PGA Tour Commissioner Jay Monahan, and PIF Governor Yasir al-Rumayyan sat for a CNBC interview Tuesday morning. They discussed the news of the merger that has rocked golf.
After years of tension between LIV and the PGA Tours, both entities along with DP World Tour have announced a yet-to be-named new entity which would combine PIF’s commercial golf businesses and rights, including LIV, with the commercial business and rights of PGA Tour and DP World Tours into a collectively-owned, for-profit venture. Monahan referred to it as a historic event.
Monahan said to CNBC that there had been tensions in the sport of golf over the past couple of years. “But what we are talking about today is unifying the game and doing so under one umbrella.”
Al-Rumayyan said that the conversations began over lunch and golf in London. He noted that the impact of the game on both Tours would have been less if they had met for the same discussion two or three year ago.
He continued, “Because that would be something very small.” But the way we are doing our partnership will be huge in more than one sense.
PGA Tour Inc., a 501(c),(6) tax-exempt organisation that oversees its tour, will continue to exist. Monahan provided more information about the breakdown, and Al-Rumayyan said that PIF was willing to invest billions.
Monahan said, “The c6 is still in place and we will continue to run our tours out of the C6.” We’ll place our player retirement plans, and assets there. This will remain in place. Every week, when we play tournaments we make a big impact in the communities we are invited to. This continues.
The PIF will invest and there will be growth initiatives and additional investments. It’s the PIF’s investment and growth initiatives that are really exciting.
Al-Rumayyan stated that the PIF was committed to doing “whatever is necessary” to achieve success. He later noted that they would not be doing this if it wasn’t profitable.
Al-Rumayyan said, “If you take a look at golf’s size, in terms of money, it is about $100 billion.” “And I believe the growth is there. I believe that by working together, we can achieve a higher growth rate than in the last 10 or 20 year.”
Monahan believes that the potential of the 48 percent of Americans under 35 years old combined audience is enormous.
He said that the commonality is in reaching a younger audience at a moment when the sport was never more popular. “We see the purpose and the commonality of working together at this time to reach a younger population,” he added. We see a huge opportunity in reaching a younger demographic at a time when the sport has never been more popular.
What will the new organization be like now that @PGATOUR has merged with @livgolf_league?
@davidfaber breaks down the details of the tour with Saudi PIF Governor Yasir Al-Rumayyan. pic.twitter.com/z62iNxNd5Y
Squawk Street 6th June 2023
This new partnership will end any litigation that may have been pending between LIV Tour and PGA Tour. Monahan was asked about the reaction of the public to this complete reversal. He said that it is less important what people think today and more important how they will react in 10 years.
He said: “This is a chance we’ve never had and to have capital at this time with the strength in this game,” “there’s simply so many opportunities and it’s a chance we haven’t been able activate but now, we’re going do it, in a highly-disciplined, rigorous manner.”
The PGA Tour Commissioner also dismissed concerns about a global entity for golf raising questions from antitrust regulators.
Monahan stated that “every single professional golfer in the men’s game will have more opportunities and growth.” As we work to improve the women’s golf game, I’d expect the same, and we will grow as an industry. It’s all positive news on this front.
