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PGA Tour COO Ron Price provides ‘clear’ contradictory information ahead of Tuesday’s Senate hearings

July 10, 2023
in Sports
PGA Tour COO Ron Price provides ‘clear’ contradictory information ahead of Tuesday’s Senate hearings
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The PGA Tour is headed to Washington, and not for a golf tournament.

On Tuesday, Ron Price, Chief Operating Officer of the tour, and PGA Tour Policy Board Member Jimmy Dunne will testify before the Senate’s Permanent Subcommittee on Investigations (PSI).

Dunne helped negotiate the PGA’s deal with the Saudi Arabian Public Investment Fund (PIF), the reason why the hearing is taking place in the first place.

Politicians have questioned the legality of this agreement, citing antitrust laws and national security concerns since the PIF is a sovereign wealth fund of a foreign entity.

Hence, before Tuesday’s hearing, Price drafted an Op-Ed published by The Athletic Monday that details the argument the tour will make before the PSI.

“Due to the confidential nature of negotiations surrounding the framework agreement, much of the initial reaction has been negative, colored by misinformation or misunderstanding,” Price wrote.

“That’s something we take full ownership of and deeply regret. Moving forward, we firmly believe that the more the facts are discussed and understood, the further our constituents can support a potential definitive agreement—if reached—and we look forward to the positive and lasting impact on all levels of our game.”

The framework agreement, signed on May 30 but not made public until Jun. 6, provided vague details about the future of men’s professional golf.

PGA Tour, Rickie Fowler, Collin Morikawa, Rocket Mortgage Classic

DETROIT — Collin Morikawa congratulates Rickie Fowler after his winning putt in a three-way playoff during the final round of the Rocket Mortgage Classic at the Detroit Country Club on July 2, 2023

Photo by Jorge Lemus/NurPhoto via Getty Images

In the following days, reports emerged on who would have control: PGA Tour Commissioner Jay Monahan or Yasir al-Rumayyan, the governor of PIF.

Some reports indicated that Monahan will assess LIV Golf’s future and determine if it even exists after this season. It was later reported that al-Rumayyan told LIV Golf that the breakaway league was not going anywhere.

That assertion has been backed up by numerous players, including Phil Mickelson. As more time has passed, the line from Monahan about ending the division in golf sounds more and more like an empty promise.

Yet, despite all of the unknowns, Price reassured the public that this deal will benefit golf in the future.

“The agreement provides clear, explicit, and permanent safeguards that ensure the PGA Tour will lead the decisions that shape our future and that we’ll have control over our operations, strategy, and continuity of our mission,” Price wrote.

“If we get a final agreement, it will allow us to further invest in the players who define our sport and the events, venues, communities, and technology that bring it to life. Working in partnership with the membership and Policy Board, we are stewards of the organization’s long-term health and leadership. Weighed against the prospect of a continued, unsustainable battle that threatened our very existence, given the safeguards that guarantee our self-determination and the possibilities afforded by new investments, ‘yes’ was the clear answer to the framework agreement.”

Price admits that the PGA Tour could not compete against the over $720 billion in assets that the PIF reportedly has.

But he also notes that the PGA Tour will have control of operations.

He later states that “this is not a merger,” something that has confused the sporting world ever since this announcement became public knowledge on Jun. 6.

Price further explained this ordeal:

“The PGA Tour remains intact. The subsidiary—PGA Tour Enterprises—will include PIF as a non-controlling, minority investor, as they are in many other American businesses,” Price explained.

“PGA Tour Enterprises will be led by a board of directors. The majority of that board will be appointed by the PGA Tour, and that entity will be run by a CEO. That CEO will be PGA Tour Commissioner Jay Monahan.”

“The PGA Tour’s controlling interest on that board of directors will remain constant going forward, regardless of the size of the PIF’s initial or any future incremental investments. The board of directors will also have the ability to decline any unwanted investment.”

Perhaps more questions will be answered at Tuesday’s hearing in Washington, but how everything will shake out remains to be seen, especially since this deal might not even go through in the first place.

Both the Department of Justice (DOJ) and Senators have questioned the legality of the deal, with the DOJ launching an official investigation into the matter.

Yet, Tuesday’s hearing is a big step toward understanding why and how this deal came into place and what professional golf will look like.

Jack Milko is a golf staff writer for SB Nation’s Playing Through. You can follow him on Twitter and Instagram @jack_milko for more golf coverage. Be sure to check out @_PlayingThrough too.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : SBNation – https://www.sbnation.com/golf/2023/7/10/23790255/pga-tour-op-ed-tuesday-senate-hearings

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