PGA Tour and PIF reportedly extending deadline to reach conclusive agreement

One of the major storylines in the world of golf in 2023, the framework agreement between the PGA Tour and the Public Investment Fund (PIF) of Saudi Arabia, may not come to fruition on schedule. Both parties had set a deadline of December 31.

The Telegraph reported on Thursday, December 28, that the PGA Tour would shortly be announcing an extension of the deadline for negotiations on the framework agreement. The newspaper quoted a source it identified as "a leading industry figure," without mentioning the name.

The source above stated the following:

"There's no chance a deal can be announced by the end of this week. But, maybe by the end of March."

If confirmed, this new deal could be finalized days before the main tournament of the world circuit, The Masters. The Augusta tournament will be played between April 11 and 14, 2024.

Since the framework agreement was announced, 31 December 2023 was set as the deadline to conclude negotiations. The validity has been reiterated again and again over the past seven months.

The framework agreement was made public on June 6 this year. Among the essential points, contained therein, are the following (via ESPN):

"Creating a global golf partnership and of growing and promoting the game of golf globally, ending divisions and unifying the game of golf..."

"The framework outlines a future for professional golf under the PGA Tour's leadership that benefits players, fans, and the sport..."

"The PGA Tour and the DP World Tour will work together in an effort to determine how to best integrate team golf into PGA Tour and DP World Tour events going forward."

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PGA Tour, LIV Golf, and the framework agreement

Despite the negotiations related to the framework agreement, PIF has not stopped supporting LIV Golf; on the contrary, it has been quite the opposite. The circuit has just signed Jon Rahm to a multi-year contract for a reported $566.4 million, which is inarguably a long-term investment.

Therefore, arguably one of the best-case scenarios that can be predicted about the PGA-LIV saga is that both circuits will find a way to coexist in a mutually beneficial way, or at least without disrupting each other.

Another potentially possible scenario is that negotiations break down and the PIF withdraws altogether. The American circuit is also negotiating with other investors grouped in the so-called Strategic Sports Group (SSG), so its hands are not completely tied.

Among the potential investors grouped in the SSG are major institutions in the sports business industry. These include Cohen Private Ventures, Fenway Sports Group, and HighPost Capital.

Also included are prominent individuals from the same industry, such as Arthur Blank, owner of the Atlanta Falcons and co-founder of Home Depot, and Mike Gordon, president of Fenway Sports Group.