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PGA Tour agrees to merge with Saudi-backed LIV Golf

PGA Tour agrees to merge with Saudi-backed LIV Golf
FORECAST IN JUST A FEW MINUTES. GLENN, THANK YOU. VERY SURPRISING ANNOUNCEMENT FROM THE WORLD OF PROFESSIONAL MEN’S GOLF. THE PGA REVEALS IT PLANS TO MERGE WITH LIV GOLF, WHICH IS BACKED BY SAUDI ARABIA, FOR THAT ORGANIZATION OFFICIALLY LAUNCHED JUST LAST YEAR WITH PARTICIPATING PLAYERS OFFERED HUGE GUARANTEES TO JOIN. WERE THEN QUICKLY BARRED FROM COMPETING IN PGA TOUR EVENTS. THIS NEW AGREEMENT WILL END THE MULTI-BILLION DOLLAR FEUD BETWEEN THOSE COMPETING ORGANIZATIONS SPORTS DIRECTOR SHAYNE WRIGHT JOINS US NOW. AND SHANE, THIS IS STORING STIRRING UP MORE CONTROVERSY IN THE GOLF COMMUNITY. YEAH, IT WAS BIG NEWS TODAY. THE MERGER ALSO INVOLVING THE EUROPEAN TOUR AS WELL. TODAY’S ANNOUNCEMENT CAME AS A TOTAL SHOCK TO MOST, IF NOT ALL, OF THE PRO GOLFERS, BOTH ON THE PGA TOUR SIDE AND THE LIV SIDE AS WELL. WHAT’S STILL UNCLEAR HERE IS WHY THIS IS HAPPENING AND WHY IT’S HAPPENING NOW. THE NEWS BROKE JUST BEFORE 10:00 THIS MORNING THAT THE PGA TOUR, THE DP WORLD TOUR, FORMERLY KNOWN AS THE EUROPEAN TOUR AND LIV WOULD MERGE. LIV GOLF HAS BEEN LOCKED IN A VERY HEATED RIVALRY OVER THE TOP GOLFERS IN THE WORLD. PLAYERS LIKE BROOKS KOEPKA AND PHIL MICKELSON TOOK THE GUARANTEED MONEY FROM LIV AND WERE IMMEDIATELY BANNED FROM PLAYING AGAIN ON THE PGA TOUR TODAY, SOME PGA TOUR GOLFERS TAKING PART IN THIS WEEK’S TOURNAMENT SPOKE WITH REPORTERS HERE. WHAT THEY HAD TO SAY. CAN YOU DO CERTAIN THINGS AS A PLAYER TO STAY AWAY FROM IT? SURE. BUT AT SOME POINT, YOU KNOW, LIKE I SAID, I’VE DEDICATED MY ENTIRE LIFE TO BEING AT GOLF’S HIGHEST LEVEL. I’M NOT ABOUT TO STOP PLAYING GOLF BECAUSE THE ENTITY THAT I PLAY FOR HAS JOINED FORCES WITH THE SAUDI GOVERNMENT. SAUDI PUBLIC INVESTMENT FUND WILL MAKE AN INVESTMENT INTO THE NEW MERGED COMPANY. THE NEW COMPANY DOESN’T HAVE A NAME YET. IT APPEARS THE CHANGES WILL START FOLLOWING THE 2023 SEASON. SO A LOT MORE QUESTIONS TO GET ANSWERED HERE. WHEN EVERYTHING GETS CHANGED AND EVERYTHING GETS MERGED UP. OKAY, WE’RE CALLING IT A SURPRISE. IT’S NOT A SURPRISE. IT’S A SHOCK. BUT THE BIG THING IS HERE, THE PLAYERS LOOK, THEY WERE CAUGHT OFF GUARD. YEAH. A LOT OF PLAYERS ARE TAKING TO TWITTER, JUST VOICING THEIR CONCERNS, VOICING THAT THEY WERE JUST SURPRISED. A LOT OF THEM JUST DIDN’T KNOW. MACKENZIE HUGHES TWEETING NOTHING LIKE FINDING OUT THROUGH TWITTER THAT WE’RE MERGING WITH A TOUR THAT WE SAID WE’D NEVER DO BUSINESS WITH. I’M ASSUMING MICHAEL KIM, HE WROTE VERY CURIOUS HOW MANY PEOPLE KNEW THIS DEAL WAS HAPPENING? ABOUT 5 TO 7 PEOPLE, MAYBE A PLAYER RUN ORGANIZATION, RIGHT, WITH A QUESTION MARK ON THE OTHER SIDE, PHIL MICKELSON, A MAN OF VERY FEW WORDS TODAY, ONE OF THE FACES OF LIV GOLF, SIMPLY TWEETING, AWESOME DAY TODAY. SO A LOT OF TALK GOING TO BE HAPPENING WITH THIS OVER THE NEXT COUPLE OF WEEKS HERE. AT LEAST SOMEONE’S HAPPY. YEAH, WELL, PEOPLE WHO WANT MONEY, THEY’RE HAPPY. YES. THERE’S A LOT OF MONEY BEING THROWN AROUND HERE. YES, THERE IS. THAT MUCH WE CAN SAY. ALL RIGHT, SHANE, THANK YOU. CHECK BACK WITH YOU IN A LITTLE BIT. NOW STAY WITH WPBF 25 NEWS FOR THE LATEST DEVELOPMENTS AS THE MERGER MOVES FORWARD. WE’RE GOING TO HAVE MUCH MORE COMING YOUR WAY AT 6:00. SHANE WILL HAVE THAT. YOU CAN FIND OUR FULL COVERAGE ON O
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PGA Tour agrees to merge with Saudi-backed LIV Golf
The PGA Tour abruptly ended its expensive fight with Saudi Arabia’s golf venture and now is joining forces with it, making a stunning announcement Tuesday of a merger that creates a commercial operation with the Public Investment Fund and the European tour.As part of the deal, the sides immediately are dropping all lawsuits involving LIV Golf.From the golf side, still to be determined is how players like Brooks Koepka and Dustin Johnson can rejoin the PGA Tour after defecting last year for signing bonuses reported to be in the $150 million range.From the commercial side, the governor of Saudi Arabia's sovereign wealth fund joins the PGA Tour board of directors and leads the new business venture as chairman, though the PGA Tour will have a majority stake.News of the deal came as a surprise to many watchers of the lawsuits and Saudi Arabia’s inroads into U.S. politics, sports and culture.“This is a huge development and obviously upends a world of golf, which has been perhaps more tradition-bound in the past,” said Kristian Ulrichsen, a Middle East fellow at Houston’s Baker Institute.Under Crown Prince Mohammed bin Salman, Saudi Arabia’s sovereign wealth fund has made a point of seeking out investments, like LIV, where it could shake up existing industries, Ulrichsen said.“That’s sort of one of their mantras, is to try to be disruptive and to take on the status quo,” he said. “And in this case, they seem to have succeeded.”The announcement comes a year after LIV Golf began. PGA Tour Commissioner Jay Monahan was at the Canadian Open that week and said pointedly about any player who joined LIV or was thinking about it: “Have you ever had to apologize for being a member of the PGA Tour?”Now they are partners, giving Saudi Arabia a commercial voice in golf’s premier organization.“I recognize everything I’ve said in the past. I recognize people will call me a hypocrite," Monahan said in a conference call Tuesday evening. "Any time I’ve said anything, I’ve said it with the information I had, and I said it with someone trying to compete with our tour and our players.”Most PGA Tour players were bewildered by the shocking turnaround. It didn't help that a news outlet broke the embargoed announcement before Monahan could send a memo to the players. Most learned of the development on social media.