The PGA Tour and LIV Golf Tour, a Saudi-backed upstart, have proposed a merger that would see the two leagues combine their assets and operations. The deal, which is still in the early stages, would create a new golf league that would be very lucrative for those in power.
The PGA Tour is the most established golf league in the world and has been in existence for over 90 years. It is home to some of the biggest names in golf, including Jack Nicklaus, Gary Player, Arnold Palmer, Nick Faldo and Tiger Woods. The LIV Golf Tour is a new league that was founded in 2022 and has attracted players like Phil Mickelson, Brooks Koepka, and Dustin Johnson. It is backed by the Saudi Arabian government and has offered players huge signing bonuses to defect from the PGA Tour. The proposed merger would create a new combined golf league. But the merger has been met with mixed reaction and it is not a done deal just yet. The PGA Tour has previously said that it is committed to its current structure and that it is not interested in merging with LIV Golf. However, the proposed merger could put pressure on the PGA Tour to change its stance re LIV, the team format for tournaments, and the LIV golfers themselves. The proposed merger is still in the early stages, and it is unclear if it will be successful.
This deal is far from done and there will be many twists and turns to come. For instance, this merger could have a significant impact on many professional golfers. For some, it could even be the end of their careers. It is unclear at this point whether the players that defected would keep their huge signing bonuses, or whether those would be clawed-back, which is looking quite likely. It is possible that the two leagues will ultimately merge fully, but it is also possible that they will remain separate. Greg Norman, the LIV Golf CEO, has tried to reassure players, employees and fans alike, by saying that nothing will immediately change on the LIV tour. More significantly, there is a good chance that the US Justice Department, after their current investigation into the merger documents and structure, finds that this business arrangement violates US antitrust law and creates a monopoly situation whereby players, fans, media rights holders, sponsors, etc., will be forced to take or leave the prices/payments/deals offered by the PGA.
Of course, it could be argued that this was the precise problem with golf in the first instance and is exactly why LIV came about. This is definitely not over folks. Buckle in for a bumpy ride ahead.
