War and battle metaphors are often overused in sport but came as close to being reality in Golf over the past two years as the established order of the PGA and DP World Tours fought off the advances of the Saudi Arabian Public Investment Fund backed LIV Golf.
Friendships were torn asunder, millionaires became many times a factor of that and golf stepped into the spotlight like it has rarely if ever been since the heyday of Tiger Woods.
Today came the news that peace had broken out, accomodations had been made and that “a landmark agreement to unify the game of golf, on a global basis” had been signed.
“The PGA Tour, the DP World Tour and the Public Investment Fund have signed an agreement that combines PIF’s golf-related commercial businesses and rights (including LIV Golf) with the commercial businesses and rights of the PGA TOUR and DP World Tour into a new, collectively owned, for-profit entity to ensure that all stakeholders benefit from a model that delivers maximum excitement and competition among the game’s best players,” said the statement that brought the curtain down on the dispute between the parties that had raged across the fairways.
“In addition, PIF will make a capital investment into the new entity to facilitate its growth and success. The new entity (name TBD) will implement a plan to grow these combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already underway. With LIV Golf in the midst of its second, groundbreaking season, the PGA Tour, DP World Tour and PIF will work together to best feature and grow team golf going forward.”
There will be an end to all the litigation going through the courts around the world, and discussions on how to re-admit players that had been ousted or had resigned from the traditional Tours.
Players will likely once again come into the reckoning for places on the respective Ryder Cup teams and it would not be a huge surprise to find that tournament itself played on one of the World Class golf facilities being created in Saudi Arabia in years to come.
“After two years of disruption and distraction, this is a historic day for the game we all know and love,” said PGA Tour Commissioner Jay Monahan, who will take up the role of CEO of the new body.
“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.”
“We are pleased to move forward, in step with LIV and PIF’s world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his vision and collaborative and forward-thinking approach that is not just a solution to the rift in our game, but also a commitment to taking it to new heights. This will engender a new era in global golf, for the better.”
“Today is a very exciting day for this special game and the people it touches around the world,” said Al-Rumayyan who will himself chair the new body.
“We are proud to partner with the PGA Tour to leverage PIF’s unparalleled success and track record of unlocking value and bringing innovation and global best practices to business and sectors worldwide. We are committed to unifying, promoting and growing the game of golf around the world and offering the highest-quality product to the many millions of long-time fans globally, while cultivating new fans.”
“There is no question that the LIV model has been positively transformative for golf. We believe there are opportunities for the game to evolve while also maintaining its storied history and tradition. This partnership represents the best opportunity to extend and increase the impact of golf for all. We look forward to collaborating with Jay and Keith to bring the best version of the game to communities around the world.”
Under the terms of the agreement, PIF will initially be the exclusive investor in the new entity, alongside the PGA TOUR, LIV Golf and the DP World Tour.
Going forward, PIF will have the exclusive right to further invest in the new entity, including a right of first refusal on any capital that may be invested in the new entity, including into the PGA TOUR, LIV Golf and DP World Tour.
The PGA TOUR will appoint a majority of the Board and hold a majority voting interest in the combined entity.
“This is a momentous day,” added Keith Pelley, CEO of the DP World Tour.
“We are delighted to be able to not only reignite our relationship with PIF, but also to have the opportunity to build on our current Strategic Alliance partnership with the PGA TOUR.”
“Together we will be stronger than ever and well positioned to continue to bring the game to all corners of the globe. To partner in this new entity and influence the growth of the game for all our DP World Tour members is energizing and exciting.”
Sport for Business Perspective
Money talks and while the friendly language of today’s statements were far from the sentiments expressed at the height of the hostilities, this was an inevitable conclusion.
LIV Golf had failed to secure any substantial media rights and the tournaments had largely failed to excite the golfing public but they were never going to go away and rather than keep on firing shots at each other, the agreement signed today will se them act in concert.
Sport is good at parking the events which take place on the pitch, and coming together afterwards. This is a continuation of that. It will mean new formats, a certain disruption to the way things have traditionally been but again, that is something sport does well.No sign or sound of Greg Norman in the announcement today, that may have been one small concession on the part of the Saudi’s, but they have won this battle for the sport.
It is likely that when the dust settles, that they will not be the only ones and that the only losers turn out to be the legal firms that might have hoped for a longer drawn out arm wrestle.
