with the PGA Tour. And I don’t think the Saudis are pleased with how little influence they’d get in a merged entity. For those reasons, I don’t think the merger is ever going to happen.”

That source said if the negotiations fail, the PGA Tour would try and find private investors to put forth a combined total of $2 billion, which is what the PIF is expected to contribute. 

The deadline looms for the PGA Tour, DP World Tour, and Saudi PIF to finalize a deal that would invest billions into golf.

Despite alternative interest from U.S. investors, the PIF’s leadership continues to show signs of optimism for a deal.

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— Front Office Sports (@FOS) October 5, 2023

The framework agreement expires on Dec. 31, but it has been reported that the deadline could be extended if the parties are close to a deal.

Cover Image via Sky Sports