In a groundbreaking development, the PGA Tour, European Tour, and LIV Golf have entered into a framework agreement to collaborate on the future of professional golf. This landmark agreement, signed on May 30th, outlines a path for players who defected to LIV Golf to potentially return to the established tours and addresses the framework for potential disciplinary actions. The agreement envisions the creation of a new for-profit entity, backed by Saudi Arabia's Public Investment Fund (PIF), that will encompass professional golf, allowing both the PGA Tour and European Tour to coexist with LIV Golf.

Dustin Johnson, Pat Perez, Patrick Reed, and Talor Gooch of 4 Aces GC with Greg Norman, CEO and commissioner of LIV Golf, after their team victory at the LIV Golf Invitational - Chicago in September 2022. (Joe Scarnici/LIV Golf via Getty Images)

This agreement comes under scrutiny as the Senate Permanent Subcommittee on Investigations, chaired by Senator Richard Blumenthal (D-Conn.), seeks to understand its implications. The subcommittee requested these documents as part of a hearing held on July 11th in Washington, aiming to investigate the deal's impact on the future of golf and the national interest. The PGA Tour's participation in the hearing was confirmed, although Commissioner Jay Monahan's attendance remained uncertain due to a medical leave of absence.

The agreement stipulates that the PGA Tour and European Tour will work together to establish a fair and objective process for players wishing to rejoin their memberships. This will include defining criteria and terms for readmission, aligning with each tour's disciplinary procedures. The agreement also addresses the future of LIV Golf, stating that the new entity will evaluate LIV’s potential and explore ways to integrate team golf formats into PGA Tour and DP World Tour events.

Yasir Al-Rumayyan at the LIV Golf Invitational-Chicago in September 2022. (AP Photo/Charles Rex Arbogast, File)

The framework agreement lacks specific details regarding the PIF's investment amount and the long-term future of LIV Golf. However, it confirms that the PGA Tour will retain majority control of the new commercial entity, regardless of the PIF's contribution. The new entity, tentatively named "NewCo," will manage all future golf-related investments of the three organizations.

PGA Tour Commissioner Jay Monahan. (AP Photo/Seth Wenig, File)

The agreement also outlines the intent to pursue recognition of LIV Golf by the Official World Golf Ranking (OWGR), subject to OWGR criteria and LIV Golf's application. Furthermore, it details plans for the PIF to become a premier corporate sponsor of either the PGA Tour or European Tour, potentially including title sponsorship and contributions to grow the sport.

Jay Monahan speaking at a press conference. (Richard Heathcote/Getty Images)

A deadline of December 31st has been set to finalize the agreement. If an agreement is not reached by then, the parties can extend the deadline or revert to their previous separate operations. Critically, the agreement mandates the dismissal of all pending litigation between the parties. A key next step is the PGA Tour board meeting scheduled in Detroit, although no immediate action is expected due to the numerous unresolved details and ongoing Justice Department review.