In the annals of golf history, June 6, 2023, will forever remain a significant date. A day that marked the beginning of an ambitious merger between the Tour and its rival. Initially, the merger was set to conclude by December 31, 2023. However, the golfing community, eager to see the best of the sport unite, remains in the dark about the finalization of the elusive $3B deal. One thing is certain: the strategic meetings are progressing, albeit with a few hitches.
One of the latest meetings, which took place at the White House between Jay Monahan and Yasir Al-Rumayyan, seems to have rocked the boat rather than steadied it. Al-Rumayyan, Governor of the Public Investment Fund (PIF), was taken aback by the PGA Tour’s proposal valuing LIV Golf at a mere $500 million, considering the colossal $5 billion PIF has already sunk into the league.
Interestingly, this valuation, which Al-Rumayyan deemed absurdly low, was viewed by some analysts as overly generous. This intriguing discrepancy was the focal point of a recent episode of The Varsity podcast, where Golf Channel’s Eamon Lynch offered his insights.
Lynch expressed his frustration with the valuation, labeling it as “comical” since, in his opinion, LIV Golf’s worth was far from the quoted $500 million. He elaborated, “They’ve literally shoveled $5 billion into a furnace and got nothing for it.” Lynch’s sentiments ring true considering that despite its popularity, LIV Golf hasn’t turned a profit. This entity, as a business, has proven to be a failure, with massive capital injections exceeding $1 billion to its UK arm alone. To add insult to injury, LIV Golf’s operating losses ballooned to $394 million in 2023.
Lynch was in disbelief when he learned of Al-Rumayyan’s deep offense at the White House meeting over the dollar assessment. He opined that there was a “colossal” gap between the face-saving valuation Al-Rumayyan desired and the sensible business proposal offered by the PGA Tour. Lynch was of the view that Al-Rumayyan should cut his losses and collaborate with the PGA Tour, considering their generous offer was likely the only viable way to break even in the future.
Despite the shock experienced in the White House meeting, Al-Rumayyan may have since regained his equilibrium. However, Jay Monahan, the PGA Tour commissioner, painted a very different picture of the conversation.
Monahan struck a far more optimistic note post-meeting than Al-Rumayyan’s reaction might suggest. He expressed confidence in the merger’s forward progress, remarking, “I view that meeting as a huge step and so I look at that very positively.” Monahan also hinted at the PGA Tour’s plans to integrate LIV Golf into their schedule, a move that didn’t sit well with PGA Tour loyalists.
The commissioner credited President Trump for helping to foster the dialogue between the two leagues and “bolstering” the merger conversation. Monahan stated that the Tour’s fan surveys indicated that about 70% of fans viewed reunification positively, and the league was doing everything possible to achieve this. He also confirmed that his team was fully committed to reunification.
The question now is, will Al-Rumayyan also see the light and embrace the concept of “reunification,” despite the initial shock of the offer? Only time will provide the answer.
