$3B Reality Check: PGA Tour-PIF Merger Will Realign The Horoscope Of Golf’s Future, Regardless Of its Outcome

Essentially, less than a week is left before a momentous change. What was started on June 6 will ideally come full circle on December 31. The $3 billion framework agreement appeared to be a panacea at first but opened a can of worms within a few months. Six months and a DOJ investigation, a senate hearing, and another volte-face—this time from a player—later, Jay Monahan and Yasir Al-Rumayyan appear eager to settle the deal.

But much that has happened in the past six months also has a bearing on the initial agreement. Monahan, who looked all but cornered, is bolstered by a big-money investor’s interest in the tour. Greg Norman, the man in charge of LIV Golf’s global operation, has also upped the ante by signing the defending Masters Champion. So, what does the golf world look like in 2024?

Format changes in cards for PGA Tour and LIV Golf?

As per the initial agreement, the PGA Tour would have the upper hand over LIV Golf. A board where the tour will have a majority will dictate how LIV Golf will function. So, if the board decides, they can technically go ahead with certain changes in LIV Golf’s format.

Considering the fact that a format change would also benefit LIV Golf’s bid to gain OWGR points, Greg Norman & Co. might not be too averse to the proposal as well. However, the PGA Tour, in turn, might have to accept some compromises.

The Signature events might become the place where LIV golfers and PGA Tour pros joust together. The elevated events with heftier purses might include a team play match to include LIV Golf’s most important aspect. However, what happens if the deal fails?

Farewell to (legal) arms?

The legal jousting in the wake of LIV Golf’s inception has cost the PGA Tour $20.7 million in 2022 alone. Before LIV came into the scenario, the PGA Tour’s legal cost was around $2M. We don’t know the amount it cost PIF for the legal battle. Regardless, the June 6 agreement put the legal battles to rest.

Both parties filed for dismissal of the previous cases ‘with prejudice.’ In layman’s terms, it means that the lawsuits and counter-lawsuits before that particular date would be rendered null and void. Neither party can restart those lawsuits.

However, that period doesn’t cover the negotiation period that both parties have had since June 6. So, if everything goes south and both parties decide the courtroom is the next venue for their existential battle, the golf world will be back to square zero.

Most importantly, Michael McCann in Sportico reported that no entity received any legal immunity post-settlement. So, if the legal fighting resumes after December 31, considering an extension is not agreed upon by anyone, LIV Golf can argue that the PGA Tour used the settlement as a guide to draw in new investors.

However, in PGAT’s defense, the initial clause allowed them to seek out third-party investors. Moreover, the PGA Tour can also argue that PIF, too, snatched one of their crown jewels within the negotiation period. That also opens up another possibility—a very likely one.

The PGA Tour can lose more star players

Signing one of the biggest critics of LIV Golf sends a strong statement. If the player who publicly committed his allegiance to the PGA Tour a year ago and slammed the LIV GOLF format can join the breakaway league, then who’s next?

Rahm’s $566 million signing was also significant for two major reasons as well. When a slew of stars, like Dustin Johnson, Brooks Koepka, Phil Mickelson, and Bryson DeChambeau, joined the breakaway side, their contract fees were around the ballpark of $100 million, with DeChambeau’s rumored to be the highest at $125 million. If that was not enough of a signal for Rahm, they offered nearly half a billion. So, PIF can, once again, come with a flabbergasting sum to lure away the most prized asset.

In fact, both Viktor Hovland and Ludvig Aberg, arguably the two biggest rising youngsters on the tour, revealed that LIV Golf knocked on their doors as well. Twice for the Swedish star. So, the nascent league definitely has more players on their radar, and armed with a $775 billion sovereign wealth fund, future contracts can go upwards. While the tour might have the backing of SSG, which is slated to invest around $2.5 billion in the tour, it’d be reckless to enter the rings with that.

Ironically, it was the merger agreement with PIF that legitimized the dealings with the Saudi-backed side. “They let the first guys really take the heat, and then this framework agreement legitimized basically what LIV was trying to do; then I think it’s made it easier now if that’s really what you want to do.” Rory McIlroy frankly admitted.

Read More: As Strategic Sports Group Prepares a Mammoth Bid, Does the PGA Tour Have a Future Without PIF?

So, what will the golf world look like next year? Deal or no deal, it won’t be the same. If an extension is agreed upon, both parties will continue to ruminate over the best course of action. Meanwhile, both LIV and the PGA Tour continue to walk down separate paths. But one outcome is guaranteed. More money for players.

And with that more leverage for players in the product they help promote, Let’s not forget that five of eight signature events with elevated purses will not have any cuts, just like LIV Golf events. LIV Golf has forced PGAT to change the way it functions, and it will continue to exert that influence, directly or indirectly.

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