LIV Golf (Saudi PIF), "Mergers," and More

[Moxley]

1 hour ago, iacas said:

 

Congrats. You've made one of the dumbest non-swing-theory posts in TST history. 😛

I see you say similar things about many posts that you disagree with, but if you were right about that, it would be self evident and not require you to point it out. 

[Hardluckster]

It seems as though Rory had previous knowledge that a deal may have been in the works. 
 

Newcastle chief Amanda Staveley's role in PGA Tour-LIV Golf saga after Rory McIlroy chat - Mirror Online

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The PGA Tour and LIV Golf have merged after a year of war between the two competitions, with the latter enlisting...

 

[saevel25]

23 minutes ago, Hardluckster said:

It seems as though Rory had previous knowledge that a deal may have been in the works. 

Newcastle chief Amanda Staveley's role in PGA Tour-LIV Golf saga after Rory McIlroy chat - Mirror Online

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The PGA Tour and LIV Golf have merged after a year of war between the two competitions, with the latter enlisting...

 

Broker a truce does not mean knowledge of merger. That article clearly lacks statements or other facts to say that Rory knew of the merger. 

[Beastie]

So Bloomberg is reporting that the US DoJ  is gonna investigate the merger re anti trust laws. 
Although I seem to remember them being involved months ago anyway, so it is probably to be expected

Edited June 7, 2023 by Beastie

[chspeed]

Since more news will clarify things, but we're having fun speculating,  here is some speculation on what is happening. Please don't hate, it's only speculation for fun!

1. Obvious, but this is hardly a merger. It's an acquisition as others have pointed out.

2. The PGAT and DPWT sold because they don't have the cash to compete with LIV payouts and were on the verge of losing a bunch more high-profile players to LIV in the coming year.

3. As a sovereign wealth fund, PIF didn't like LIV management (Norman, etc.) and wanted a good operator. They are playing a very long game, and know that the PGAT can run a tour a lot better than LIV ever could.

4. The only way the PGAT and DPWT can sell this to players is if there is A LOT of money that will be taken off the table. In other words, the Rorys of the PGAT will cash out big and get deals similar to those that left the PGAT in the past year or two.

5. As part of the terms, the PIF will fade into the background, and all parties that cash out (including current PGAT players and officials) will agree not to mention them or badmouth them.

 

12 minutes ago, Beastie said:

So Bloomberg is reporting that the US DoJ  is gonna investigate the merger re anti trust laws. 
Although I seem to remember them being involved months ago anyway, so it is probably to be expected

Totally. Everyone and their mothers will be investigating this. I would be impressed if this clears all the world's different organizational bodies.

[klineka]

12 hours ago, Rick Graham said:

Great News, for all of golf get all the best players playing against each other, feel good for Greg Norman

So you think the fact that the commissioner of the PGA Tour (allegedly a player run organization) made a complete 180 and joined forces with the very people he spent the last year openly and harshly criticizing while not notifying any players that this was going to happen is "great news"?

Why do you feel good for Greg Norman? He wasn't notified of this until after a deal was already signed. He's clearly not a decision maker.

[Denny Bang Bang]

I think what everyone here is missing is that Jay Monahan fears Koepka (both of them) 😅

[snapfade]

I was watching Geoff Ogilvy's interview after he came out of the meeting and he said it sounded as if this got leaked out before it was supposed to be formally announced and they had to act. Then it seems as this was 7 weeks in the making. I was kind of nonchalant about it really. But, that was/is dirty pool. I don't see how Jay Monahan can talk one thing for month after month then do a complete 180, and have the nerve to address the players face to face. Now there's a story of how the DOJ is looking into the Donalds ties with LIV. This is just getting started. If you haven't seen it yet, check out Brandel's response. It's quite moving, you can see the disappointment. I'll continue to poke fun at the guy but I think that piece spoke volumes on the whole situation. 

[iacas]

1 hour ago, chspeed said:

1. Obvious, but this is hardly a merger. It's an acquisition as others have pointed out.

I agree it is not a merger, but it wasn’t an acquisition either.

2 hours ago, Moxley said:

I see you say similar things about many posts that you disagree with, but if you were right about that, it would be self evident and not require you to point it out. 

That’s not the first thing you’ve gotten wrong today. And I get to share opinions too pal.

It is evident to most.

[DeadMan]

This is a good summation of the whole thing, I think:

The Cowardly End of Golf’s Civil War

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The PGA Tour announced Tuesday that it will join with LIV Golf and the DP World Tour to become a new entity funded by the Saudi Arabia Public Investment Fund. What this signals for each specific tour is unclear, but the...

Also, Sally Jenkins has an interesting point. The chair of the PGA Policy Board, who was apparently negotiating the deal, also is a part of the law firm advising on the deal:

PGA Tour’s deal with LIV Golf benefits someone, but not the players - The Washington Post

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Golf’s new world order is good for someone, but is it really the players?

(That article may be paywalled, so sorry for everyone who can't read it)

[iacas]

I want to say to that… "Who cares (except Andy)? He didn't get it done. Others did."

[Pretzel]

15 hours ago, iacas said:

I don't think you know what the terms are. To me sponsor is not the same as owner. I've had sponsors here at TST with the first right of refusal… they don't "increase their investment stake" by choosing to spend more or decrease it by spending less: they're not owners.

 Wrong, this is literally straight from their press release on the matter:

Quote

PIF will initially be the exclusive investor in the new entity, alongside the PGA TOUR, LIV Golf and the DP World Tour. Going forward, PIF will have the exclusive right to further invest in the new entity, including a right of first refusal on any capital that may be invested in the new entity, including into the PGA TOUR, LIV Golf and DP World Tour. 

They have an ownership stake in the merged company, they aren't simply a sponsor. They will be the title sponsor as well, but they're a sponsor with an ownership stake and the only company allowed to invest further into the joint venture (with the exception being other investments that they approve of).

Edited June 7, 2023 by Pretzel

[iacas]

1 minute ago, Pretzel said:

 Wrong, this is literally straight from their press release on the matter:

And I'm saying that they don't just get to do that whenever they want. They can be asked to increase their investment, and get the first right of refusal should the new entity want/need/seek more capital.

Furthermore, that doesn't necessarily increase their ownership stake.

[boogielicious]

Apparently Rory found out about it from Jimmy Dunne at 6:30 am yesterday.

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His statement was on Instagram.

https://www.instagram.com/reel/CtMV9QiA66p/

[Zeph]

Rory’s on board then.

Quote

…it’s going to be good for the game of professional golf and secures it financially (sic).

Was the game of professional golf in financial distress today or were the outlooks that it would be in the near future?

[turtleback]

4 hours ago, Moxley said:

I see you say similar things about many posts that you disagree with, but if you were right about that, it would be self evident and not require you to point it out. 

It IS self-evident.

[Darkfrog]

1 minute ago, Zeph said:

Rory’s on board then.

Seemed like reluctantly though. He also said something about mixed emotions, and he didn't look particularly elated.

[Zeph]

3 minutes ago, Darkfrog said:

Seemed like reluctantly though. He also said something about mixed emotions, and he didn't look particularly elated.

That’s expected. Him gobbling over this would seem weird. Like if Monahan had first criticized LIV heavily and then turned to join them a year later. That would just seem off.