June 6, 2023. The date that will forever be etched in golf history. This is when the Tour decided to merge with its rival. Initial deadline? December 31, 2023. Well, that’s far gone now. The golf world still does not know when the final $3B merger will conclude, but they are excited for golf’s best to play together again. The conclusion of the deal might be near or far, but the meetings to make it happen are in full swing. So, the verdict is that the most recent meeting between Jay Monahan and Yasir Al-Rumayyan at the White House may have made things worse again.
The PIF Governor was left shocked after hearing the absurd proposal of the PGA Tour. Apparently, Jay Monahan & Co. valued LIV Golf at $500 million. The Public Investment Fund leader thought they were incredibly under-valued, considering they have invested $5 billion into the league already. On the contrary, analysts believe that the PGA Tour’s proposal was way too generous. So, on the latest episode of The Varsity podcast, Golf Channel’s Eamon Lynch joined John to discuss everything LIV Golf, and that’s when the discussion happened.
A frustrated Lynch claimed, “They valued LIV at $500 million, which is a kind of a comical assessment because it’s not worth $50 bucks.” He further explained, “They’ve literally shoveled $5 billion into a furnace and got nothing for it.” The journalist is true as despite gaining a lot of fame, LIV Golf is still not a profitable venture. You see, purely as a business, LIV Golf is a failure. It may have generated a lot of revenue, but the money they have invested in it with total capital injections exceeding $1 billion to the UK arm alone is a lot. Also, LIV Golf’s operating losses have increased, reaching $394 million in 2023. Hence, Lynch said that he was shocked when he heard that “Al-Rumayyan was gravely offended in this White House meeting by that dollar assessment.”
Eomon Lynch further added, “So there’s an enormous delta between what he needs to hear in terms of a face-saving valuation of this colossal failure, versus what would make any kind of business sense for the PGA Tour, because this isn’t a product that has any lifespan to it at all.” The golf analyst believes the PIF Governor should cover as much of his losses as possible and join forces with the PGA Tour after receiving such a generous offer. That’s the only way they may be able to break even in the coming years.
PONTE VEDRA BEACH, FLORIDA – MARCH 12: Jay Monahan of The United States the commissioner of the PGA TOUR speaks to the media during his media conference prior to THE PLAYERS Championship on the Stadium Course at TPC Sawgrass on March 12, 2024 in Ponte Vedra Beach, Florida. (Photo by David Cannon/Getty Images)
Al-Rumayyan may have recovered from the shock in the White House meeting. However, Jay Monahan had a completely different view about how the conversation was. Let’s see what the PGA Tour commissioner had said.
Jay Monahan’s positive outtake from the White House meeting
Jay Monahan was far more optimistic after the White House meeting than Al-Rumayyan’s reaction might suggest. The PGA Tour commissioner shared how the merger is progressing ahead positively. “I think anything that I’ve said or we said, the three of us said is consistent with what should be said when you’re in the middle of a complex discussion to try and reunify the game of golf. It doesn’t speak to my confidence level, it speaks to the moment. I view that meeting as a huge step and so I look at that very positively,” Monahan said after the meeting.
He also went on to share the PGA Tour’s plans for integrating LIV Golf within their schedule. The integration part didn’t sit well with the PGA Tour loyalists, though, as they bashed Monahan for his statement. The commissioner stated that President Trump also played a part in helping the conversation progress further. After hosting leaders of both leagues at his office, the 47th POTUS was credited for “bolstering” the merger conversation.
Monahan had also said that the Tour’s fan surveys show that about 70% of fans look positively on reunification and that the league is doing “everything we can to reunify the game.” He also admitted that “Our team is fully committed to reunification.”
Will Al-Rumayyan also come to realize the benefits of “reunification” despite receiving a shocking offer? Only time will tell.
The post ‘[Yasir] Al-Rumayyan Was Gravely Offended’: Uncomfortable Details From White House Meet Come Out After Jay Monahan’s Assurance appeared first on EssentiallySports.