PGA LIV merger: This is the official agreement

PGA Liv Merger: The announcement of the cooperation between the PGA Tour, the Saudi Public Investment Fund and the DP World Tour shook the golfing world almost three weeks ago. Now the official framework agreement signed by the three parties has been leaked, which was also sent to the US Senate for explanation, which is investigating the case of the Saudi investment in the American institution PGA Tour.

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PGA Tour , PIF, DP World Tour – Merger with good intentions

There are few surprises in the ten-point framework agreement, rather it confirms what was previously known about the cooperation between the three parties. However, it also makes it clear that so far hardly any details about the future of golf are known because there are no more details. One of the key phrases in the agreement is “with good intentions”. To sum up the five sides, the Tours and PIF decide to meet in good faith to settle the disputes and carve out a mutually beneficial path for the future of golf.

The most important points on how this is to be achieved are summarized below:

NewCo – a joint venture controlled by the PGA Tour with money from the PIF

The partnership in a joint company between pga liv merger, previously called “NewCo”, should be decisive for the goal. The golf investments of the three parties are to be brought together under this roof. While the PGA Tour retains control of the sporting side, primarily PGA Tour contributing entities, PIF will provide capital to the LIV Tour. In addition, PIF is to become the main sponsor of the tours and take over the sponsorship of a top-class tournament. As a safeguard to prevent a Saudi takeover, the following is also stated: “The PGA Tour will at all times retain a controlling voting interest in NewCo and PIF will continue to hold a non-controlling voting interest, notwithstanding any additional investment by PIF or the exercise of its right of first refusal.”

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Settlement of Litigation

One of the most important issues for the PGA Tour is the settlement of the ongoing legal dispute with LIV. These will be terminated with immediate effect and cannot be resumed even if the framework agreement expires without further cooperation being clarified.

The future of LIV is open

There are no concrete statements about the future of the LIV Tour. This is where the good intentions come into play again, because the three parties want to use the data to check the potential of the LIV Tour in particular or Team Golf in general and decide how best to use this alongside the PGA and DP World Tour tournaments co -exist or be integrated into it. All three parties also want to make “the best possible effort” to give the LIV Golf tournaments world ranking points.

Until further agreements are made, however, the parties are prohibited from poaching players from the other tours. A fair process will also be developed to allow LIV players to return to the PGA and DP World Tour after the 2023 season. However, these players must be prepared for possible disciplinary measures to be determined.

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PGA Tour board must approve agreement

But, Whether the cooperation will even go beyond the framework agreement is still up in the air. Only the points on the settlement of the legal disputes and on the announcement of the cooperation and the further procedure are named as mandatory in the agreement. The framework agreement is only valid until either more far-reaching, final agreements are signed or until January 1, 2024. If there are no further agreements by then, the framework agreement will also be canceled and “the parties can resume their business at their own discretion in the condition operate that existed prior to the agreement.”

“Management, with the support of our player directors, has now entered a new phase of negotiations to determine if the tour can reach a final agreement that is in the best interests of our players, fans, sponsors, partners and the game at large,” it said in a statement Monday’s PGA Tour.

“Should future negotiations result in a proposed agreement, it would need to be approved by the Tour’s board of directors, which includes player directors.” It depends on this approval whether the cooperation between the three sides will continue. And the outcome of the Justice Department’s investigation could also have an impact on the pga liv merger agreement.

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