Will PGA Tour and LIV Make It to the Altar?

With discussions ramping up this week in New York, one must wonder, is a business ’marriage' still possible or even desirable?
Will PGA Tour and LIV Make It to the Altar?
A detailed view of a PGA Tour logo prior to the AT&T Pebble Beach Pro-Am at Pebble Beach Golf Links in Pebble Beach, Calif., on Jan. 31, 2024. Christian Petersen/Getty Images
M. James Ward
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The silence was deafening. When PGA Tour Commissioner Jay Monahan addressed media at the Tour Championship earlier this month, he was famously tight-lipped on what’s happening in the talks between the PGA Tour and the Saudi-financed LIV Golf.

Monahan predictably simply said matters were ongoing with nothing to report out publicly.

Since June 2023, the two groups have been attempting to find a pathway linking them together. Is love truly in the air? Serious roadblocks still remain for both parties in this fascinating courtship.

LIV Golf commenced in June 2022 and remains operational because of the deep pockets connected to the Kingdom of Saudi Arabia. The financial arm for the effort is via the Saudi Public Investment Fund (PIF) with estimates of $700 billion in assets with holdings in such prominent companies as Nvidia, Meta, and Microsoft, according to research consultant group Global SWF.

Initially, Monahan stated the PGA Tour would not seek any relationship with LIV. He sternly warned any member of the Tour looking to compete in such events would be suspended. When the defections took place, true to his word, suspensions were implemented.

Amazingly, the commissioner flipped his position 180 degrees a year later when announcing a framework agreement with LIV’s chairman Yasir Al-Rumayyan on CNBC. The move was sudden, causing a major fissure with a number of key players who had remained loyal to the Tour even when courted to jump ship to LIV for mega dollars upfront.

What had once been a hard wall separating the two groups has now moved to a blossoming love match with an engagement providing everything short of actual hugs and kisses.

Fast forward to this week.

Meetings are being held in New York between the two parties, and that situation has not gone unnoticed. The 9/11 Justice group issued a clear denunciation this past Tuesday given the close timing to the anniversary of the attacks in New York, Washington, D.C., and Pennsylvania that took place on Sept. 11, 2001.

“Tomorrow, we commemorate the 23rd anniversary of the 9/11 tragedy, yet here we are today, in New York City, down the street from Ground Zero, and the PGA Tour and Tiger Woods are negotiating with them,” Brett Eagleson, 9/11 Justice president, said in a statement.

“As has been confirmed in the last few weeks by CBS reporting, the Saudi Arabian government played a role in the horrific attacks of 9/11. It is disgusting, unacceptable, and incredibly painful that the Tour and Woods would do this—especially now.”

Jay Monahan, Commissioner of the PGA Tour, speaks with the media prior to the Travelers Championship at TPC River Highlands in Cromwell, Connecticut, on June 19, 2024. (James Gilbert/Getty Images)
Jay Monahan, Commissioner of the PGA Tour, speaks with the media prior to the Travelers Championship at TPC River Highlands in Cromwell, Connecticut, on June 19, 2024. James Gilbert/Getty Images

The Saudi government has regularly denied such claims.

The dilemma for the PGA Tour and other key sports organizations is whether forging business relationships with countries having controversial human rights records is helpful to the image they have built. The term “sportswashing” is now front and center as countries seek to use the platform of sports to add legitimacy to their standing in the world.

Thus far, sports groups in all corners of the globe have been willing to accept money from such countries given the need to remain financially viable.

After the framework agreement was announced, the PGA Tour was able to secure the financial involvement of the Strategic Sports Group (SSG) in January 2024. The Group is a consortium of key sports club owners and has pledged $3 billion to fund the newest initiative with $1.5 billion invested immediately for PGA Tour Enterprises—a new for-profit company. This effort is structured in providing equity status to no less than 200 PGA Tour members.

PGA Tour player directors released a joint statement supporting the deal.

“We were proud to vote in unanimous support of this historic partnership between PGA Tour Enterprises and SSG,” said Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods. “It was incredibly important for us to create opportunities for the players of today and in the future to be more invested in their organization, both financially and strategically.

“This not only further strengthens the Tour from a business perspective, but it also encourages the players to be fully invested in continuing to deliver—and further enhance—the best in golf to our fans. We are looking forward to this next chapter and an even brighter future.”

