Frequently Asked Questions
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What are the key points from the June 6 announcement about the Framework Agreement?
The Framework Agreement led to the termination of all pending litigation between the participating entities. The three parties are now negotiating toward a Definitive Agreement, guided by specific PGA TOUR safeguards outlined in the Framework Agreement.
Now what happens? What is the process from here?
Next steps include work towards a Definitive Agreement, which would need approval from the PGA TOUR Policy Board that includes Player Directors Patrick Cantlay, Peter Malnati, Rory McIlroy, Charley Hoffman and Webb Simpson. Any proposed Definitive Agreement must be in the best interests of the membership and other constituents in order to be presented to the PGA TOUR Policy Board for approval. This includes explicit and permanent safeguards that ensure the PGA TOUR will lead the decisions that shape its future, and will have control over operations, strategy and continuity of the TOUR’s mission.
If a Definitive Agreement is approved and in place, the PGA TOUR would then lead a new commercial entity to unify golf, one that sees the end of the disruption and distraction that has divided the men’s professional game for the better part of three years. The Public Investment Fund (PIF) would contribute its golf-related commercial businesses and rights (including LIV Golf), along with a significant financial investment, toward minority equity ownership of a new, collectively held, for-profit LLC. This new entity (working name PGA TOUR Enterprises) will also include the PGA TOUR’s commercial businesses and rights, as well as those of the DP World Tour.
Why did the PGA TOUR sign this Framework Agreement, and why is the PGA TOUR engaging in this potential partnership with PIF?
With the Framework Agreement in place, the future of the PGA TOUR and the world of men’s professional golf is significantly brighter. After nearly three years of disruption and fracture, the reunification process of men’s professional golf is underway. All of the distracting, costly litigation between the participating entities has been terminated.
If a Definitive Agreement is reached, additional benefits will include: explicit and permanent safeguards that ensure the PGA TOUR will lead the decisions that shape its future and will have control over operations, strategy and continuity of the TOUR’s mission; and further investment in the players who define the game, and the tournaments, communities and technology that bring it to life for the benefit of our fans and more than 3,000 charities.
Is this a merger?
No. The PGA TOUR remains intact. The subsidiary – PGA TOUR Enterprises – will include PIF as a non-controlling, minority investor, as they are in many other American businesses. PGA TOUR Enterprises will be led by a board of directors. The majority of that board will be appointed by the PGA TOUR, and that entity will be run by PGA TOUR Commissioner Jay Monahan, who will serve as CEO. The PGA TOUR’s controlling interest on that board of directors will remain constant going forward, regardless of the size of the PIF’s initial or any future incremental investments. The board of directors will also have the ability to decline any unwanted investment.
What if a Definitive Agreement is not reached?
The Framework Agreement will terminate at the end of 2023 if the parties do not reach a final agreement. Whether or not a Definitive Agreement is reached, however, the litigation is over. It has already been dismissed and cannot be refiled even if further negotiations over a final agreement do not prove successful.
What is the future of LIV Golf?
There will be a data-driven comprehensive evaluation of LIV Golf to determine how best to integrate team golf into the professional game. The 2023 LIV Golf schedule continues as planned.
Will the PGA TOUR schedule look different?
No. The 2024 PGA TOUR schedule will be announced later this summer.
Can LIV golfers play on the PGA TOUR or DP World Tour in the future?
As part of the work toward a potential Definitive Agreement, the PGA TOUR is in the process of establishing a fair and objective process for any players who desire to re-apply for membership with the PGA TOUR or the DP World Tour following the completion of the 2023 season or thereafter, consistent with each Tour’s policies. This is a complicated endeavor and one that will be guided by established PGA TOUR rules and regulations.
Who controls how the PGA TOUR will be run?
PGA TOUR Inc. will remain in place as a 501(c)(6) tax-exempt organization and retains administrative oversight of the PGA TOUR, including the sanctioning of events, the administration of the competition and rules, as well as all other “inside the ropes” responsibilities; Jay Monahan remains Commissioner of the PGA TOUR and Ed Herlihy as PGA TOUR Policy Board Chairman. PIF’s Governor Yasir Al-Rumayyan will join the PGA TOUR Policy Board.
How will this new entity – PGA TOUR Enterprises – be operated if you reach a Definitive Agreement?
If there is a Definitive Agreement that is ultimately approved by the PGA TOUR Policy Board, the new entity’s Board of Directors will oversee and direct all the new entity’s golf-related commercial operations, businesses and investments. Jay Monahan will serve as Chief Executive Officer of PGA TOUR Enterprises and Yasir Al-Rumayyan will serve as Chairman. The PGA TOUR will appoint a majority of the Board and hold a majority voting interest in the entity.