Liverpool FC’s owners could ruin PIF’s golf negotiations in a last-minute deal.
A major deal chased by Newcastle United’s owners could be about to be scuppered by Liverpool’s owners after months of talks.
Earlier this year, it was thought Saudi Arabia’s Public Investment Fund ended its ‘golf war’ with the PGA when it was shockingly announced its rival LIV would merge with the more established tour.
After months of negotiations and a probe by the US government, PIF and the PGA Tour are still working towards the December 31 deadline to finalise the deal. However, the PGA Tour sent a memo to its players on Sunday night to say the board has decided to further talks with the Strategic Sports Group (SSG), fronted by Fenway Sports Group, also known as Liverpool FC’s owners, as well as continuing its Saudi talks.
It’s believed that in laying out an alternative credible option, the PGA Tour has leverage over PIF. SSG has considerable sports investment experience in the US already, with Fenway Sports Group owning the Boston Red Sox alongside Newcastle United’s Premier League rivals. But, financially, they cannot compete with the Saudis. SSG’s investors have a combined net worth of around £40bn compared to PIF’s £617bn.
It could be the case that the PGA Tour backs both investors, with Newcastle United chairman and LIV governor Yasir Al-Rumayyan able to remain at the helm of the golfing world. Al-Rumayyan was voted the most influential person in sports business this year for his involvement in the LIV-PGA merger and it’s thought the three-way merger could embed him further all while creating new relationships with the American investors.
If the PGA Tour decides to go with the Strategic Sports Group, and drop PIF altogether, the rivalry with LIV Golf will most likely continue with the latter tempting golf’s biggest stars over with larger prize pots. Recently, the Saudis have been targeting younger players to defect over to LIV to bolster its position.
It’s likely both sides will agree to extend talks beyond the December 31 deadline to reach a resolution, as outlined in the initial framework.
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