PGA Tour, Saudi Arabia's Public Investment Fund set to extend negotiation deadline to April, per report
The PGA Tour and LIV Golf's financial backers will continue deal talks into the new year
Extension of Negotiation Deadline Expected
The PGA Tour and Saudi Arabia's Public Investment Fund are expected to announce an extension to their negotiation deadline. The goal is to combine commercial operations under a new for-profit entity called PGA Tour Enterprises. The original deadline, set for the end of 2023, has been delayed due to sluggish discussions and lack of progress.
Hopes are high that the two parties will reach a final deal before the 2024 Masters in April.
Reasons for Negotiation Delays
Negotiations have stalled for various reasons, one of which is the entry of private equity money. This made the Saudi PIF governor feel that LIV Golf was no longer the main focal point of the discussions. In response, the league signed Jon Rahm, world No. 3, in December as a negotiation tactic to encourage the PGA Tour to return to the table.
The original framework included a non-solicitation agreement to prevent LIV Golf from recruiting PGA Tour players during negotiations. However, this clause was removed following antitrust concerns from the United States Department of Justice. The removal has opened the possibility of player movement between now and April.
Recent Developments and Meetings
December has been unusually busy in the world of golf. The PGA Tour policy board informed its members about ongoing negotiations with Strategic Sports Group, a collection of U.S. sports team investors, and the Public Investment Fund. Other potential deals were also considered from companies like Endeavor and Acorn Growth Company.
PGA Tour Commissioner Jay Monahan and Al-Rumayyan, the governor of Saudi PIF, had a meeting scheduled before Christmas. However, the details of their encounter have not been disclosed yet.
