Jay Monahan reveals PGA Tour caved into merger with LIV Golf as it could no longer afford fight
PGA Tour chief Jay Monahan ‘reveals it gave into shock LIV Golf merger as it could not afford to maintain preventing Saudi Arabian PIF’s limitless cash’
Commissioner Jay Monahan reportedly instructed staff that the PGA Tour merely could not afford to maintain preventing the Saudi Arabia-backed LIV Golf League after each excursions’ shock merger.
Monahan, 53, stated the tour was spending tens of tens of millions in its authorized fight with Saudi Arabia’s Public Investment Fund (PIF) whereas additionally growing its personal purses to assist cease different gamers from defecting to the rival circuit.
Monahan made the remarks throughout a gathering Thursday at PGA Tour headquarters in Ponte Vedra Beach, Florida.
He stated the fight was not sustainable in opposition to a Saudi Arabian sovereign wealth fund that reportedly has greater than $600billion in belongings.
The assembly got here two days after the PGA Tour’s stunning announcement that it had shaped an alliance with the DP World Tour and the Public Investment Fund.
Commiss. Jay Monahan shared that the PGA Tour could not afford to compete with LIV in court docket
The PGA Tour was spending tens of tens of millions in court docket charges whereas additionally growing its personal purses to assist cease different gamers from defecting to LIV Golf
Yasir Al-Rumayyan, the governor of Saudi Arabia’s Public Investment Fund, will probably be PGA’s CEO as soon as the merger is formally accomplished
‘We can not compete with a overseas authorities with limitless cash,’ Monahan instructed staff, based on The Wall Street Journal. ‘This was the time. […] We waited to be within the strongest doable place to get this deal in place.’
Monahan instructed them the tour had spent $50million in authorized charges and brought $100M from its reserve funds to assist pay out bigger purses and different bonuses to prime gamers.
In an announcement to ESPN on Saturday, a PGA Tour spokesperson characterised the Wall Street Journal report as an ‘oversimplification.’
‘To characterize that this settlement was made as a result of litigation prices and different use of reserves is an oversimplification,’ learn the assertion, including: ‘With the tip of the fractured panorama on the planet of males’s skilled golf, the PGA Tour has by no means been a extra priceless property.
‘The Public Investment Fund (PIF) has acknowledged that worth and the chance for [return on investment] with their funding within the tour. Additionally, this transaction will make skilled golf extra aggressive with different skilled sports activities and spots leagues.’
Monahan stated that ‘taking a competitor off the board’ was one of many motives for the merger
The merger settlement introduced on Tuesday ends all authorized disputes between the PGA Tour and the PIF.
A supply instructed ESPN that the PGA Tour’s insurance coverage will cowl most of its authorized charges.
Meanwhile, gamers who turned down big-money provides to defect to LIV Golf and caught with the PGA Tour will probably be given fairness shares within the new for-profit entity being shaped by each excursions’ merger, PGA Tour coverage board member Jimmy Dunne stated.
Dunne, who’s being credited with orchestrating the brand new deal, reached out to PIF governor Yasir Al-Rumayyan earlier this yr to start discussions of the settlement that stunned the sports activities world.
Players who declined LIV’s provides & stayed on the Tour will probably be compensated for his or her loyalty
PIF had beforehand been funding LIV Golf, resulting in the schism within the golf world that noticed star gamers like Phil Mickelson, Dustin Johnson and Brooks Koepka depart the PGA Tour behind.
As for star gamers who declined LIV’s provides and stayed, like Jon Rahm, of Spain, and Hideki Matsuyama, of Japan, they’ll now be compensated for his or her loyalty.
‘The new [company] would develop, and the [current PGA Tour] gamers would get a bit of fairness that might improve and enhance in worth as time went on,’ Dunne instructed ESPN.
‘There must be some sort of formulaic resolution on how to do this. It could be a course of to find out what could be a good mechanism that might be actually helpful to our gamers.’
The gamers who joined LIV is not going to be eligible for that fairness plan.
