"I don't think it will ever happen” - Report uncovers PGA Tour's contingency plan if the PIF/LIV Golf negotiations fail
The PGA Tour's merger with PIF/LIV Golf, along with the DP World Tour, was announced on June 6, 2023. However, it is speculated now to not take place any more. Also, the deadline date for the framework agreement, which was December 31, could now be extended to the new year.
As per ESPN's Michael Schlabach's report, the representatives of the PIF are "digging their heels in" to get more control of the new profit golf company.
A source told the sports publication that the chances for the merger to take place were certainly low. He added that the Department of Justice would never allow the agreement to take place with the PGA Tour. Also, he said that "the Saudis" were not too pleased with the little say in the planned merged golf entity.
The source was quoted by 'Golf Monthly' as saying:
"I don't think it will ever happen. I don't think the Department of Justice would ever approve a merger with the PGA Tour. And I don't think the Saudis are pleased with how little influence they'd get in a merged entity. For those reasons, I don't think the merger is ever going to happen."
Just before the 2023 Shriners Children's Open, the PGA Tour also shared a memo about the update on the merger agreement with the PIF/LIV Golf and DP World Tour. As per the ESPN, the memo read:
"We remain focused on reaching a Definitive Agreement with PIF and the DP World Tour, but not surprisingly, these negotiations have resulted in unsolicited outreach and proposals from a number of other interested investors. All of this activity reinforces the Tour's strong position and our potential for growth."
"LIV Golf is not going to go away" - Report suggests the merger agreement between the PGA Tour and PIF/LIV Golf is 'far from done'
After the three golf giants announced the merger deal in early June 2023, there were multiple stipulations put on by all the parties involved. However, most of the power was said to remain with the PGA Tour.
The negotiations and framework agreement were initially planned for December 31, 2023; however, it has been set to extend to next year.
Now, a report claimed that the merger will not even take place. The source, who spoke with ESPN, claimed the LIV Golf would not be going anywhere, so the PGA Tour would have to strengthen its pocket and were already receiving multiple proposals from the investors.
He was quoted by the Mirror as saying:
"There is no shortage of interest in high roller entities to put up money in exchange for a piece of the PGA Tour. LIV Golf is not going to go away. So the tour will need deep pockets to continue to go toe to toe with the Saudis."
The source also commented that finding a wealthy investor would not be a huge problem for the Tour. Henceforth, he added that the chances of the merger deal being called off remain high.