The three tours' commercial operations and rights will be integrated under the terms of the deal into a brand-new, for-profit company that has not yet been given a name. All current litigation will also be resolved as a result of the agreement. LIV Golf and the PGA Tour engaged in legal conflict during the course of the previous year. The agreement must be approved by the PGA Tour policy board, according to the sources. The Public Investment Fund (PIF) of Saudi Arabia, which has supported the LIV Golf series financially, has declared its intention to invest funds in the startup business. According to the report, the sovereign wealth fund is willing to invest billions of dollars in the organization.
It will be the sole investor in the new firm at first and will have the first option on any funds that could be invested in it, including any of the three tours. A board of directors will be in charge of the company, which would manage all golf-related enterprises, operations, and investments. Yasir Al-Rumayyan, the PIF governor, will serve as its chairman, while Jay Monahan, the commissioner of the PGA Tour, will serve as its chief executive. Along with Al-Rumayyan, who will also join the PGA Tour policy board and Monahan, the executive committee on the board will be made up of PGA Tour policy board chairman Ed Herlihy and policy board member Jimmy Dunne.
Additional board members, some of whom will guarantee participation in all three tours, will be revealed later. The PGA Tour will hold a majority voting stake in the new firm as well as the authority to choose the majority of the board members. In accordance with the agreement, a "fair and objective process" will be developed to enable any LIV Golf players who choose to reapply for membership with the PGA Tour or the DP World Tour after the 2023 season to do so. Additionally, it is certain that each of the three tours will continue to be in charge of managing day-to-day operations. "This is a historic day for the game we all know and love after two years of disruption and distraction," said Monahan.
"This transformational partnership recognizes the immeasurable strength of the PGA Tour's history, legacy, and pro-competitive model and combines it with the DP World Tour and LIV - including the team golf concept - to create an organization that will benefit the game of golf's players, commercial and charitable partners, and fans." "We are proud to partner with the PGA Tour to leverage PIF's unparalleled success and track record of unlocking value and bringing innovation and global best practices to businesses and sectors worldwide," Al-Rumayyan continued.
"We are dedicated to uniting, promoting, and expanding the game of golf throughout the world and providing the highest-quality product to the many millions of devoted fans around the world while also cultivating new fans," the company states. Although it is unknown what his position would be in the new company, DP World Tour CEO Keith Pelley expressed his appreciation for the deal. This is a significant day, he declared. "We are excited to be able to strengthen our present strategic alliance agreement with the PGA Tour as well as rekindle our relationship with PIF. Together, we will be more powerful than ever and in a great position to spread the game around the world. It is stimulating and fascinating to collaborate with this brand-new organization and help the game development of all of our DP World Tour participants.
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