PGA Tour avoids using the word 'merger' when shaking hands with LIV Golf

The PGA Tour dropped the word “merge” from its press release as its joint venture with the Saudi Public Investment Fund (PIF) — which owns LIV Golf League — was called a merger.

In English, "merge" is the action of "combining into one" which is equivalent to merging/consolidating/unifying in Vietnamese. According to the Merriam-Webster dictionary, "merger" is a noun that refers to any way/method of combining two or more organizations/entities.

On the morning of June 6, the PGA Tour used the word “merge” in a two-sentence summary, just below the headline of a press release about its joint venture with DP World Tour and PIF Saudi Arabia. The media, therefore, called it a “merger.” But by the afternoon of the same day, the word “merge” was no longer used in the PGA Tour website, and the summary was shortened to one sentence.

PGA Tour special envoy Jay Monahan will serve as CEO of the new organization after the PGA Tour partners with the LIV Golf League. Photo: AP

Golfweek sought to understand why the PGA Tour changed its wording and spokespeople Laura Neal responded on June 9. Neal said she was initially unaware of the edit and only learned after being briefed by the digital content team that the word “merge” was removed to make the interface clearer and the content more concise.

However, the Saudi PIF website until yesterday still used the first version and did not cut the "merge" like its American counterpart.

In terms of main content, both versions still state the cooperation method as "all commercial activities on the PGA Tour, DP World Tour and LIV Golf League as well as golf-related assets owned by PIF Saudi will be under one roof.

But according to a PGA Tour spokesperson, it's still not a merger.

"I know the media has been brief, but that's not accurate. The parent company of the PGA Tour remains a non-profit, tax-exempt 501c6 corporation. The newly formed entity will operate its own business, but will still be a member of the organization.

When the PGA Tour teamed up with PIF Saudi, the two sides also ended nearly a year of litigation in U.S. courts over alleged unfair competition and antitrust violations. But according to Golfweek , legal experts are warning that antitrust laws could still hamper the newly announced partnership, as it combines three major organizations into one legal entity with the potential for dominance.

The upcoming "common house" does not have a name yet, but the power structure has been finalized. PIF Saudi President - Yasir Al-Rumayyan holds the position of Chairman of the Board of Directors, and Jay Monahan - the most powerful figure on the PGA Tour - holds the position of CEO.

Initially, PIF will be the sole investor and will have veto power over the admission of additional shareholders or capital into the PGA Tour, DP World Tour and LIV Golf League. In terms of reciprocal authority, PGA Tour will appoint the majority of the Board of Directors and hold the controlling vote in all operations of the joint venture. The intended role of DP World Tour has not been mentioned.

National Emblem

Source link