The reasons for the merger of the PGA Tour with the Public Investment Fund , DP World Tour and the Public Investment Fund to create a global golf entity are beginning to be revealed.
The Wall Street Journal published Saturday, that PGA Tour Commissioner Jay Monahan informed Tour employees on Friday that it could not afford to continue spending millions of dollars to fight the PIF and increase purse sizes in order to combat players defecting from the LIV Golf League.
Monahan told his employees, “We can’t compete with foreign governments with unlimited funds.” This was the right time. “We waited until we were in the best possible position to close this deal.”
Monahan reportedly told Tour’s employees that the model was not sustainable. PIF assets are reported to be $620 billion. The meeting was held two days after a deal to create a for-profit company had been announced.
Monahan told employees that the Tour spent $50 million on legal fees, and $100 million from its reserves to pay for increased purses at designated events and bonuses.
In a statement provided to ESPN by PGA Tour, the spokesperson stated: “To say that this agreement is due to litigation and other uses of reserves would be an oversimplification. The PGA Tour is now more valuable than ever, thanks to the end of the fragmented landscape of professional men’s golf.
RBC Canadian Open: Photos
The Public Investment Fund recognized the value of the Tour and the potential for [return-on-investment] by investing in it. This transaction will also make professional golf more competitive against other sports leagues and professional sports.”
The agreement resolved all legal disputes between PIF PGA Tour.
During the PGA Tour’s players’ meeting on Tuesday in Toronto, Tour professionals called PGA Tour Commissioner Jay Monahan a “hypocrite” and said that it was time for a new leadership. Standing ovations were given for the latter comment.
“Jay was beaten, burned, and abused, but will he lose his job?” A former Tour executive told Golfweek Friday.
The PGA Tour 2023 season will continue as usual on Thursday. The RBC Canadian Open will continue Saturday, followed by the USGA U.S. Open next week in Los Angeles. The LIV Golf League season, with seven events left in 2023 and expected to end this year as well, will also continue.
is still determining the merger.
