Battling Golf Organizations Suddenly Reach an Agreement

Big golf organizations that were once enemies in court are now partners in business.

The PGA Tour, Europe Tour and Saudi Arabia's Public Investment Fund (PIF) announced on Tuesday that they are merging¹ their golf businesses into a single new company.

The announcement was so shocking that not even PGA Tour players knew about the move.

Before the announcement, the PGA Tour had been fighting the Saudi-supported LIV Golf in court for more than a year.

The PGA Tour asked a U.S. federal court to require Yasir Al-Rumayyan, the governor of the PIF, to give evidence in a legal case.

Now, all lawsuits² are being dropped. Al-Rumayyan will take a seat on the PGA Tour board of directors. He also will be chairman of the new business involving three golf organizations.

Here are some details about this very unusual sports deal:

What is LIV Golf?

LIV Golf is a sports organization supported by Saudi Arabia's sovereign wealth fund that held its first event in 2022. LIV Golf has been a direct competitor to the PGA Tour. LIV Golf has tried to reinvent the structure of professional golf. This includes changes such as 48-man tournaments in which players with high scores are not cut and which offer up to $25 million in prize money. There are also teams.

Australian Greg Norman, a former PGA Tour star, is the chief of LIV Golf. The organization succeeded in getting 13 former major champions, including Americans Phil Mickelson and Dustin Johnson, to play in their events. As a result, those stars were suspended by the PGA Tour.

Why did Saudi Arabia want to create a golf league?

Saudi Arabia has been investing in sports and entertainment in recent years. It is all part of Crown Prince Mohammed bin³ Salman's plan called "Vision 2030" to reduce Saudi Arabia's dependence⁴ on oil. Golf appeared to be a natural fit.

However, the move has led to accusations⁵ of "sportswashing." That is an attempt to use sports investments to take attention away from human rights abuses.

Why are PGA Tour players angry at LIV players?

LIV Golf was trying to get all the top players in the world ranking. A majority of them turned down money offers estimated at $100 million or more to stay loyal to the PGA Tour.

Northern Irish golfer Rory McIlroy accused LIV players of "taking the easy way out." American Tiger Woods said they "turned their backs" on the tour that made them famous. The competition also caused a great divide in golf because LIV players were not permitted to play on the PGA Tour. Now some players are angry that LIV players might return without consequences.

Wednesday, McIlroy said he was hopeful the merger⁶ would use Saudi money "the right way."

"Whether you like it or not, PIF and the Saudis want to spend money on the game of golf. They want to do this, and they weren't going to stop," he said.

Why did the merger happen?

Jay Monahan is the commissioner⁷ of the PGA Tour. Monahan had refused to meet with the Saudi Golf group for two years. But a few months ago, PGA Tour board member Jimmy Dunne organized a meeting. Monahan, European Tour chief Keith Pelley and Al-Rumayyan began working out an agreement.

Monahan found that LIV Golf had a deep supply of money and meant to continue. He said golf was too divided and had too much tension. It was best for everyone to come together.

The PGA Tour will remain a non-profit organization under U.S. tax law. The PGA Tour and European Tour also will keep the same tour events and logos.

Where will LIV Golf players play next year?

LIV Golf will finish its second season this year as planned. After that, the next steps remain unclear. Monahan said officials will study how to bring team golf into the PGA Tour. LIV Golf was trying to turn its 12 teams into franchises⁹. However, no one had financially supported a team.

But it is unlikely that if LIV Golf still exists, players can play on the other tours. That is what led to the dispute and court cases in the first place.

Words in This Story

merger — n. the act or process of combining two separate businesses with different ownership into one

sovereign wealth fund –n. an investment fund that is run and operated by a government

tournament –n. a competition with a series of contests in which players or teams try to win a championship over the course of days or weeks

entertainment –n. performances or games meant to be watched for enjoyment¹⁰

consequences— n. (usually pl.) something that must be dealt with as a result of an earlier action or position

logo — n. a picture or representation that stands for and identifies a company

franchise⁸ — n. a team that is part of a professional sports organization which is owned and has certain rights and responsibilities

1 merging   

合并（分类）

参考例句：

• Many companies continued to grow by merging with or buying competing firms. 许多公司通过合并或收买竞争对手的公司而不断扩大。 来自英汉非文学 - 政府文件
• To sequence by repeated splitting and merging. 用反复分开和合并的方法进行的排序。

2 lawsuits   

n.诉讼( lawsuit的名词复数 )

参考例句：

• Lawsuits involving property rights and farming and grazing rights increased markedly. 涉及财产权，耕作与放牧权的诉讼案件显著地增加。 来自辞典例句
• I've lost and won more lawsuits than any man in England. 全英国的人算我官司打得最多，赢的也多，输的也多。 来自辞典例句

3 bin   

n.箱柜；vt.放入箱内；[计算机] DOS文件名:二进制目标文件

参考例句：

• He emptied several bags of rice into a bin.他把几袋米倒进大箱里。
• He threw the empty bottles in the bin.他把空瓶子扔进垃圾箱。

4 dependence   

n.依靠，依赖；信任，信赖；隶属

参考例句：

• Doctors keep trying to break her dependence of the drug.医生们尽力使她戒除毒瘾。
• He was freed from financial dependence on his parents.他在经济上摆脱了对父母的依赖。

5 accusations   

n.指责( accusation的名词复数 )；指控；控告；（被告发、控告的）罪名

参考例句：

• There were accusations of plagiarism. 曾有过关于剽窃的指控。
• He remained unruffled by their accusations. 对于他们的指控他处之泰然。

6 merger   

n.企业合并，并吞

参考例句：

• Acceptance of the offer is the first step to a merger.对这项提议的赞同是合并的第一步。
• Shareholders will be voting on the merger of the companies.股东们将投票表决公司合并问题。

7 commissioner   

n.（政府厅、局、处等部门）专员，长官，委员

参考例句：

• The commissioner has issued a warrant for her arrest.专员发出了对她的逮捕令。
• He was tapped for police commissioner.他被任命为警务处长。

8 franchise   

n.特许，特权，专营权，特许权

参考例句：

• Catering in the schools is run on a franchise basis.学校餐饮服务以特许权经营。
• The United States granted the franchise to women in 1920.美国于1920年给妇女以参政权。

9 franchises   

n.（尤指选举议员的）选举权( franchise的名词复数 )；参政权；获特许权的商业机构（或服务）；（公司授予的）特许经销权v.给…以特许权，出售特许权( franchise的第三人称单数 )

参考例句：

• TV franchises will be auctioned to the highest bidder. 电视特许经营权将拍卖给出价最高的投标人。 来自《简明英汉词典》
• Ford dealerships operated as independent franchises. 福特汽车公司的代销商都是独立的联营商。 来自辞典例句

10 enjoyment   

n.乐趣；享有；享用

参考例句：

• Your company adds to the enjoyment of our visit. 有您的陪同，我们这次访问更加愉快了。
• After each joke the old man cackled his enjoyment.每逢讲完一个笑话，这老人就呵呵笑着表示他的高兴。