It was predictable. When the PGA Tour, the Saudi Sovereign Fund and the DP World Tour announced the signing of the framework agreement for the birth of a new entity intended to manage the future of professional golf, the timescales assumed for defining the details appeared very short.
Pga Tour, situation
The signatories of the agreement themselves were aware of this, so much so that both the PGA Tour and the DP World Tour have published their calendars for the next season. Not to mention LIV Golf, an emanation of the PIF, which, despite the death knells that say it is nearing the end of its short history, continues in its development and programming activity.
Confirmation of this status quo came from Bloomberg. According to the giant of global news agencies, the deadline set for December 31, 2023 is destined to slide forward due to a series of issues that must be resolved before moving on to the operational phase.
The main obstacle is represented by the preventive control and monitoring activities that have been implemented by the United States government. We are still following the investigation launched at the time by the Senate Permanent Sub-Commission of Inquiry, which does not appear to be close to its conclusion.
But the Bloomberg report introduces another issue that hinders compliance with the scheduled times, which until now had remained under the radar. PGA Tour players are an active part of the negotiations. A couple of months ago, Jay Monahan had hinted at involvement in the integration process of the investment bank Raine Group.
Now the role of the merchant bank is finally clear: it provides advice to Tour players who are evaluating how to protect themselves within the new entity that will also control their destinies. The path that would have been identified is that of attributing shares in the NewCo to the players themselves (or, more likely, to some "important" figures, such as Woods and McIlroy).
Bloomberg specifies that this has nothing to do with the compensation hypothesized for PGA Tour players who, at the time, rejected LIV Golf's offers. This would be a safeguard measure.