Representatives of the PGA Tour visited Washington, D.C., on Tuesday for a hearing about its planned partnership with the Public Investment Fund of Saudi Arabia. Representatives of the Public Investment Fund did not appear. LIV Commissioner Greg Norman, who was also invited, did not attend. Guy Monahan, who was on temporary leave from his position as tour commissioner, was not in attendance.
However, during the hearing, 276 pages of documents were shared by the US Senate Permanent Subcommittee on Investigations revealing the nature of the partnership, its genesis, and early negotiations. Proposals were contained in documents from one side or the other (or third party) which included eye-catching transaction details. One proposal would drop the executive role for Greg Norman. Another proposal would paint the LIV Golf team ownership of Tiger Woods and Rory McIlroy. The third proposal would provide a prestigious golf membership to the fund’s governor, Yasser Al-Rumayyan. While most of the proposals were not included in the framework agreement (and many may not have been seriously considered), the documents provide a window into the communication and negotiation process.
Here are nine things we learned from the investigation.
1. The Public Investment Fund (PIF) reached out first in an important way
It all started on December 8, 2022. Subject line: LIV/PGA TOP PRIVATE AND Confidential
“Dr. Mr. Dunn,” the e-mail began. “I am writing to you in the strictest confidence.”
It came from Roger Devlin, British businessman and president of the Sunningdale Golf Club, around 10pm on the east coast. He was invited by Yasser Al-Rumayyan to start some kind of negotiations between the warring parties, either in the United States or in London.
While all of this comes from a long email, Devlin made it clear that Yasir Al-Rumayyan was willing to consider, as part of a partnership, a “balancing fund” for players who have remained loyal to the PGA Tour to be more integrated. On the flip side, LIV players will gain access to PGA Tour events again, as well as world ranking points.
This was, according to the investigation, and Firstly point of contact between the parties. “I’d like to get a cup of coffee first,” Jimmy Dunn replied, getting to know Devlin. They struggled to get that coffee to work, but in the end, according to emails, Keith Bailey, CEO of DP World Tour, managed to bridge the gap between the parties and start the partnership process.
2. Rory McIlroy met the PIF leader on his own
As part of the email referred to above, Devlin explained to Dunn that he had brokered a meeting between McIlroy and Rumayan, during which several things were clearly discussed. One of them was a ‘Fall’ IPL’-style team event, a reference to the Indian Premier League in cricket. Not many details were given in the email about McIlroy’s thoughts, but one thing was agreed upon: The top pros aren’t interested in playing more than 26 events. So a schedule that includes 40 PGA Tour events, 14 LIV events, and dozens of DP World Tour events has always presented the dilemma of dividing up the top talent.
3. THE BEST OF BOTH WORLDS SHOW MADE SOME BIG REQUESTS
The first meetings between the PIF and the PGA Tour, according to the documents, took place on April 23-24 in London. During those meetings, Amanda Staveley — CEO of BCP Capital Partners, which helped broker much of the business on behalf of the PIF — shared a presentation with a small group of people. Among them was Al-Rumayyan and a few other people from the Public Investment Fund. The meeting was attended by Michael Klein, a banker who has advised Saudi Arabia in his career. From the PGA Tour, there were Monahan, Ed Herlihy, and Jimmy Dunne.
Part of the presentation, which was shared digitally in the following days, was a proposal for a partnership between the two parties. The first point of the offer: an agreement to stop litigation. The other key point of the proposed partnership is the “supplemental” schedule that would prevent LIV events from taking place during elevated PGA Tour events, and would also protect LIV from being relegated to the fall in what was called “silly season”.
There were clear desires shared as “core principles/goals” in this presentation, including LIV golfers earning world ranking points again and Ryder/Presidents Cup playing status. But among the most important proposals was the integration of golfers in particular.
4. Tiger Woods and Rory McIlroy were hot commodities
There’s no surprise in that statement above, but Woods and McIlroy, two of the PGA Tour’s staunchest advocates and detractors of LIV Golf, have been imagined as two staples in a partnership by LIV.
“LIV proposes that Rory McIlroy and Tiger Woods own teams and play in at least 10 LIV events,” reads the presentation under “Proposals for Consideration.” How much was considered? According to sources familiar with the process, these very points were soon rejected. And based on McElroy’s press conference in early June, when he said, “I still hate LIV,” it’s certainly not likely.
However, another piece to consider is a “LIV Team World Event in large-scale LIV style” that will include LIV players, PGA Tour stars, and even LPGA players. It will include 16 live TV teams and projects. The document says that qualifying for the event will take place in Saudi Arabia, with the final event taking place in Dubai.
5. APPLICATION FOR AUGUSTA NATIONAL MEMBERSHIP
Perhaps the most striking item included in the Best of Both Worlds presentation shared with the PGA Tour leadership was having Yasir Al-Rumayyan wear a green jacket. A separate point mentioned that Al-Rumayyan should be considered becoming an International Golf Association director, a position held by the likes of Bailey, Monahan, LPGA Tour commissioner Molly Marco Semaan and the heads of the PGA of America. (Seth Waugh) and USGA (Mike Whan), among others.
