(CelebrityAccess) — In a surprising turn of events, the PGA Tour and DP World Tour, the world’s top professional golf organizations, have revealed their plans to merge with their primary rival, LIV Golf, which is backed by Saudi Arabia sovereign wealth fund. The move aims to establish a unified golf tour and shake up the industry.
The newly formed organization, yet to be named, will chart a fresh course for professional golf, focusing on expanding the sport’s reach and engaging fans worldwide. This includes initiatives to develop and enhance team golf, providing an exciting and collaborative experience for players and spectators alike.
To facilitate the growth of the unified tour, Saudi Arabia’s government-backed Public Investment Fund (PIF) will make a capital investment in the new entity. Initially, PIF will act as the exclusive investor, partnering with the PGA Tour, LIV Golf, and the DP World Tour. They will also have the exclusive right to further invest in the venture, including a right of first refusal on any capital injections into the PGA Tour, LIV Golf, and DP World Tour.
A Board of Directors will oversee the new venture, with the PGA Tour appointing a majority of the board members and holding a majority voting interest in the combined entity. The aim is to ensure that the tour operates effectively while leveraging the strengths and experience of all involved parties.
Furthermore, the existing PGA TOUR Inc. will retain its status as a 501(c)(6) tax-exempt organization and continue to oversee the administration of events contributed by the PGA Tour. This includes event sanctioning, rule administration, and other critical responsibilities. Jay Monahan will retain his position as Commissioner, and Ed Herlihy will continue as PGA TOUR Policy Board Chairman. PIF’s Governor Yasir Al-Rumayyan will also join the PGA TOUR Policy Board, ensuring diverse perspectives and insights.
Similarly, the DP World Tour and LIV Golf will maintain administrative oversight of events within their respective tours. This collaborative approach aims to unify operations while respecting the unique attributes of each organization.
The commercial entity’s Board of Directors will be chaired by Al-Rumayyan, with Monahan assuming the role of Chief Executive Officer. Additionally, an Executive Committee comprising Al-Rumayyan, Monahan, Herlihy, and PGA TOUR Policy Board member Jimmy Dunne will be formed. Further appointments to the board will be announced in due course.
As part of the agreement, all ongoing litigation between the golf organizations will be settled amicably. Notably, high-profile golf figures such as Phil Mickelson, who previously moved to LIV Golf, will be permitted to rejoin the PGA Tour following the 2023 season.
