The results of the US elections are in and the news that Donald Trump will return to the White House has sent shockwaves across the globe. Trump has promised to get deals done to fix everything from Gaza to Ukraine and inflation to immigration, but his assertion that he can bring peace to the warring PGA Tour and LIV Golf has caught the eye, particularly given the president-elect’s obvious personal interest in seeing a deal done.
LIV Golf was created in 2022 by Saudi Arabia’s Public Investment Fund. The PGA Tour immediately viewed LIV as a direct competitor and a “breakaway league.” Bankrolled by the Saudi Arabia Public Investment Fund, critics have accused LIV of being a vehicle for sportswashing, particularly in the wake of the murder of journalist Jamal Khashoggi in 2018.
Ultimately, keeping golf’s best players from playing each other has not made for the best sporting spectacle either, and in June 2023 the PGA Tour, DP World Tour and the PIF agreed to work towards a merger. However, despite protracted discussions the two sides have not made progress on the details of any deal.
With Trump shortly due to reassume control of the White House and with it the ability to make key appointments, many will be hoping he can help to end golf’s bitter and long-running dispute. Trump could intervene to lift the Department of Justice’s block to the merger, which it has said could violate competition law, while he can also use his close relationship with Saudi Arabia and LIV Golf (his courses have hosted several of LIV’s events) to help grease the gears.
As modest in public as he is keen on golf, Trump was quick to champion his own talents as a dealmaker, saying recently: “Yeah, I could certainly help, but I could probably get it done. I would say it would take me the better part of 15 minutes to get that deal done.” The 78-year-old did not explain any details of how he would make a deal happen, but while there are plenty of issues to be ironed out, including questions about scheduling and how LIV players could be reintegrated into the PGA Tour events, he is well-placed to get the negotiations moving.
The LIV/PGA schism has created considerable upheaval and acrimony that has divided the sport’s top players into rival tours. Announcing the merger in June 2023, PGA Tour Commissioner Jay Monahan, who has been a vocal critic of LIV Golf, said: “After two years of disruption and distraction, this is a historic day for the game we all know and love… We’ve recognized that together we can have a far greater impact on this game than we can working apart.”
Getting a deal finally over the line would be a win for players, fans and broadcasters, as the two-tier system has kept some of the sport’s greatest players on opposing circuits. The PGA would benefit from access to greater financial backing with more investment helping to secure the best players, events and broadcast deals. It could also accommodate some of the changes which have made LIV Golf so attractive, such as smaller fields and shotgun starts, while giving LIV access to its broadcast partners and commercial reach to boost viewing figures.
Crucially, golf’s top players would no longer be siloed and barred from certain events, creating more opportunities for the game’s greatest to face-off at the tee, which is what the fans really want to see and what a true competition should be about.
Trump’s boast that he could get a deal done in 15 minutes is typically flippant and bombastic, but he’s not any ordinary president and with his powers over key appointments and a stated willingness to prioritise getting a deal done, we could see efforts to finalise a merger prioritised early in his return to the White House.
After all, Trump’s golf business and associated real estate assets are reportedly worth $1.7 billion, so a deal that brings more money into golf is in his interests, and he’s certainly never been shy to take a swing at feathering his own nest. For golf at least, Trump’s election could be just the thing to get the deal out of the rough and zipping back down the fairway.
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David Little is a Partner at Bishop & Sewell in our expert Sports Law and Corporate & Commercial teams. If you would like to contact him, please call on either 07968 027343 or, 020 7631 4141 or email: company@bishopandsewell.co.uk.
The above is accurate as at 12 November 2024. The information above may be subject to change.
The content of this note should not be considered legal advice and each matter should be considered on a case-by-case basis.
