Wachtell Lipton Represents PGA TOUR in Merger

Today the PGA TOUR, the DP World Tour and the Public Investment Fund of the Kingdom of Saudi Arabia (PIF) announced a landmark agreement to unify the game of golf on a global basis. The groundbreaking agreement resolves one of the most widely followed and contentious disputes in the sports arena and puts an end to the highly publicized litigation in the U.S. and in the U.K. between the parties.

Under the terms of the agreement, the golf-related commercial businesses of the PGA TOUR, the DP World Tour and PIF, including Liv Golf, will be combined in a new, collectively owned, for-profit entity in which the PGA TOUR will hold a majority voting interest. A majority of the members of the Board of the new entity will be appointed by the PGA TOUR. PGA TOUR Inc. will remain in place as a 501(c)(6) organization and retain administrative oversight of events for the assets contributed by the PGA TOUR, including sanctioning of events, administration of the competition and rules, and other “inside the ropes” responsibilities. The parties will work cooperatively and in good faith to establish a fair and objective process for any players who desire to re-apply for membership with the PGA TOUR or the DP World Tour following the completion of the 2023 season and for determining fair criteria and terms of re-admission, consistent with each Tour’s policies.PIF will make a cash investment into the new entity to facilitate its growth and success. Through this unprecedented partnership, the new entity will grow the combined commercial businesses, drive greater fan engagement and accelerate growth initiatives already underway. The agreement represents a momentous and transformational milestone in the world of sports, and the combination will promote and grow the game of golf globally for the benefit of all stakeholders, including players, commercial and charitable partners and fans. Ed Herlihy serves as Chairman of the PGA TOUR Policy Board and Wachtell, Lipton, Rosen & Katz is serving as legal advisor to the PGA TOUR.

Wachtell Lipton’s team consists of Edward D. Herlihy, Jacob A. Kling and David B. Anders.