June 28, (THEWILL) – A review of a copy of the merger agreement framework between the PGA Tour and Saudi-backed LIV Golf, has indicated that there will be a for-profit subsidiary under the U.S. golfing body’s purview to oversee commercial investments and assets across all tours.
The framework ensures that the PGA Tour retains a permanent controlling interest in the subsidiary’s board of directors, irrespective of the Saudi investment. The merger agreement, which brings together the PGA Tour, DP World Tour, and the Saudi-backed LIV circuit, aims to create a unified commercial entity and put an end to the ongoing litigation between the two parties.
The LIV Golf series, supported by the Saudi Arabia Public Investment Fund, faced a barrage of criticism alleging it serves as a means for the country to enhance its reputation amid scrutiny of its human rights record. Under the newly formed entity, named NewCo in the framework, the Saudi Arabia Public Investment Fund Governor, Yasir Al-Rumayyan, will assume the role of chairman, while PGA Tour Commissioner Jay Monahan will serve as the CEO.
However, the framework is expected to draw attention at a U.S. Senate panel on July 11, where Monahan, Al-Rumayyan, and LIV Golf CEO Greg Norman have been invited to testify. As THEWILL reported, the proposed merger deal has encountered significant opposition in Washington, with U.S. Senator Richard Blumenthal concerned over the involvement of the Saudi government in the agreement and the potential risks associated with a foreign government entity assuming control over the sport.
Blumenthal, who chairs the Senate Permanent Subcommittee on Investigations (PSI), has requested communication and records from both the PGA and LIV regarding their planned merger. He seeks clarification on the nonprofit group’s negotiation process with LIV Golf and insights into the structure and operations of the newly formed entity, including measures to safeguard the PGA Tour’s tax-exempt status.
About the Author
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