The missing part of the puzzle remains with LIV and what will happen in terms of the exact nature of the relationship and what amount of dollar investments is likely to come about.

From its outset, the spectacle of LIV was in securing a number of prominent players with large sums of guaranteed money. Tournament formats feature just 54 holes of play, including no cuts for all events and a team format which has had difficulty in securing a meaningful footing for golf fans.

LIV did secure a minor television deal, but overall ratings for events were less than re-runs of “I Love Lucy.”

Pushback against LIV’s competitive formula was swift as world ranking points—the porthole for all players in securing slots into the most prestigious of events—were denied.

Commissioner and CEO of LIV Golf Greg Norman signs autographs at the first hole during day three of LIV Golf: Greenbrier at The Old White Course in White Sulphur Springs, West Virginia on Aug. 18, 2024. (Isaiah Vazquez/Getty Images)
Commissioner and CEO of LIV Golf Greg Norman signs autographs at the first hole during day three of LIV Golf: Greenbrier at The Old White Course in White Sulphur Springs, West Virginia on Aug. 18, 2024. Isaiah Vazquez/Getty Images

The inability to secure world ranking points has seen the position of key players fall noticeably and become an elevated issue of contention—especially for LIV players in their 20s not otherwise exempt to play in the four major championships.

LIV is also isolated from the broader golf community. No major companies affiliated with the PGA Tour have desired to be associated with what they are doing. For many of these companies, the connection to Saudi Arabia has prompted a range of key companies to remain on the sidelines and wait to hear what the talks produce between the two major parties.

Key questions also remain to be answered. What kind of equity stake is LIV seeking with this new PGA Tour Enterprises? Additionally, what specific role is Al-Rumayyan seeking? Initial reports suggested he would be placed as chairman of the board.

Schedules for the PGA Tour and LIV have been announced for 2025. If a “marriage” between the parties does take shape, it’s highly likely the 2026 calendar will see a major shake-up in terms of what events remain and those either ending or providing a lower status level.

The PGA Tour faces a number of clear challenges in the talks with LIV. Significant changes have already been made with the number of positions eligible for exempt status for the following season, reduced from the previous 125 to 70. That same number has also been implemented for those players eligible for the first round of the FedEx Cup Playoffs.

The PGA Tour is also faced with the dilemma of falling television ratings. With the glory days of Tiger Woods and Phil Mickelson now in the rear-view mirror, the brain trust in Ponte Vedra will have to seriously consider having a range of events that can spark viewer interest.

A “marriage” between the PGA Tour and LIV is hardly a love connection. It is a business alliance—meant to provide needed capital to the PGA Tour while bringing forward a new entity that is seeking a broader role in golf specifically and in sports generally.

Nothing is ever certain when separate entities are considering walking down the aisle and weighing the lasting impact of such words as “I do.”

The PGA Tour and LIV have gone through the fullest range of emotions through this courtship. The end game is now under the highest of scrutiny, and the stakes could not be higher for a number of people with Monahan leading the way.

A flag with the LIV Golf logo is seen prior day three of the LIV Golf Invitational-Mayakoba at El Camaleon at Mayakoba in Playa del Carmen, Mexico on Feb. 26, 2023. (Hector Vivas/Getty Images)
A flag with the LIV Golf logo is seen prior day three of the LIV Golf Invitational-Mayakoba at El Camaleon at Mayakoba in Playa del Carmen, Mexico on Feb. 26, 2023. Hector Vivas/Getty Images

The balance of power now rests with PGA Tour players who sit on the policy board. Tiger Woods has taken an active role, and his mere presence demonstrates the importance of what’s happening.

When couples walk down the aisle, there’s an anticipation for what lies ahead. A shared belief being together is better than remaining solo. The state of professional golf has been splintered since June 2022. A number of star players, Rory McIlroy among them, have stated how necessary it is to have all the key players competing against one another on a regular basis.

Make no mistake about it—the wedding admonition of “till death till do us part” is hardly hyperbole here. The outcome could well determine whether this “marriage” is a new beginning with meaningful promise or one that ends before they reach the altar and exchange vows.

M. James Ward
M. James Ward
Author
Ward is a member of the Golf Writers Association of America and Met Golf Writers Association. He has covered over 100 major championships and 12 Ryder Cup Matches. His golf acumen extends to architecture/travel, equipment, apparel, and general interest stories as well as in-depth interviews with the leading participants and influencers in the sport.