The golf world received a first glimpse of the initial framework agreement for the new partnership between the PGA Tour, DP World Tour and Saudi Arabia’s Public Investment Fund on Monday evening.
This framework agreement simply did not reveal much. There are still many more questions than answers.
and No Laying Up reported the six-page document on Monday, the same day the Tour sent the document. This committee, headed by Senator Richard Blumenthal, is investigating the partnership.
“The framework outlines a future for professional golf under the leadership of the PGA Tour that benefits players, fans and the sport,” a Tour spokesperson told The Washington Post. “Following the recent resolution of the litigation, we are working productively towards a definitive agreement.”
The deal was signed by Tour Commissioner Jay Monahan, DP World Tour CEO Keith Pelley and PIF Governor Yasir al-Rumayyan on May 30, a week before Monahan announced the deal on CNBC. The agreement was reached after six weeks of negotiations.
Although most of what was in the document was either already known or still very vague, there were several notable pieces of information, including:
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The future of LIV Golf will be determined by the new company’s board of directors after Monahan issues a recommendation, although the agreement stipulates that the three leagues will co-exist. The Tour will have “full decision-making authority” over golf competitions.
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A new “communications committee” will “facilitate a smooth transition” and manage communications between the three entities.
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The PIF will be a “first corporate sponsor” of the Tour and the DP World Tour, and will be a title sponsor for at least one high profile event.
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No precise figures are given regarding the amount that the PIF is investing in the new entity, called “NewCo” in the document. The PIF would be preparing to invest billions.
Monahan shocked the sport earlier this month with his announcement of the partnership, since. Monahan once invoked the 9/11 terrorist attacks while defending the Tour on LIV Golf, leading to groups like 9/11 Families United and calling it this month.
Monahan repeatedly referred to the deal as a “framework agreement” when first announced, and many details have yet to be determined. Le Tour and LIV Golf have filed motions to dismiss their litigation against each other. The framework agreement indicates that the parties will work to find a way to allow LIV Golf members to join either circuit after the 2023 season, although it is still unclear at what time. fine or penalty they will face.
Monahan will be the CEO of the new entity and Al-Ramayyan will be its chairman, although the Tour will retain a majority voting stake. Monahan has since taken a step forward. We don’t know when he will return.
Blumenthal’s committee investigation is one of many into the new deal. Two others the agreement on antitrust concerns, and the issue.
The Tour board is due to meet on Tuesday, although Monahan is not expected to be there. There probably won’t be a formal vote, but this deal and the future of the sport will undoubtedly take up a lot of this meeting.
Although the six-page agreement is only the beginning, there is still a long way to go to make this partnership truly operational. The agreement can be terminated before the end of the year by both parties, and the numerous investigations could complicate matters further. And with the few details actually included in the framework agreement, it’s clear there’s still a lot to do.