Some details about the shocking merger of the Saudi-backed LIV Golf and the 94-year-old PGA Tour have revealed that the Saudis will infuse a whopping $2 billion into the concern, but the PGA Tour will call the shots.
According to reports, the Saudi’s Public Investment Fund (PIF) will take a 20 percent stake in the merged entity and will hand over the $2 billion as its investment in the deal, the New York Post reported.
But, the PGA Tour will maintain its control of the new board and have the majority position, insiders told the paper. Saudi Arabia’s sovereign wealth fund, Yasir Al-Rumayyan, will join the board as the chairman.
Investment Bank Allen & Co. has been tapped to assess the plans to determine the valuation of the new — so far unnamed — venture, a process expected to be completed by the end of the year.
Estimates place the valuation at around ten billion, but that could change after the bank’s review of assets, earnings, and potential earnings.
Golf Digest reported that The PGA Tour, a non-profit organization, generated $1.5 billion in revenue in 2022.
The new venture, though, will be a for-profit organization.
PGA Tour boss Jay Monahan says the deal was hammered out secretly over the last two months and was spearheaded by PGA Tour board member Jimmy Dunne.
The deal was announced on Tuesday, shocking the golf world, especially since PGA Tour officials denounced the LIV Golf “blood money” and its links to “dictators.”
A group representing families of victims of the terror attacks on 9/11 blasted the PGA Tour for becoming “Saudi shills” and working with those they say had a hand in the terror attacks that took the lives of nearly 3,000 Americans.
Others also went on the attack. Barstool Sport chief Dave Portnoy slammed PGA Tour boss Jay Monahan as a “scumbag” for joining with the Saudis. And Golf Channel commentator Brandel Chamblee said news of the merger was “One of the Saddest Days In the History of Professional Golf.”