Newcastle United PIF braced for £2.3bn PGA Tour swoop by Liverpool owners after 'meaningful progress'

Liverpool's owners have made 'meaningful progress' in their pursuit of purchasing a minority stake in the PGA Tour- putting Newcastle United's owners deal in jeopardy. The Saudi Arabian Public Investment Fund (PIF) has been thrashing out a framework agreement with the PGA and DP World Tour to officially merge PIF-backed LIV Golf.

PGA and LIV had previously been rival tours, with the Saudi's poaching some of golf's top talents including Phil Mickelson, Brooks Koepka and John Rahm.

However, since June the parties have been unable to finalise an agreement, extending talks past the New Year's Eve deadline. And now Liverpool owners, Fenway Sports Group (FSG), are said to have made 'meaningful progress' in its pursuit of a stake in the PGA Tour.

Already owning the Reds, the Boston Red Sox and Pittsburgh Penguins, FSG has taken advantage of the negotiations between PIF and the PGA by offering a deal of its own.

And an agreement if said to be close. Towards the end of 2023, FSG set up the Strategic Sports Group, a partnership with a number of businesmen and investment funds- including Jeff Bezos' brother Mark. According to ESPN, it has been suggested the deal could be worth up to $3bn.

In a memo sent out on 31 December, PGA tour commissioner Jay Monahan said: "As you know, the [PGA Tour policy] board unanimously directed management to pursue exclusive negotiations with SSG. I am pleased to report that we have made meaningful progress and have provided SSG with the due diligence information they requested.

"As we move forward in our discussions, we are focused on the finalisation of terms and drafts of necessary documents. We also continue our active and productive conversations with PIF and the DP World Tour.

"While we had initially set a deadline of December 31, 2023 to reach an agreement, we are working to extend our negotiations into n:ext year based on the progress we have made to date. Our goal for 2024 is to reach agreements with SSG, PIF and the DP World Tour, bringing them on board as minority co-investors in PGA Tour Enterprises."

Speaking to the Boston Globe in November, Liverpool and FSG chairman Tom Werner said “There are a number of people who have raised their hands to say that they would be interested in helping the new PGA, and it’s really up to the players and the board to decide the direction they want to go in. We’ve said that we think that we can help them, but it’s really up to them to decide the path.

“We’ve always thought golf is a growth sport and we feel we have competency in hospitality, in ticketing, creating enthusiasm for the venue that you come to, sponsorship, relations with the fans — these are areas that we have expertise in. There’s a narrative that we’re taking our eye off the ball. Our focus is obviously on the businesses that we are working in. If this happens, it happens, but it’s not going to divert our attention.”