PGA Tour-PIF deal update: PGA policy board says it's 'begun new phase of negotiations' with the Saudi Arabian group
The PGA Tour released a statement about the framework agreement between the Tour, DP World Tour, and PIF after holding a players' meeting on Tuesday, June 27, at Detroit ahead of the Rocket Mortgage Classic.
The PGA Tour’s policy board consists of five independent directors and five Tour professionals. The independent members include Ed Herlihy, Jimmy Dunne, Mark Flaherty, Mary Meeker, and Randall Stephenson. The player members on the board are Rory McIlroy, Patrick Cantlay, Charley Hoffman, Peter Malnati, and Webb Simpson.
A five-page-long framework agreement between the three circuits was released on Monday. The PGA Tour Policy Board said in a statement that the new framework agreement would put an end to the costly lawsuits filed by both parties.
The Tour Policy Board said, as per Sports Illustrated:
"Management, with input from our Player Directors, has now begun a new phase of negotiations to determine if the TOUR can reach a definitive agreement that is in the best of interests of our players, fans, sponsors, partners, and the game overall."
The Board added that this was the main focus of the meeting on Tuesday, which included valuable input from the Player Directors members.
The Policy Board went on to say:
"If future negotiations lead to a proposed agreement, it would need approval by the TOUR’s Policy Board, which includes Player Directors. In the meantime, we are all committed to the safeguards in the Framework Agreement that ensure the PGA TOUR would lead and maintain control of this potential new commercial entity.
"We are confident that the TOUR’s mission will continue to focus on showcasing the game of golf while serving local communities."
What does the PGA Tour-LIV Golf framework agreement say? Details explored
The agreement framework between the PGA, DP World Tour, and LIV Golf was made public on Monday, June 26. As per the agreement, the PGA Tour will be the major controlling authority of the new entity, which is temporarily named NewCo. Tour Commissioner Jay Monahan will be the CEO, and PIF's governor, Yasir Al Rumayyan, will be the chairman. Tour board members Ed Herlihy and Jimmy Dunne will be the board members.
The framework agreement between the PGA Tour, DP World Tour, and PIF. https://t.co/utQK0JefYV
A new communications panel will be formed to make the transition easier. Herlihy will be the co-chairman of the new committee. As per the new agreement, PIF will invest in the new entity for the growth and benefit of the game.
The agreement states:
"In addition, the PIF will make a cash investment in NewCo for an incremental ownership in order to fund the growth of NewCo which will include a right of first refusal on capital raised by NewCo, provided that, for the avoidance of doubt, the PGA TOUR."
For the uninitiated, the PGA Tour and PIF deal was announced on June 6. Since then, the deal has received mixed reactions from the fans. Many fans have criticized the Tour for partnering with Saudi Arabia, which has a history of violating human rights. Fans had also called out Monahan for playing with the emotions of 9/11 victims.