PGA Tour on guard against breaking deal with PIF Saudi

The US golf tournament's governing body is in contact with several major players to plan for the future in case the joint venture project with the Saudi Public Investment Fund (PIF) fails.

According to ESPN , PGA Tour Vice President Jason Gore announced that the Policy Board will discuss all external cooperation negotiations on November 13. The plan for the high-level meeting was mentioned by Gore in an internal memo.

In the document, he asserted that the PGA Tour is still focused on finalizing specific agreements with its allies DP World Tour and PIF Saudi and that this process has brought many cooperation proposals from many other investors. Gore asserted that these moves further affirm the position and development potential of the PGA Tour.

Through private sources, ESPN said at least 10 investment organizations and corporations have suggested pumping money into the PGA Tour. On October 12, CEO Ari Emanuel of Endeavor Group confirmed that he had submitted a proposal to cooperate with the PGA Tour to compete with seven other units. Endeavor operates in the field of media and talent management in the US sports and entertainment industry, and is currently a major shareholder in the unit operating the WWE performance wrestling system and UFC free-style martial arts. The market value of this enterprise is at 9.5 billion USD.

Endeavor is one of eight clients looking to partner with and invest in the PGA Tour. Photo: Reuters — Endeavor is one of eight clients looking to partner with and invest in the PGA Tour. Photo: *Reuters*

Following that development, the PGA Tour was accused of "playing two cards" when it received PIF Saudi and then contacted many other sources. But it was a reasonable move for the PGA Tour according to experts' analysis.

In June 2023, the PGA Tour and DP World Tour unexpectedly announced a partnership with PIF Saudi, with a preliminary agreement in which the core terms were that the US and European golf arenas would link commercial activities with the Saudi economic organization's LIV Golf League. The three parties agreed on a specific deadline for the agreement to be finalized on December 31 of this year and could be extended further depending on the actual situation.

However, the Saudis have recently sought more control over the joint venture, having previously agreed to spend money while the direction rests with the PGA Tour.

On the other hand, that blockbuster project is being hindered by the US government, shown through suspicions of antitrust violations from the Department of Justice , economic interests and national security from the Committee on Foreign Investment as well as the subcommittee in charge of investigations in the Senate.

During a July hearing, Senator Richard Blumenthal asked PGA Tour officials to estimate the investment from the Saudi PIF, which he estimated at more than $1 billion, roughly equal to the PGA Tour’s total net worth at the end of 2022.

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