The Saudi-backed, for-profit LIV Golf is merging with the non-profit PGA. The PGA has been the leader in golf events, holding tournaments in not just North America, but Europe and Asia as well. LIV was created in 2021 to counter traditional golf events, introducing high-energy crowds, loud music, looser dress codes, etc.
The merger seeks to create an entirely new entity, which would combine the assets of the two organizations. PGA would still exist as a non-profit and retain control over its tournaments. PGA commercial business and rights (for example, televised tournaments) would be owned jointly under the new entity.
The merger attracts the PGA because of LIV’s ability to produce funding and draw in a younger crowd.
The PGA policy board has yet to approve the merger. Through 2023, both entities are still separate. The potential of a merger is causing confusion and outrage amongst PGA loyalists, who were behind the PGA’s initial opposition to LIV due to its Saudi roots.
The Justice Department is also examining the deal to ensure no anti-trust laws will be broken. The DOJ was already investigating the PGA and other golf bodies for anti-competitive behavior, even before the merger news came out. People behind the merger deal, like Jay Monahan - believe that the merger will benefit the golf industry as a whole, which should make regulators happy.
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