Rory McIlroy’s jaw likely to hit the floor with latest PGA Tour-LIV Golf news

World number three Rory McIlroy might be surprised to hear the PGA Tour and LIV Golf’s Saudi backers have finally ‘exchanged terms’.

Ben Smith
Rory McIlroy
Rory McIlroy

Rory McIlroy told reporters before the second men’s major of the year his confidence a deal could come to pass between the PGA Tour and LIV Golf’s backers was at an all-time low. 

McIlroy, 35, made the statement at Valhalla approximately 24 hours after news filtered through Jimmy Dunne was quitting the PGA Tour’s policy board with immediate effect.

Dunne was a prime architect of the secretive 6 June 2023 framework agreement between the PGA Tour and Saudi Arabia’s Public Investment Fund.

In his resignation letter, Dunne claimed his position had become ‘utterly superfluous’ after he was apparently frozen out of talks given some players were still angry with him.

Both Tiger Woods and Jordan Spieth disagreed with his version of events and expressed their surprise at his decision to walk away.

A crestfallen and soon-to-be divorcedMcIlroy said Dunne’s absence will ultimately be a ‘huge loss’ to the North American circuit given he was the conduit between the PGA Tour and PIF.

But according to the New York Times, a deal is still ‘very much alive’.

Lauren Hirsch reported that despite the many setbacks that has included missed deadlines and high-profile resignations, the two tours have already ‘exchanged terms’.

Rory McIlroy
Rory McIlroy

The report states: “There have been a series of setbacks in the year since the PGA Tour and Saudi Arabia’s sovereign wealth fund agreed to combine forces in the professional golf world, including missed deal deadlines and the resignation of leaders.

“When the PGA Tour secured a huge investment in January from U.S. investors, including the hedge fund mogul Steven Cohen, the question was whether the Saudi deal was dead.
“But negotiations are still very much alive, two people familiar with the talks told DealBook’s Lauren Hirsch.
“The Saudi Public Investment Fund, which bankrolls LIV Golf, and the PGA Tour exchanged term sheets in recent days for a potential deal in which the Saudis would inject $1.5bn into the tour’s for-profit arm.
“Representatives both from the fund and from the PGA Tour declined to comment.

The publication report that the deal would ultimately give PGA Tour Enterprises $3bn in funding overall.

If that were to happen, the PGA Tour would still retain majority control of PGA Tour Enterprises.

That said, the deal would likely come under scrutiny from the Justice Department.

The news will likely come as a surprise for McIlroy.

He quit the policy board five months ago and later told of how he felt like he was banging his head against a brick wall given the lack of progress.

The assumed explanation is that McIlroy’s ally Dunne along with PIF officials asked for the Ulsterman to return.

When that happened, McIlroy was happy to oblige.

But his return was blocked by Woods, Spieth and Patrick Cantlay.

McIlroy responded to the snub by saying there was no bad blood.

His name was later added to a ‘transaction subcommittee’ whereby he is one of three active players who are engaged in direct negotiations with the PIF.

Woods, 48, is one of those players.

Former Masters champion Adam Scottis the other.