Two Years Later, What's Changed Since the PGA Tour, Saudi PIF Framework Agreement?

Two years ago today Jay Monahan and Yasir Al-Rumayyan sat down for a bombshell of an interview on CNBC to announce the framework agreement between the PGA Tour and Saudi Arabia’s Public Investment Fund. The news sent shockwaves through the golf world at the time, but in hindsight the agreement was nothing more than a way to end litigation between the two sides and not the “merger” that fans had hoped for.

There have been numerous meetings over the years from the Bahamas to the White House, and yet no tangible progress has been made. The last 24 months have produced more questions and fewer answers despite reports of “stronger” discussions that have “inched closer” to a deal. The PGA Tour reportedly rejected a $1.5 billion investment from the PIF in April and has ventured on with its signature event model. Meanwhile, LIV Golf, which is financially backed by the PIF, has continued to chart its own path forward by signing various sponsors and hiring high-profile executives from the sports and entertainment sectors.

We’re basically in the same place today as we were on June 6, 2023. With nothing new to report, let’s look back on what has happened since the announcement.

Jimmy Dunne and Ed Herlihy were two of the main architects of the framework agreement, and now neither is involved. Former DP World Tour CEO Keith Pelley, who signed the agreement, has also moved on to a new role as the president and chief executive of Maple Leaf Sports and Entertainment.

PIF was supposed to be the “exclusive investor” in the PGA Tour’s new for-profit entity, now known as PGA Tour Enterprises. Instead, the Strategic Sports Group, a consortium of U.S. sports franchise owners, was the first to invest an initial $1.5 billion into PGA Tour Enterprises. The investment could reach as much as $3 billion.

The PGA Tour Enterprises Board of Directors originally planned to include Al-Rumayyan as chairman and Monahan as CEO. Joe Gorder, former executive chairman of Valero, is now the policy board and enterprises board chairman. The Tour is currently searching for a CEO, with Monahan expected to stay on as commissioner.

{{inline-related}}

In a release on June 6, 2023, Monahan said, “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.” The team concept has since been described as a nonstarter for the Tour in negotiations.

Al-Rumayyan had this to say at the time: “There is no question that the LIV model has been positively transformative for golf.” In a way, yes, LIV has done well to host events in golf-starved areas of the country and world. Golf fans who attend LIV events have a fun time. But the TV ratings are an embarrassment despite the move to Fox, and the results are inconsequential. The team concept can be interesting late on a Sunday, but it hasn’t caught on with the masses after three years, despite what some social media accounts may say.

Remember those ridiculous talking points the PGA Tour prepared for Tiger Woods where he was supposed to say “Jay is working his ass off” and that players should “do what I did: tell the Saudis to go (expletive) themselves. And mean it.” As Joseph LaMagna noted this time last year, the comments are especially hilarious now that the PGA Tour is negotiating with the PIF.

It’s now been 523 days since the initial December 31, 2023, deadline to get a deal done. For those still waiting for the pen to hit the paper, you can stop holding your breath if you haven’t already.

‍This piece originally appeared in the Fried Egg Golf newsletter. Subscribe for free and receive golf news and insight every Monday, Wednesday, and Friday.