PGA, Europe Tour join with LIV Golf

Once rivals in court, the PGA Tour and LIV Golf are now partners in business. The PGA Tour, Europe tour and Saudi Arabia's Public Investment Fund says they are merging their commercial business into a single company and will work together. 

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June 7, 2023 - 2:37 PM

Phil Mickelson hits from the 12th tee during the opening round of the LIV Golf Invitational in St. Albans, England. GETTY IMAGES/MATTHEW LEWIS/TNS

The announcement was so shocking that not even PGA Tour players knew what was coming. The tour was fighting the threat of Saudi-backed LIV Golf for more than a year. On Tuesday, they decided to start working together.

The PGA Tour, European tour and Saudi Arabia’s sovereign wealth fund say they will combine their commercial businesses into a new company with hopes of unifying golf.

That means all lawsuits are being dropped immediately. The other details create as many questions as answers. That starts with whether top stars like Phil Mickelson and Brooks Koepka — suspended for taking massive Saudi money to leave the PGA Tour for LIV — will have a way back. They would rejoin players who stayed loyal to the tour.

The PGA Tour was in federal court trying to require Yasir Al-Rumayyan, the governor of the Public Investment Fund, to give testimony in an antitrust case. And now, Al-Rumayyan is on the PGA Tour board of directors. He also will be chairman of the new business venture involving the three tours.

Some players felt they were betrayed. Top players have not commented because they know so little about what this means.

Missing from all the announcements was Greg Norman, the commissioner of LIV Golf.

WHAT IS LIV GOLF?

LIV Golf is a rival league funded by the Saudi Arabia sovereign wealth fund that has tried to reinvent the structure of professional golf with 48-man fields, no mid-tournament cuts and up to $25 million in prize money. There also is a team component. The league is run by Greg Norman, a former PGA Tour star who tried nearly 30 years ago to create a world tour. LIV Golf lured away 13 former major champions, including Phil Mickelson and Dustin Johnson, who then were suspended by the PGA Tour.

WHY DID SAUDI ARABIA WANT TO CREATE A GOLF LEAGUE?

The kingdom has been investing in sports and entertainment in recent years as part of Crown Prince Mohammed bin Salman’s initiative called “Vision 2030” to diversify and reduce its dependence on oil. Golf was a natural fit.

It has led to accusations of “ sportswashing,” an attempt to use sports investments to gloss over human rights abuses, such as the 2018 killing of Washington Post journalist Jamal Khashoggi, which the CIA says occurred on the orders of bin Salman.

WHY ARE PGA TOUR PLAYERS ANGRY AT THE LIV DEFECTORS?

LIV Golf was trying to get all the top players in the world ranking. A majority of them turned down bonuses estimated at $100 million or more to stay loyal to the PGA Tour.

Rory McIlroy accused LIV defectors of “taking the easy way out” and Tiger Woods said they “turned their backs” on the very tour that made them famous. It also caused a great divide in golf, because LIV players were not allowed to play on the PGA Tour. Now they are angry over the notion LIV players might return without consequences.

The PGA Tour looks nothing like it did when LIV Golf started. PGA Tour Commissioner Jay Monahan says he couldn’t match Saudi money, but it wasn’t because of a lack of effort. This year the PGA Tour had 13 “elevated events” with $20 million purses. For 2024, it has returned its schedule to start in January and end in August. There will be about 15 tournaments with $20 million purses — nearly twice as much as they were — for the top 50 in the season points race on the PGA Tour.

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