What Is NewCo? Reports Indicate a Crucial Insight Into $3B PGA Tour- LIV Golf Merger and Its Doubtful Future

In what looks like an endless rollercoaster ride for LIV Golf, the recently released documents relating to the merger reveal massive aspects of the arrangement.

Ever since LIV Golf started on 9th June 2022, it has been embroiled in rivalries. The new golf entity titled NewCo will end the rivalry with DP World Tour and especially PGA Tour.

The Saudi-funded league came in like a wrecking ball but, if truth be told, it had been in hot water right from the very first event. With sponsors dropping, players unwilling to commit and often at the brink of dissolving, they pulled out their trump card, a merger with PGA Tour and DP World Tour.

Recently leaked documents regarding the framework of this alliance shed light on the massive $3 billion deal.

NewCo details and highlights

The biggest point to be noted is that PGA Tour, DP World Tour, and PIF, that bankrolls LIV, will form a new organization titled NewCo. PIF will be the financial backbone of the new entity. PIF will also be the premier corporate sponsor for DP World Tour and PGA Tour. 

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Furthermore, the organization will determine the future of LIV Golf. This will also integrate LIV Golf into PGA and DP World Tour events.

The main goal of merging the existing golf League entities is to unify the game and expand financial returns via mergers and acquisitions. The agreement also revealed the aim to provide LIV Golf with the Official World Golf Ranking (OWGR) recognition.  

Read the entire document here:

In addition, the CEO of NewCo will be Jay Monahan, with Yasir Al-Rumayyan, who served as the PIF Governor, taking up the role of Chairperson. The final deal is scheduled to be signed by December 31, 2023.

The future of PGA Tour and LIV Golf

PGA Tour has the upper hand in NewCo with full decision-making powers over operational and strategic matters. Ed Herlihy and Jimmy Dunne of the PGA Policy Board will co-chair NewCo.

NewCo will additionally provide PGA Tour with fees for completion management services. 

Moving forward after the merger, both PGA Tour and DP World Tour will cooperate with PIF. This will be in event scheduling, media rights, and marketing for future events.

LIV Golf, meanwhile for now, will move forward with its upcoming events in Spain and London.

The future of LIV Golf is doubtful at the present moment.

However, even if LIV Golf gets the short end of the stick, PIF will make huge profits with PGA and DP World Tour under their belt.

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