Global Courant
The PGA TOUR logo is seen during the second round of the Farmers Insurance Open at Torrey Pines South on January 29, 2021 in San Diego, California.
Ben Jared | Pga tour | Getty Images
The merger agreement framework of the PGA Tour and Saudi Arabia-backed LIV Golf says a for-profit subsidiary of the US golf organization will be created to manage commercial investments and assets for all tours, according to a copy released Monday by Reuters. rated.
The PGA Tour will have a permanent controlling interest in the subsidiary’s board of directors, regardless of Saudi investment, the framework said.
The PGA Tour, DP World Tour and rival Saudi Arabian-backed LIV circuit, which has been embroiled in a bitter battle dividing the sport, announced an agreement earlier in June to merge to form one unified commercial entity.
The framework agreement also ends the disputes between the two parties.
The LIV Golf series is funded by the Saudi Arabia Public Investment Fund and critics have accused it of being a means for the country to improve its reputation as it faces criticism over its human rights record.
Yasir Al-Rumayyan, the governor of Saudi Arabia’s Public Investment Fund, will be the chairman of the new entity, dubbed NewCo in the context, while PGA Tour Commissioner Jay Monahan will be the CEO.
The framework will likely be a focus of a U.S. Senate panel on July 11, where Monahan, Al-Rumayyan and LIV Golf CEO Greg Norman have been invited to testify.
The proposed deal was met with strong criticism in Washington.
US Senator Richard Blumenthal has asked the PGA and LIV for communications and documents regarding their planned merger, citing concerns about the Saudi government’s role in the deal and the risks posed by a foreign government agency taking control of the sport takes over.
Blumenthal, a Democrat who chairs the Senate Permanent Subcommittee on Investigations, demanded to know how the nonprofit came to an agreement with LIV Golf, a professional body.
He also wanted to know how a newly formed entity will be structured and managed, including how the PGA Tour plans to maintain its tax-exempt status.
(TagsToTranslate)Nonprofit Business & Finance
