PGA Tour Commissioner Jay Monahan speaks during a press conference prior to the TOUR Championship at East Lake Golf Club on August 24, 2022 in Atlanta, Georgia.
Cliff Hawkins | Getty Images
PGA Tour Commissioner Jay Monahan said Wednesday that the organization is talking to several potential investors as a deadline to clinch a take care of Saudi Arabia’s Public Investment Fund rapidly approaches.
He also indicated that the tour continues to be open to one other investor coming onboard alongside the PIF.
“We’re having conversations with multiple parties,” Monahan during The Latest York Times’ DealBook summit. The Dec. 31 deadline outlined in the unique framework agreement continues to be a “firm goal,” he said, adding that he’ll meet with PIF Governor Yasir bin Othman Al-Rumayyan to “advance conversations.” The fund is controlled by Saudi Crown Prince Mohammed bin Salman.
Monahan gave some insight into how the framework agreement to mix the PGA Tour with PIF-owned LIV Golf got here together earlier this yr.
“As we approached June 5, it was very clear the PGA Tour was facing an existential threat from the $7 billion sovereign wealth fund, and it was determined to control the longer term of our sport,” Monahan said.
LIV and the PGA Tour were engaged in an antitrust legal battle dating back to last yr. The Public Investment Fund had been luring PGA Tour golfers, including star Phil Mickelson, to LIV with deals value a whole lot of hundreds of thousands of dollars.
“We decided to address that by striking a deal that allowed the PGA Tour to remain and retain control” and put an end to the “extensive and divisive litigation,” Monahan said. The deal had the PGA Tour retaining control within the face of an existential threat, he added. “This was a really hard decision, but I’m confident this was the suitable one for our players and our fans.”
Monahan also discussed his own personal struggles as he received backlash, including from lawmakers, pundits and stars reminiscent of Tiger Woods and Rory McIlroy, for the agreement with the Saudis.
The commissioner took medical leave days after the deal was announced. He said he went for a protracted walk the morning of June 11, prayed and got here home to tell his wife that he was in a nasty place and needed help.
The conflict affected “me, my mental and my physical health,” he said Wednesday. “You are not eating right. You’ll be able to’t do anything aside from take into consideration work since you care so deeply concerning the game, the PGA Tour, our players and our history. It took its toll on me.”
Key U.S. lawmakers questioned Saud Arabia’s ties to the deal, suggesting that the proposed merger was an attempt by the Saudi government to distract from its human rights record and gain undue influence through sports investments.
The agreement also opened the door to interest from a slew of potential investors, including Boston Red Sox owner Fenway Sports Group and TKO majority owner Endeavor Group Holdings. The PGA Tour turned down the Endeavor offer last month, however the Fenway bid appears to still be up within the air following confirmation of talks between the firm and PGA earlier this month. It’s unclear whether Fenway’s involvement would coincide with or usurp the Saudis’ bid.
In a bid to gain players’ blessings, the tour said in memo to players earlier this month that it’ll offer players equity ownership in the brand new company following the merger.
When the merger is finalized, “the PGA Tour goes to be ready where the athletes are owners of their sport,” Monahan said. The PIF and “likely one other co-investor with significant experience in business and sports will help the PGA Tour take share from other sports and be much more competitive.”
“What’s most vital to our players is that they go from the model of being independent contractors to being owners,” Monahan added.