During a long board meeting on Monday, the PGA Tour appointed a new member to its policy board. Tour Commissioner Jay Monahan updated players via a memo he sent them on ongoing negotiations with Saudi Arabia’s Public Investment Fund.
Tiger Woods was a new member of the PGA Tour Policy Board at Monday’s meeting, which took place in Florida’s Ponte Vedra Beach.
Monahan stated that a special independent director selection panel was formed to fill the vacant seat left by Randall Stephenson who resigned in June after the framework agreement between PIF and the company was announced. 90 candidates were also vetted for this role.
Monahan wrote, in a memo that Golfweek obtained, “We are pleased to announce, upon the Committee’s recommendations and with the full approval of the Policy Board, Joe Gorder will fill the 5th Independent Director seat.” Since 2002, Valero Energy Corporation has supported the PGA Tour as the title sponsor of The Valero Texas Open. This partnership is secure until 2028. Valero generated over $228 million of charitable donations during that period, including $23 millions in 2023.
Patrick Cantlay has been re-elected by the Player Directors as the fifth Director (2024-2026). Ed Herlihy continues as Policy Board Chair and Mark Flaherty serves a second term of four years (2024-27).
Team USA golfer Patrick Cantlay speaks to the media at a press event prior to a Ryder Cup practice round at Marco Simone Golf and Country Club. Adam Cairns – USA TODAY Sports
Monahan said that the negotiations towards a definitive deal with PIF and DP World Tour remained on-going and a priority.
In the memo, he said: “Progress was deliberate, given the complexity of the potential agreement. We will keep you informed of progress with the continued input and guidance from your Player Director and player advisor Colin Neville.” As you may know, the Framework Agreement between PIF and the DP World Tour sparked a lot of interest, which was not unexpected. Allen & Company, the investment bank of the PGA Tour, received dozens of inquiries from potential investors who wanted to be part of the transformational growth of the Tour.
In the Policy Board Meeting, we reviewed the remaining bids in conjunction with Independent Directors and Player Directors – with input from Allen & Co. & The Raine Group – and agreed to proceed with the negotiations in order to choose the final minority investors in a timely fashion.
The memo also highlighted the possibility of player equity in PGA Tour Enterprises, the entity that is currently for-profit.
The memo stated that “Tour Management has designed a plan to align the interests and commercial success of the Tour with our members via direct equity ownership of PGA Tour Enterprises.” This would be an unprecedented offer in professional sports when we secured outside investment. No other league gives its members/players direct equity ownership of the league’s business. All of our prospective investors are aware that the PGA Tour would be stronger if its players were more closely aligned to the success of the business.
Monahan concluded by stating that “the governance assessment remains a top priority” and writing, “we have agreed to move forward this process at an accelerated rate with the ad-hoc committee.”
The memo sent to players did not mention whether a deal would be made by Dec. 31, the deadline.
