On June 6, a shocking announcement was made by the PGA Tour sending reverberations around the golf world.
The organization, along with Saudi’s Arabia’s Public Investment Fund (PIF) and the DP World Tour (formerly known as the European Tour), had signed an agreement to combine PIF’s golf-related commercial businesses and rights – including the Saudi-backed LIV Golf series – with the commercial businesses and rights of the PGA Tour and DP World Tour into a new, collectively owned, for-profit entity.
On Monday, multiple news outlets started to circulate the framework agreement that had been quietly made by those groups. CNN has since obtained a copy of the framework agreement.
The document was sent to Congress on Monday, according to a source with knowledge of the framework agreement.
The framework agreement states the three groups will establish a for-profit Limited Liability Company (LLC), referenced in the agreement as “NewCo.”
The document says the PGA Tour and DP World Tour will each “contribute commercial businesses/rights,” while the PIF “will contribute their golf-related investments and assets, including LIV, to NewCo along with a cash investment, in exchange for the issuance to PIF of an equity ownership interest in NewCo to a fair value mutually agreed by the parties.”
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