“I love finding out about morning news on Twitter,” two-time major champion Collin Morikawa tweeted.Many were not happy. Wesley Bryan tweeted, “I feel betrayed, and will not ... be able to trust anyone within the corporate structure of the PGA Tour for a very long time.”Byeong Hun An added on Twitter: “I’m guessing the liv teams were struggling to get sponsors and pga tour couldn’t turn down the money. Win-win for both tours but it’s a big lose for who defended the tour for last two years.”“They were going down their path, we were going down ours, and after a lot of introspection you realize all this tension in the game is not a good thing,” Monahan said in a phone interview with The Associated Press.“We have a responsibility to our tour and to the game, and we felt like the time was right to have that conversation.”Monahan held a player meeting at the Canadian Open, though most top players are not there. He described the meeting as “intense, certainly heated.”And while this likely will only lead to greater riches in golf, there still was explaining to do on why the tour would merge with a group that tried to take away some of the PGA Tour's best players and was seen as the latest example of “sportswashing.”The deal was in the works for the last seven weeks, when Monahan first met with Yasir Al-Rumayyan, governor of the Public Investment Fund. Players typically approve changes to the schedule and other competition matters. On this one, they were left out.“No one had word of this,” Monahan said. “Our players expect us to operate in the best interests of the tour.”Instead, he cited guidance from corporate members of the PGA Tour board.Still, Monahan has his toughest work ahead of him.He sought loyalty from his players against a league accused of taking part in sportswashing, an attempt by Saudi Arabia to shift focus away from its human rights abuses, such as the 2018 killing of journalist Jamal Khashoggi.Now the very group that posed such a threat is the commercial partner of the PGA Tour and European tour.“The divisiveness is now over, and two years of disruption and distractions ... is over and now we can concentrate on building our respective tours,” said Keith Pelley, CEO of the European tour. “And we are building it with PIF, who is clearly committed to the game.”Along the way, PGA Tour players also got rich. The tour raised prize money at elite events to $20 million, the same purse for LIV’s individual competition. The 2024 schedule has been reshaped for roughly 16 tournaments like that.“In the short term, I expect a lot of questions and criticism,” Monahan said. “In the long run, players who stayed with the PGA Tour will see they benefited in many ways.”The agreement combines the Public Investment Fund's golf-related commercial businesses and rights — including LIV Golf — with those of the PGA and European tours. The new entity has not been named.Al-Rumayyan will join the board of the PGA Tour, which continues to operates its tournaments. The PIF will invest in the commercial venture.“From the very beginning, the whole initiative was how to grow the game of golf,” Al-Rumayyan said. “And I think what was achieved today was exactly that.”Augusta National and the Royal & Ancient welcomed the news because it ends a bitter feud. Augusta National said the deal “represents a positive development in bringing harmony to men's professional golf.” R&A CEO Martin Slumbers said it would help golf “move forward in a collaborative, constructive and innovative fashion.”As for the new role of Greg Norman, Al-Rumayyan said only that Norman is LIV Golf's commissioner and details of his future role would be announced in the coming weeks.Monahan's memo to players indicated a strong Saudi Arabian presence. He said PIF would make a financial investment to become a “premier corporate sponsor” of the PGA Tour, the European tour and other international tours.The PIF initially will be the exclusive investor in the new entity and will have the exclusive right to further invest, including a right of first refusal on any capital that may be invested.Al-Rumayyan has been spotted wearing a “MAGA” hat during LIV events at courses owned by former President Donald Trump.Trump predicted last July that a merger was inevitable and said anyone not signing with the Saudi league would be losing out. He weighed in Tuesday and called it a “glamorous deal for the wonderful world of golf.”Monahan said the merger came together the last seven weeks, with PGA Tour board member Jimmy Dunne responsible for bringing together Monahan and Al-Rumayyan. Dunne and Ed Herlihy, chairman of the PGA Tour's board, will serve on the board of the commercial venture.Phil Mickelson and Bryson DeChambeau were among 11 players who filed an antitrust lawsuit against the PGA Tour last August. LIV joined as plaintiffs, and the PGA Tour countersued.The concern for PIF was whether its leaders could be deposed, which Saudi Arabia wanted to avoid. Being open to depositions would leave the kingdom's leaders more vulnerable to legal action, including lawsuits demanding they reveal business deals in the United States.A federal judge had ruled the PIF could not claim immunity from the Foreign Service Immunity Act because of its commercial work with LIV Golf in the U.S.The PIF appealed the ruling to the Ninth U.S. Circuit Court of Appeals, which was likely to extend the lawsuit deep into 2024 if not longer.___Associated Press writer Ellen Knickmeyer in Washington and AP Sports Writer Steve Douglas in Stockholm contributed to this report.

