As PGA Tour and Saudi PIF Deal Inches Closer, More Questions Still Remain

We’re nearly a year past the original deadline for a deal to be completed between the PGA Tour and Saudi Arabia’s Public Investment Fund, but there’s finally a tangible update to the discussions.

According to a Bloomberg report, the Saudi fund — which financially backs the Tour’s rival, LIV Golf — is “in advanced talks about taking a roughly 6% stake” in PGA Tour Enterprises, the for-profit entity that was created after the Tour and PIF came to their framework agreement in June of 2023. Earlier this year, a consortium of U.S.-based sports franchise owners known as the Strategic Sports Group signed a deal to invest as much as $3 billion into PGA Tour Enterprises. Bloomberg reported the PIF investment could match SSG’s terms and also raise PGA Tour Enterprises’ value to around $12 billion.

As with any major deal, terms are subject to change, not to mention a deal of this magnitude requires regulatory approval from the federal government. Rather than a merger, is this investment into the PGA Tour, and perhaps subsequently the DP World Tour, a move to satiate some of those regulatory questions?

This is the first real number that’s been attached to updates on the discussions between the two sides, but there’s still a lot to be decided. LIV Golf is still reportedly looking to do a deal with the DP World Tour. What would a schedule look like? The federal government could deny the PIF investment, or the deal could collapse entirely, which may lead the PIF to double down on its investment in LIV and further divide the men’s professional game.

The one thing that’s clear is the deal between the PIF and Tour is far from the “merger” fans thought they were getting when the framework agreement was announced 18 months ago. LIV has hired top-tier executives from around the sports and entertainment worlds and isn’t going away anytime soon. The question is, will the league exist as the Tour’s new friend or old foe?

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