Al-Rumayyan was sprayed on the back end to that point as Al-Rumayyan gained membership in Augusta National as well as R&A, based in St Andrews, Scotland. No other similar requests have been made and the green jacket seems like an unlikely bargaining chip on the PGA Tour as well.
6. THE BIG AD WAS A Scramble
The first word of the partnership came on CNBC in an interview with TV host David Faber on Tuesday, June 6, but that wasn’t supposed to be the case. As of the Friday before the announcement, the plan has been for a long, well-rounded period of days where Jay Monahan will lay out the plan for the relevant stakeholders on the PGA Tour side.
According to documents outlining the recommended communications approach between the PGA Tour and the PIF — which was sent to Keith Pelley — the news will be shared internally first with the five player managers on the Tour Policy Board in a call with Monahan. Later that afternoon, various stakeholders on the tour such as players, tournament officials, staff and media partners will receive a press release full of plans.
Over the weekend, plans changed dramatically. The announcement will come Tuesday morning, according to an email exchanged by Laura Neal, the tour’s communications executive. Players will find out shortly before the 10:30 AM announcement. Just Later Will the recorded CNBC interview air? At some point that day, “supporting statements” will come from Roger Goodell, NFL commissioner, Fred Ridley, chairman of Augusta National, and Stefano Domenicali, chief executive of F1.
Instead of those delayed plans, catch up with the whole world via CNBC. I found out about the vast majority of PGA Tour players via Twitter. Cameron Young found out when the CEO of RBC told him. Goodell and Domenicali have not released statements.
7. The PGA Tour wanted Greg Norman out
In late May, as negotiations for an agreement continued toward the finish line and the completion of the framework agreement structure, Ed Herlihy sent a late request to Michael Klein, PIF Chief Representative. Greg Norman will have to go once LIV Golf is managed by the PGA Tour.
Herlihy issued a “side letter” to Klein stating that “the services of Greg Norman and Performance 54,” the golf marketing firm that helped launch LIV, “will cease upon management’s transition to the PGA Tour set forth in the Framework Agreement and at any event no later than one month.” after him.”
Around the same time, the investigation revealed, letters between Jay Monahan and PGA Tour COO Ron Price indicated that “it would be better” if Norman was relieved of his duties within one month of signing the framework agreement rather than “within one month” of the Tour. PGA with LIV administration, which can take months and months.
The new management of LIV Golf has clearly been a focal point for Monahan, as evidenced by emails between Dunne and Herlihy. Nine days before submitting this side letter, Herlihy emailed Dunn saying “I brought up the idea with Jay of you to oversee LIV going forward. He really liked it.”
“Me and you,” Dunn replied, before Herlihy said, “Sure. Both of us are supposed to say.”
It is still not clear whether the side letter of agreement was signed by both sides.
8. The framework agreement has gone through several drafts
Over the course of about two weeks, the framework agreement — which dropped litigation between the parties and made its intentions known — went through eight reviews before it was finalized. Every few days, each side revises the joint document to adhere to their wants and needs, based on what was discussed in the meetings.
In the beginning, it was called a “Long Term Strategic Partnership Agreement” which definitely shares a common verbiage in the tour’s strategic alliance with the DP World tour. The first draft, as prepared by the PGA Tour, announced that the tour would immediately become the “manager” of all golf-related PIF investments, “including the LIV and the Asian Tour.” This wording was eventually withdrawn. Also from the first PGA Tour draft was a promise that the operations of the LIV would not be terminated by the tour before the conclusion of the 2023 season. This was also removed during two weeks of revisions.
At this point, we know what all of the drafts looked like, as well as many revisions between the parties. This was all laid out as part of the framework agreement, which will be moot once the two sides reach final agreements. At the moment, thanks to the investigation revealing the documents, we have the wishes of each side, which for the PIF/LIV side include dreams of the first World Team Golf Championship event(s) at the end of the year, including the closing in Saudi Arabia (KSA). Saudi Arabia (Arabian Peninsula).” His inclusion in several drafts suggests that it was a serious enough consideration that may still be on the table.
Also among the PIF/LIV drafting wishes are OWGR recognition of LIV events, including retrospective points, automatic qualification to the major tournaments for top 24 players, two new LIV teams to make up PGA Tour players, as well as opportunities to qualify for LIV players between rounds different. It remains to be seen whether or not both sides will continue to negotiate these terms – though many of these points are outside the Tour’s control, anyway. It is not included in the final framework agreement.
9. The not-to-be-disparaged agreement arrived too late
The latest wave of reviews occurred in the last week of May, according to emails shared by the investigation. During the PIF’s third review opportunity, a non-discrimination clause was added to the ninth paragraph of the agreement:
Each party agrees and warrants that it will not at any time, directly or indirectly, create, post or inform any person or entity or in any public forum any remarks, comments or statements that are defamatory or disparaging to the other party and its affiliates and owners. ultimate beneficiaries, their businesses, directors, employees, officers, shareholders, members or advisors.”
This paragraph comes without much context. However, it is worth noting that in the wake of 13 months of press conferences and public statements by players, agents, tour operators and others, thorny geopolitical issues have become central to the world of golf.