The PGA Tour abruptly ended its expensive fight with Saudi Arabia’s golf venture and now is joining forces with it, making a stunning announcement Tuesday of a merger that creates a commercial operation with the Public Investment Fund and the European tour.

As part of the deal, the sides immediately are dropping all lawsuits involving LIV Golf.

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From the golf side, still to be determined is how players like Brooks Koepka and Dustin Johnson can rejoin the PGA Tour after defecting last year for signing bonuses reported to be in the $150 million range.

From the commercial side, the governor of Saudi Arabia's sovereign wealth fund joins the PGA Tour board of directors and leads the new business venture as chairman, though the PGA Tour will have a majority stake.

News of the deal came as a surprise to many watchers of the lawsuits and Saudi Arabia’s inroads into U.S. politics, sports and culture.

“This is a huge development and obviously upends a world of golf, which has been perhaps more tradition-bound in the past,” said Kristian Ulrichsen, a Middle East fellow at Houston’s Baker Institute.

Under Crown Prince Mohammed bin Salman, Saudi Arabia’s sovereign wealth fund has made a point of seeking out investments, like LIV, where it could shake up existing industries, Ulrichsen said.

“That’s sort of one of their mantras, is to try to be disruptive and to take on the status quo,” he said. “And in this case, they seem to have succeeded.”

The announcement comes a year after LIV Golf began. PGA Tour Commissioner Jay Monahan was at the Canadian Open that week and said pointedly about any player who joined LIV or was thinking about it: “Have you ever had to apologize for being a member of the PGA Tour?”

Now they are partners, giving Saudi Arabia a commercial voice in golf’s premier organization.

“I recognize everything I’ve said in the past. I recognize people will call me a hypocrite," Monahan said in a conference call Tuesday evening. "Any time I’ve said anything, I’ve said it with the information I had, and I said it with someone trying to compete with our tour and our players.”

Most PGA Tour players were bewildered by the shocking turnaround. It didn't help that a news outlet broke the embargoed announcement before Monahan could send a memo to the players. Most learned of the development on social media.

