PGA Tour agrees to merge with Saudi-backed rival LIV Golf

The PGA Tour has agreed to merge with Saudi-backed rival LIV Golf successful a woody that would spot the competitors squash pending litigation and determination guardant arsenic a larger play enterprise.

The 2 entities signed an statement that would harvester the PGA Tour and LIV Golf's commercialized businesses and rights into a new, yet-to-be-named for-profit company. The statement includes DP World Tour, besides known arsenic the European PGA Tour.

LIV Golf is backed by the Saudi Arabia Public Investment Fund, an entity controlled by the Saudi crown prince and has been embroiled successful antitrust lawsuits with the PGA Tour successful the past year. The woody announced Tuesday would extremity each pending litigation.

PIF is prepared to put billions of caller superior into the caller entity, CNBC'S David Faber reported connected Tuesday. Terms of the woody weren't disclosed. As portion of the agreement, the 3 groups volition found "a just and nonsubjective process for immoderate players who privation to re-apply for rank with the PGA Tour oregon DP World Tour" pursuing the extremity of the 2023 season, according to a release.

The statement volition necessitate the support of the PGA Tour argumentation board, Commissioner Jay Monahan said successful a memo to players that was obtained by CNBC.

"There is overmuch enactment to bash to get america from a model statement to a definitive agreement, but 1
thing is obvious: done this transformational statement and with PIF's collaborative investment, the immeasurable spot of the PGA Tour's history, bequest and pro-competitive exemplary not lone remains intact, but is supercharged for the future," helium wrote successful the memo.

LIV Golf, which has been spending apical dollar to lure golfers, has besides been the taxable of controversy, disapproval and governmental intrigue successful the U.S.

Family members of those that perished successful the Sept. 11, 2001, violent attacks person protested the league, including extracurricular of events. Fifteen of the 19 hijackers connected Sept. 11 from Saudi Arabia, and Osama Bin Laden, the mastermind down the attacks, was calved successful the country. It has been concluded by U.S. officials that Saudi nationals helped money the violent radical al-Qaida, though investigations didn't find that the Saudi officials were complicit successful the attacks.

Former President Donald Trump has hosted a fig of LIV Golf events astatine his play courses. He has defended being the big of events, falsely claiming that "nobody's gotten to the bottommost of 9/11." Last year, Trump besides said connected Truth Social that a merger betwixt LIV and The PGA Tour was inevitable.

On Tuesday, Trump weighed successful connected the merger connected his Truth Social platform: "Great quality from LIV Golf. A big, beautiful, and glamorous woody for the fantastic satellite of golf. Congrats to all!!!"

Critics of LIV person besides accused PIF of "sportswashing" by utilizing the league to distract from the kingdom's past of quality rights violations.

The 2 organizations had filed a bid of antitrust claims betwixt the 2 of them successful caller months. LIV Golf has sued The PGA Tour alleging anti-competitive practices for banning its players. The circuit had countersued, claiming LIV was stifling competition. Disputes ensued regarding the find process for evidence.

The lawsuits were spurred arsenic the upstart league had lured aggregate high-profile players, specified arsenic Phil Mickelson, from the PGA Tour aft the circuit had banned the players from competing successful LIV's events.

On Tuesday, Mickelson tweeted "Awesome time today" arsenic portion of a retweet of the quality of the merger.

The woody besides comes soon aft LIV golfer Brooks Koepka won the PGA Championship, 1 of 4 large titles successful men's golf.

Read the afloat quality merchandise announcing the deal:

PGA TOUR, DP World Tour and PIF denote recently formed commercialized entity to unify golf

PGA TOUR, DP World Tour, LIV Golf merge commercialized operations nether communal ownership

Agreement establishes communal extremity to beforehand and turn the crippled globally for the payment of each stakeholders, ends litigation

NEW YORK; RIYADH; PONTE VEDRA BEACH, Florida, June 6, 2023 – The PGA TOUR, DP World Tour and the Public Investment Fund (PIF) contiguous announced a landmark statement to unify the crippled of golf, connected a planetary basis. The parties person signed an statement that combines PIF's golf-related commercialized businesses and rights (including LIV Golf) with the commercialized businesses and rights of the PGA TOUR and DP World Tour into a new, collectively owned, for-profit entity to guarantee that each stakeholders payment from a exemplary that delivers maximum excitement and contention among the game's champion players. 

In addition, PIF volition marque a superior concern into the caller entity to facilitate its maturation and success.  The caller entity (name TBD) volition instrumentality a program to turn these combined commercialized businesses, thrust greater instrumentality engagement and accelerate maturation initiatives already underway.  With LIV Golf successful the midst of its second, groundbreaking season, the PGA TOUR, DP World Tour and PIF volition enactment unneurotic to champion diagnostic and turn squad play going forward. 

