Rory McIlroy almost jetted off to New York after the second round of the Memorial Tournament on Friday. Instead, he’s sticking around to join the first in-person meeting of the PGA Tour’s transaction committee with the Public Investment Fund (PIF) of Saudi Arabia via video conference. This committee includes heavyweights like Tiger Woods, Adam Scott, and McIlroy himself, but Rory insists they’ll be "more in the background" because “this is big boy stuff.”
Here’s what’s exciting about this meeting:
- The PIF backs LIV Golf and is eyeing a potential investment in PGA Tour Enterprises.
- This could reshape the future of men’s professional golf.
Key Points:
- LIV Golf’s Future: McIlroy doesn’t see LIV slowing down anytime soon. “They’re buying office space in New York. They have over 200 employees. I don’t see a world where they don’t want to play over there either, right? You’ve got guys who are on contracts until 2028, 2029," he remarked after his opening-round 70 at Muirfield Village Golf Club.
- Collaborations: McIlroy envisions a future where there’s more collaboration between LIV and the PGA Tour, with players possibly competing in both leagues.
Last month, McIlroy, Woods, and Scott were appointed to a “transaction committee” to negotiate directly with the PIF. The goal? Secure investment for the new PGA Enterprises and bring peace to the sport. Other committee members include:
- PGA Tour commissioner Jay Monahan
- Former Tour player Joe Ogilvie
- Joe Gorder of Valero Energy, who chairs PGA Tour Enterprises
- John Henry from Fenway Sports Group
They’re meeting with the PIF and its governor, Yasir Al-Rumayyan, in New York on Friday afternoon. McIlroy mentioned the committee has been meeting frequently with PIF representatives.
“There’s going to be people in that room on the PGA Tour side who are going to take the lead,” McIlroy said. “And it’s not going to be Adam, Tiger, or I. That’s going to be Jay, Joe Gorder, Joe Ogilvie, John Henry. It’s going to be the business guys. We’re there to maybe give a perspective from a player’s point of view.”
A year has passed since the “framework agreement” was announced, with no deal yet, and plenty of speculation. The Strategic Sports Group's (SSG) $1.5 billion investment in PGA Tour Enterprises complicated talks with the PIF, but discussions have resumed with significant ground to cover.
McIlroy acknowledged the complexity of the situation, especially with the DOJ rejecting anti-competitive language in the framework agreement. “My stance on some of the LIV stuff has softened,” McIlroy said. “They’re contracted to play 14 events, but the other 38 weeks of the year you’re free to do what you want.”
This meeting marks the first time Al-Rumayyan is meeting players like Woods and Scott since the PGA Tour Policy Board meeting in the Bahamas in March. Rory believes PIF’s involvement will depend on regulatory decisions by the DOJ, possibly requiring a passive investment approach.
“First and foremost, Yasir is the governor of the PIF and the chairman of Aramco (Saudi Arabia’s lucrative oil company). His biggest thing is making returns on his investments and to do good by the Kingdom,” McIlroy explained. If investing in PGA Tour Enterprises offers good returns and a strategic seat at the table, it’s a win for Al-Rumayyan.
This intricate web of negotiations, player contracts, and regulatory hurdles makes for a fascinating and evolving story in the world of golf.
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