Jay Monahan sent a statement to the members of the PGA Tour last night just before the bells in Spain to update the situation of the great agreement with the Public Investment Fund of Saudi Arabia. Just half an hour before the first deadline they set in June to reach a solution to the golf split, the American circuit updated how the situation is without offering any surprises and few conclusions. That is, nothing that was not already known.
In the aforementioned statement, the extension of the deadline to continue negotiating with the PIF is announced, without offering a new definitive deadline, and it is confirmed, as was already known, that the agreement with the American investors, grouped around the acronym SSG, is in its final phase. That is, nothing new. Really, the statement responds more to the commitment acquired by the circuit to offer more transparency during the negotiations, although without getting too caught up.
After December 31, we still do not know how world golf will end up, what they are really negotiating, in what situation the PGA Tour, DP World Tour and LIV Golf will be left and how they are going to act with the golfers who accepted the Saudi money and made the jump to the Arab league. The only thing that is contributed is that an agreement that nobody knows is still being negotiated to form the new PGA Tour Enterprise company and that they are optimistic about the possibility of reaching an agreement between all parties.
The only interesting nuance is that Monahan explains in the letter that both the PIF and the SSG would become minority partners of the emerging company, so the idea that the PGA Tour will continue to maintain control is maintained. At least, as of today.
Here is the full statement:
I wanted to provide an update on our negotiations with Strategic Sports Group (SSG), the Public Investment Fund (PIF) and DP World Tour.
As you know, the Board unanimously directed management to pursue exclusive negotiations with SSG. I am pleased to report that we have made meaningful progress and have provided SSG with the due diligence information they requested. As we move forward in our discussions, we are focused on the finalization of terms and drafts of necessary documents.
We also continue our active and productive conversations with PIF and the DP World Tour. While we had initially set a deadline of December 31, 2023, to reach an agreement, we are working to extend our negotiations into next year based on the progress we have made to date.
Our goal for 2024 is to reach agreements with SSG, PIF and the DP World Tour, bringing them on board as minority co-investors in PGA TOUR Enterprises. These partnerships will allow us to unify, innovate and invest in the game for the benefit of players, fans and sponsors.
As we look forward to the new year, I hope you have enjoyed a relaxing holiday season surrounded by family and friends.
Sincerely, Jay