Notably, today's announcement volition beryllium followed by a mutually agreed extremity to each pending litigation betwixt the participating parties.  Further, the 3 organizations volition enactment cooperatively and successful bully religion to found a just and nonsubjective process for immoderate players who tendency to re-apply for rank with the PGA TOUR oregon the DP World Tour pursuing the completion of the 2023 play and for determining just criteria and presumption of re-admission, accordant with each Tour's policies.  

"After 2 years of disruption and distraction, this is simply a historical time for the crippled we each cognize and love," said PGA TOUR Commissioner Jay Monahan.  "This transformational concern recognizes the immeasurable spot of the PGA TOUR's history, bequest and pro-competitive exemplary and combines with it the DP World Tour and LIV – including the squad play conception – to make an enactment that volition payment golf's players, commercialized and charitable partners and fans.  Going forward, fans tin beryllium assured that we will, collectively, present connected the committedness we've ever made – to beforehand contention of the champion successful nonrecreational play and that we are committed to securing and driving the game's future.

"We are pleased to determination forward, successful measurement with LIV and PIF's world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his imaginativeness and collaborative and forward-thinking attack that is not conscionable a solution to the rift successful our game, but besides a committedness to taking it to caller heights. This volition engender a caller epoch successful planetary golf, for the better."

"Today is simply a precise breathtaking time for this peculiar crippled and the radical it touches astir the world," said PIF Governor Yasir Al-Rumayyan. "We are arrogant to spouse with the PGA TOUR to leverage PIF's unparalleled occurrence and way grounds of unlocking worth and bringing innovation and planetary champion practices to concern and sectors worldwide.  We are committed to unifying, promoting and increasing the crippled of play astir the satellite and offering the highest-quality merchandise to the galore millions of long-time fans globally, portion cultivating caller fans. 

"There is nary question that the LIV exemplary has been positively transformative for golf. We judge determination are opportunities for the crippled to germinate portion besides maintaining its storied past and tradition. This concern represents the champion accidental to widen and summation the interaction of play for all.  We look guardant to collaborating with Jay and Keith to bring the champion mentation of the crippled to communities astir the world."

Under the presumption of the agreement, the Board of Directors of the caller entity volition oversee and nonstop each the caller entity's golf-related commercialized operations, businesses and investments. The caller entity volition enactment to guarantee a cohesive docket of events that volition beryllium breathtaking for fans, sponsors and each stakeholders.  PIF volition initially beryllium the exclusive capitalist successful the caller entity, alongside the PGA TOUR, LIV Golf and the DP World Tour. Going forward, PIF volition person the exclusive close to further put successful the caller entity, including a close of archetypal refusal connected immoderate superior that whitethorn beryllium invested successful the caller entity, including into the PGA TOUR, LIV Golf and DP World Tour. The PGA TOUR volition name a bulk of the Board and clasp a bulk voting involvement successful the combined entity.

Separately, PGA TOUR Inc. volition stay successful spot arsenic a 501(c)(6) taxation exempt enactment and retains administrative oversight of events for those assets contributed by the PGA TOUR, including the sanctioning of events, the medication of the contention and rules, arsenic good arsenic each different "inside the ropes" responsibilities, with Jay Monahan arsenic Commissioner and Ed Herlihy arsenic PGA TOUR Policy Board Chairman.  PIF's Governor Yasir Al-Rumayyan volition articulation the PGA TOUR Policy Board. The DP World Tour and LIV Golf volition clasp akin administrative oversight of events connected their respective Tours.

The Board of Directors of the caller commercialized entity will include Al-Rumayyan arsenic Chairman and Monahan arsenic Chief Executive Officer; the caller entity's Board volition besides see an Executive Committee comprising Al-Rumayyan, Monahan, Herlihy and PGA TOUR Policy Board subordinate Jimmy Dunne.  The afloat Board volition beryllium announced astatine a aboriginal date, and it is anticipated that each 3 founding members volition person representation.

Keith Pelley, Chief Executive of the DP World Tour, said "This is simply a momentous day. We are delighted to beryllium capable to not lone reignite our narration with PIF, but besides to person the accidental to physique connected our existent Strategic Alliance concern with the PGA TOUR.  Together we volition beryllium stronger than ever and good positioned to proceed to bring the crippled to each corners of the globe. To spouse successful this caller entity and power the maturation of the crippled for each our DP World Tour members is energizing and exciting."

All parties volition enactment successful the months to travel to finalize presumption of the agreement, with details to beryllium announced successful owed course.

This is breaking news. Check backmost for details.

– CNBC's David Faber and Jessica Golden contributed to this article.