LIV Golf and PGA agree to merge: What does that mean for the lawsuits and pending litigation?
As shockwaves reverberate around the world, we’re still trying to figure out exactly what a proposed merger between the PGA Tour and LIV Golf means for the sport.
Given the heated nature of back and forth between the two rival golf leagues, few could have predicted such a shocking turn of events and while co-existence is always a better way forward, it’s clear that there are many questions still to be answered when it comes to the proposed merger between the PGA and LIV Golf.
The PGA Tour & LIV Golf agree to merge
Tuesday has brought with it the eye-opening report, that the PGA Tour and its Saudi-backed rival LIV Golf have agreed to merge in a deal that would see them move forward as a single and most definitely larger golf enterprise. Though details are still emerging, what we do know is that the two organizations have signed an agreement that would see them combine their commercial businesses and rights into a new, yet unnamed for-profit company. Interestingly, the agreement also includes the DP World Tour, frequently referred to as the European PGA Tour.
LIV Golf is of course funded by the Saudi Arabia Public Investment Fund, an entity controlled by the Saudi crown prince. Indeed, the PIF is reportedly prepared to invest billions of new capital into the new entity, though terms of the deal have not yet been disclosed.
What about the legal battles between the PGA Tour & LIV Golf?
As has been well documented over the last year, both organizations have been engaged in an all-out war with each other via a number of antitrust lawsuits. To be clear, the deal announced on Tuesday via an extensive press release would end all pending litigation. “...Notably, today’s announcement will be followed by a mutually agreed end to all pending litigation between the participating parties. Further, the three organizations will work cooperatively and in good faith to establish a fair and objective process for any players who desire to re-apply for membership with the PGA TOUR or the DP World Tour following the completion of the 2023 season and for determining fair criteria and terms of re-admission, consistent with each Tour’s policies,” the release read.
What’s been said about the PGA & LIV Golf merger so far?
Speaking about the monumental decision, PGA Tour Commissioner, Jay Mohanan, was seemingly elated about seeing the conflict between the to entities come to an end. “After two years of disruption and distraction, this is a historic day for the game we all know and love,” said Monahan. “This transformational partnership recognizes the immeasurable strength of the PGA TOUR’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf’s players, commercial and charitable partners and fans.
Mohanan continued, “Going forward, fans can be confident that we will, collectively, deliver on the promise we’ve always made – to promote competition of the best in professional golf and that we are committed to securing and driving the game’s future. ...We are pleased to move forward, in step with LIV and PIF’s world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his vision and collaborative and forward-thinking approach that is not just a solution to the rift in our game, but also a commitment to taking it to new heights. This will engender a new era in global golf, for the better.”