While Jay Monahan Appears ‘Firm’ on PIF Deal Deadline, a Memo on a “Unnecessary” Clause Throws New Light on the $3B Merger

New details have emerged from the $3 billion framework agreement between the PGA Tour, the DP World Tour, and the PIF, that bankrolls LIV Golf. A memo shared by the PGAT to Korn Ferry. The said memo reveals surprising details about a now-removed clause, that was aimed at stopping the breakaway league from recruiting players from the Tour. The details offer surprising nuances about the merger.

The resurfacing of the PGAT memo is an interesting development in light of Jay Monahan’s recent comments. The Tour commissioner appeared steadfast about the fast-approaching deadline, refusing to concede an extension is inevitable. While many questioned LIV Golf’s credibility as a potential business partner, these surprising nuances throw more light on the framework agreement that is set to reach its December 31 deadline soon.

The scrapped clause highlights major issues in the deal

Brendan Porath, co-host of the Shotgun Start podcast, shared an interesting detail about the framework agreement. All the parties initially agreed to a ‘non-solicitation’ clause, effectively, agreeing that nobody would “interfere with the relationships that other tours had with their players.” 

Clearly, the clause barred LIV Golf from ‘poaching’ players from the PGA Tour. However, in the wake of the U.S. Department of Justice probe this particular clause was scrapped. PGA Tour notified the Korn Ferry Tour players in a memo dated July 14, 2023, that “We believe the provision was unnecessary as all parties are negotiating in good faith and further, the PIF had stated that they have no intention of recruiting players for this year as the LIV Golf roster is full.”

Porath pointed out that since the clause was removed there is no bar in LIV Golf recruiting Rahm or for that matter any other player from either the PGAT or the European Tour. But LIV Golf agreeing to not lure any players away and yet, reportedly negotiating with Rahm has riled many. However, as the Sports Journalist, writes, PIF officials can indeed cite that the ‘promise’ of not recruiting any new players only applied to the last year. “Rahm would be for 2024, can argue FA covers 2023.”

Notably, LIV Golf is hosting the Promotions Tournament for the first time this year. The Q-school-type event will be an entry point for new players into the breakaway league. Moreover, there are reports from well-placed sources that Jon Rahm, has verbally agreed to a five-year deal with Greg Norman fronted league. However, the PGA Tour commissioner remains unfazed that the merger agreement can solve all remaining issues.

What did Jay Monahan say about the deal?

Jay Monahan appeared on the New York Times Dealbook Summit recently. The PGAT commissioner spoke about reaching the deadline for the $3B merger agreement. While many speculate that the Tour is set to miss the self-imposed deadline, Monahan said that the year-end deadline remains “a firm target.”  

Read More: Following Phil Mickelson’s ‘Credibility’ Outcry, ‘Best Leader’ Jay Monahan Confesses His Most ‘Difficult Call’

Interestingly, calling himself the ablest man to steer the PGA Tour in these troubling times, he said, there are other investors lined up as well. Reportedly, Fenway Sports Group is one of the biggest names looking to invest in the PGA Tour in addition to the Friends of Golf. As Jay Monahan said there will be, “another co-investor…that’s going to help take the PGA Tour to another level.” However, recent reports indicate the latter has backed out of the race. 

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