New target as PGA Tour delays deadline to close deal with PIF Saudi

The PGA Tour plans to finalize specific cooperation terms with the Saudi Public Investment Fund (PIF) in 2024 and hopes to add Strategic Sports Group (SSG) as a shareholder in this relationship.

"We set a deadline of December 31, but as things stand, the parties will continue to negotiate with each other in the new year," PGA Tour Special Envoy Jay Monahan announced in an internal letter on the last day of 2023. In this document, the top leader of the PGA Tour also said that the negotiation situation with SSG is progressing well, has reached the stage of finalizing the cooperation terms and drafting related documents.

Through that, Mr. Monahan emphasized the goal of the organization that manages the top golf arena in the US, SSG will hold a shareholder seat alongside PIF Saudi and DP World Tour in PGA Tour Enterprise.

PGA Tour special envoy Jay Monahan. Photo: AFP — PGA Tour special envoy Jay Monahan. Photo: *AFP*

"Multilateral partnerships like this help us strengthen the unity of golf, thereby continuing to increase investment and modernization of the game for the common good," shared the most powerful figure in the PGA Tour. In the latest update, the PGA Tour emphasized that it will have the right to direction and control, while PIF Saudi, SSG and DP World Tour are all non-controlling shareholders in PGA Tour Enterprise.

This enterprise is expected to be the legal entity that operates and exploits according to the preliminary agreement for the project to merge commercial activities on the PGA Tour and DP World Tour with LIV Golf League of PIF Saudi, announced on June 6 this year. But the relationship at that time was only three parties, until now is still hindered by the US government, due to concerns about national security and losing control of the domestic golf industry to the Saudi economic organization with an estimated net worth of 600 billion USD. This is the reason why the PGA Tour - PIF Saudi deal is being investigated by the Department of Justice and the Specialized Committee in the US Congress, revolving around suspicions of violating antitrust laws.

According to experts, that trouble is likely to be avoided thanks to the recent appearance of SSG with many billionaires and leading sports business groups in the US.

ESPN said SSG plans to inject more than $3 billion into PGA Tour Enterprises. This business, after adding the Saudi PIF, will have a combined capital of more than $7 billion.

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