“I love finding out about morning news on Twitter,” two-time major champion Collin Morikawa tweeted.

Many were not happy. Wesley Bryan tweeted, “I feel betrayed, and will not ... be able to trust anyone within the corporate structure of the PGA Tour for a very long time.”

Byeong Hun An added on Twitter: “I’m guessing the liv teams were struggling to get sponsors and pga tour couldn’t turn down the money. Win-win for both tours but it’s a big lose for who defended the tour for last two years.”

“They were going down their path, we were going down ours, and after a lot of introspection you realize all this tension in the game is not a good thing,” Monahan said in a phone interview with The Associated Press.

“We have a responsibility to our tour and to the game, and we felt like the time was right to have that conversation.”

Monahan held a player meeting at the Canadian Open, though most top players are not there. He described the meeting as “intense, certainly heated.”

And while this likely will only lead to greater riches in golf, there still was explaining to do on why the tour would merge with a group that tried to take away some of the PGA Tour's best players and was seen as the latest example of “sportswashing.”

The deal was in the works for the last seven weeks, when Monahan first met with Yasir Al-Rumayyan, governor of the Public Investment Fund. Players typically approve changes to the schedule and other competition matters. On this one, they were left out.

“No one had word of this,” Monahan said. “Our players expect us to operate in the best interests of the tour.”

Instead, he cited guidance from corporate members of the PGA Tour board.

Still, Monahan has his toughest work ahead of him.

He sought loyalty from his players against a league accused of taking part in sportswashing, an attempt by Saudi Arabia to shift focus away from its human rights abuses, such as the 2018 killing of journalist Jamal Khashoggi.

Now the very group that posed such a threat is the commercial partner of the PGA Tour and European tour.

“The divisiveness is now over, and two years of disruption and distractions ... is over and now we can concentrate on building our respective tours,” said Keith Pelley, CEO of the European tour. “And we are building it with PIF, who is clearly committed to the game.”

Along the way, PGA Tour players also got rich. The tour raised prize money at elite events to $20 million, the same purse for LIV’s individual competition. The 2024 schedule has been reshaped for roughly 16 tournaments like that.

“In the short term, I expect a lot of questions and criticism,” Monahan said. “In the long run, players who stayed with the PGA Tour will see they benefited in many ways.”

The agreement combines the Public Investment Fund's golf-related commercial businesses and rights — including LIV Golf — with those of the PGA and European tours. The new entity has not been named.

Al-Rumayyan will join the board of the PGA Tour, which continues to operates its tournaments. The PIF will invest in the commercial venture.

“From the very beginning, the whole initiative was how to grow the game of golf,” Al-Rumayyan said. “And I think what was achieved today was exactly that.”

Augusta National and the Royal & Ancient welcomed the news because it ends a bitter feud. Augusta National said the deal “represents a positive development in bringing harmony to men's professional golf.” R&A CEO Martin Slumbers said it would help golf “move forward in a collaborative, constructive and innovative fashion.”

As for the new role of Greg Norman, Al-Rumayyan said only that Norman is LIV Golf's commissioner and details of his future role would be announced in the coming weeks.

Monahan's memo to players indicated a strong Saudi Arabian presence. He said PIF would make a financial investment to become a “premier corporate sponsor” of the PGA Tour, the European tour and other international tours.

The PIF initially will be the exclusive investor in the new entity and will have the exclusive right to further invest, including a right of first refusal on any capital that may be invested.

Al-Rumayyan has been spotted wearing a “MAGA” hat during LIV events at courses owned by former President Donald Trump.

Trump predicted last July that a merger was inevitable and said anyone not signing with the Saudi league would be losing out. He weighed in Tuesday and called it a “glamorous deal for the wonderful world of golf.”

Monahan said the merger came together the last seven weeks, with PGA Tour board member Jimmy Dunne responsible for bringing together Monahan and Al-Rumayyan. Dunne and Ed Herlihy, chairman of the PGA Tour's board, will serve on the board of the commercial venture.

Phil Mickelson and Bryson DeChambeau were among 11 players who filed an antitrust lawsuit against the PGA Tour last August. LIV joined as plaintiffs, and the PGA Tour countersued.

The concern for PIF was whether its leaders could be deposed, which Saudi Arabia wanted to avoid. Being open to depositions would leave the kingdom's leaders more vulnerable to legal action, including lawsuits demanding they reveal business deals in the United States.

A federal judge had ruled the PIF could not claim immunity from the Foreign Service Immunity Act because of its commercial work with LIV Golf in the U.S.

The PIF appealed the ruling to the Ninth U.S. Circuit Court of Appeals, which was likely to extend the lawsuit deep into 2024 if not longer.

___

Associated Press writer Ellen Knickmeyer in Washington and AP Sports Writer Steve Douglas in Stockholm contributed to this report.