Two staggering reports made headlines last night. First, the PGA Tour commissioner was reportedly traveling to Saudi Arabia for a face-to-face meeting with PIF chairman Yasir Al Rumayyan. If that raised hopes, the second, shocking lawsuit seemingly threw everything in jeopardy.

The Athletic reported that Yasir Al Rumayyan, the man behind PIF, is facing a $74 million lawsuit from Saudi Arabia’s former intelligence chief, Dr. Saad Aljabri. The legal papers were addressed directly to the PIF Chairman and sent to PIF’s London, New York, PIF headquarters, and St. James Park, the home ground of English Premier League club Newcastle United, where Rumayyan has an 80% stake. While the claims in the lawsuit are potentially damaging to the PIF chairman’s public image, the implications for the PGA Tour can be even more grave.

The timing of legal woes could not have been worse

The allegations raised their heads, as both Monahan and Al-Rumayyan seemed eager to settle the deal as soon as possible. Keith Pelley, the outgoing CEO of the DP World Tour, told the London Telegraph that they had a lengthy phone conversation that substantially moved the talks further.

Furthermore, the Sports Business Journal reported that Jay Monahan has, in fact, left for Saudi Arabia to have a meeting with the PIF chairman. The in-person meeting, long overdue according to some quarters, was another indication that both sides are ironing out the final differences. In fact, Keith Pelley also indicated that he would stay until April to see the end of the negotiations.

Also of significance is the changing perception around LIV Golf. In recent months, many, including Rory McIlroy, have struck a reconciliatory tone regarding the upstart league. On the other hand, Phil Mickelson, Ian Poulter, and Bryson DeChambeau have welcomed the change. Coming at a time when Golf World was looking to heal, the serious nature of the allegation can once again cause significant disruption.

PGA Tour and PIF have one more challenge to overcome

The PGA Tour and the PIF are already juggling with multiple problems, some individual, some shared. There are uncertainties about how the Tour and PIF can have combined events. Moreover, the future of the banned players also hangs by a thread. In the last leg of the negotiations, the Tour and PIF looked to sort out existing problems.

The PIF chairman might instead get more occupied with the lawsuit. Of significance is also how the Senate views the matter. Granted, Aljabri’s family filed the lawsuit in a Canadian court. But the Senate’s interest in the preliminary agreement showed that they are keeping a keen eye on the merger talks. Notably, Rumayyan earlier sought diplomatic amnesty, which was rejected. Regardless, the PIF chairman didn’t appear before the Senate, citing personal reasons.

Let’s also not forget that the Department of Justice compelled the Tour to remove an anti-competitive clause earlier. So, the high-profile merger, because of its future implications, is already on the radar of the Senate. On top of that, the ongoing fiasco further complicates the matter of public perception for the Saudi-backed side.

The breakaway league has historically suffered from a lack of public acceptance. Aside from the format, PIF’s ties with a foreign government did not sit well with many. Finding sponsors and broadcasters has also been a tough nut to crack. A libel might even fan the fire and, by extension, singe the Tour’s hand as well. So, is this a moment for the Tour to change its plans?

But does the PGA Tour have a future without PIF??

Notably, there has not been any official announcement from either side. In fact, Monahan’s trip to Saudi Arabia has been wrapped in secrecy. Nevertheless, it is abundantly clear that both parties have moved quite deep into the negotiations. While there is never a point of no return in multi-billion-dollar agreements, the consequences are usually dire.

PIF’s $566 million king’s ransom for Jon Rahm makes it abundantly clear that it’d be foolhardy for the Tour to get involved in a financial bout against PIF. Making matters worse, the Tour has been losing sponsors. Monahan’s growing demands on the title sponsors, ostensibly to thwart the monetary threat from the breakaway side, have backfired.

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The Tour has already searched for sponsors and finalized Strategic Sports Group as a potential partner. Having a third-party investor offers the Tour the option it can fall back on should the framework agreement go south. But from Monahan’s comments, it looks unlikely that the PGA Tour will go ahead, raging an unsustainable war against the PIF. Greg Norman, in an email to Monahan two years ago, threatened that there was more to come. The fact that LIV Golf is here to stay is not lost on Monahan.

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