Davis Love III, a PGA Tour veteran and member of the Public Investment Fund in Saudi Arabia, has revealed the worst kept secret in golf – the deal will not be completed any time soon.
Love told an interviewer on Friday, in Ponte Vedra Beach (Florida), where he had been meeting to discuss a golf project, that “nothing is going happen very fast.”
When asked if he believed a deal beyond a framework agreement announced on 6 June would be concluded by the end the year, he replied, “I see no way.”
But Love is not discouraged. He stated that the Tour is now focusing on what’s best for players, and he approves of their options.
He said, “It forced us to look back at the past 53 years and imagine what will happen in the next 50.” “How can we prepare our company for the future?”
He also has a new perspective on players who have jumped ship to join the LIV Tour, which is a relatively new tour.
“I told them some of this from the beginning. Love replied, “I’m not against who you are as a person. I’m against the situation and I think that you’re making an awful business decision.” “Jay explained to these guys that you were signing with our rival and giving their competitor leverage, which would hurt our ability make decisions and our financial situation. You don’t understand that this isn’t just about playing in one golf tournament or another.
“I still oppose the hostile takeover. These guys have signed up with a company who is trying to take over Pepsi. Would you let a group of guys who left Pepsi to go to Coke to try to takeover Pepsi come back? I don’t believe so. “It may not be an exact comparison, but they sued to force us to change our rules in order for them get what they wanted.”
What should the Tour look like in the future? Love stated that this is a hot topic in the halls of PGA Tour HQ and the policy board. Love, the longest serving member of the PGA Tour Policy Board and an elder statesman of the Tour, has been asked to return as a member of a “daily” governance committee in order to ensure that this issue is always on the agenda.
“I’ve been dragged back into the board discussions and I’m now learning more.” It is so much more than (LIV) should be receiving world ranking points. He said: “There’s a lot I don’t know, but I know that there’s nothing happening right now except where do we want go?” “We may have screwed things up in the last three year, but how can we fix the PGA Tour? Is there another model? Are we independent contractors or not? What do we do now that the lawsuits have been dropped? What does (the PIF want) to do next? They really want to continue spending that much money on the LIV? “Probably not.”
Love said that Saudi Arabia’s unwillingness of negotiating may be the reason why a deal is not reached by the deadline.
“It is the same as a lawsuit: We will never go to trial if we don’t do any discovery. Our staff and our players conducted discovery. They refused.
Love said, referring back to the Tour. “We made an offering, and if you never communicate with us, we cannot make another offer.” What’s happening is bizarre. It’s far from anything. Sharks are in the area. “Now everyone wants to invest on the PGA Tour.”
There are reports that up to 10 investors could be considered as possible options for the Tour. However, Endeavor has reportedly stated it was already rejected. This is either to dilute PIF’s stake in order to make the deal more acceptable to the U.S. Department of Justice, and to the public, or as an alternative to Saudi funds. Love said that it would take time to consider these options.
He said, “We don’t have to worry about money. That’s the beauty of it.” “One very intelligent businessperson said, ‘You might think you’re a mess, but I buy distressed businesses and try to fix the to make money.’ You make a lot more money than your company. The way things are is fine. You’re only trying to make it better. You’re in an excellent position.
Love continued to say that he was not only interested in partnering with the Saudi fund, but also any other investment funds who were looking to invest money into the Tour.
“Would we want Warren Buffett, instead of PIF to control the PGA Tour because he has given us a lot of money?” He wondered, “Shouldn’t players be in control of the PGA Tour? And the staff approved by the board?”
Love said that he was delighted to have Tiger Woods join the Tour’s Policy Board to give it another voice. He also stated that the first thing to do is to strengthen the Tour governance, and begin rebuilding trust among key constituencies.
Love asked, “How can we restructure our board? We need an independent director. That has to be done first.” Then we’ll decide if a deal is available.
Love was asked to explain why Woods would want to be involved in the Tour’s business at this time. He replied, “He loves helping players become more involved. I’m glad he is doing it.”
Love, even as the clock counts down to make a deal for PIF is thinking big and long-term.
He said, “I believe it will be amazing for our business.” “The only thing that I know is that nothing will happen very quickly.”
