The sports world was surprised Tuesday morning when LIV Golf signed an agreement to merge with the PGA Tour and DP World Tour (European Tour) to create a new for-profit company. The name of the commercial entity has yet to be determined, and the move was reportedly not communicated with its players. As part of the agreement, all litigation against LIV Golf is being dropped and a method is being determined as to how players who received sizable bonuses to join LIV Golf can return to the PGA Tour.
LIV Golf is owned by the Saudi Arabian Public Investment Fund, and those participating in the league have received criticism because of the country’s disheartening history of human rights violations. PGA Tour Commissioner Jay Monahan will be the new chief executive of the group, while Yasir al-Rumayyan, governor of the Saudi wealth fund, will be its chairman. Moreover, the PGA Tour will be responsible for appointing the majority of the new board and garner majority voting power.
“After two years of disruption and distraction, this is a historic day for the game we all know and love,” said Monahan in a statement. “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.”
The PGA Tour sued LIV Golf for beguiling its golfers to join the tour for lucrative bonuses, and had been in the court for nearly 10 months. Now, the litigation will come to a halt, and some in the sports media industry are viewing this outcome as a settlement of sorts sans punitive and compensatory damages. Many prominent figures from around the industry took to social media to express their thoughts on the convergence, and the implications it will have for the future of the sport.
