PGA Tour send memo to players with update on Saudi deal

The PGA Tour has sent a memo to players to inform them it has received new interest from other potential investors.

The note claims to still be focused on reaching a full agreement with Saudi Arabia’s Public Investment Fund and the DP World Tour.

However, sources have told ESPN that while negotiations are ongoing, the deal is “far from getting done” for several reasons.

Those include PIF officials seeking more control of the new commercial entity and remaining stubborn on the introduction of team golf.

In the memo sent on Wednesday, obtained by ESPN, executive vice-president Jason Gore said: “The process we’ve put in place is working well.”

“We remain focused on reaching a Definitive Agreement with PIF and the DP World Tour, but not surprisingly, these negotiations have resulted in unsolicited outreach and proposals from a number of other interested investors.

“All of this activity reinforces the Tour’s strong position and our potential for growth.”

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Saudi’s sovereign wealth fund, the PGA Tour and the DP World Tour announced that they had signed a framework agreement on June 6.

Now called PGA Tour Enterprises, that “combines PIF’s golf-related commercial business and rights (including LIV Golf) with the commercial business and rights of the PGA Tour and DP World Tour”.

The agreement is set to expire on December 31, although that could be extended.

The source also told ESPN that “at least ten” private equity groups and other investors have had discussions about investing in the established American circuit.

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Among alternative transactions to the deal with PIF, Bloomberg reported last month that Endeavor Group Holdings Inc. and Fenway Sports Group were interested.

The source said: “There is no shortage of interest in high roller entities to put up money in exchange for a piece of the PGA Tour.

“LIV Golf is not going to go away. So, the tour will need deep pockets to continue to go toe to toe with the Saudis. I don’t think there will be a problem for them [the PGA Tour] to find wealthy enough partners.”

According to the memo, a policy board meeting will be held on November 13 – three days before the start of the RSM Classic at Sea Island – to discuss the ongoing negotiations.