PGA Tour’s Jay Monahan updated players in a memo on Monday’s final board meeting of 2023. Here’s what it said
The PGA Tour elected a new policy board member on Monday during a lengthy board meeting and updated players in a memo sent to players by Tour Commissioner Jay Monahan on the ongoing negotiations with Saudi Arabia’s Public investment fund.
The final PGA Tour Policy Board meeting was held on Monday at Tour headquarters in Ponte Vedra Beach, Florida, and included new board member Tiger Woods.
Monahan noted that an Ad Hoc independent director selection committee was established to fill the seat of Randall Stephenson, who stepped down in June following the announcement of the framework agreement with PIF, and that 90 candidates were vetted for the role of the fifth independent director on the board.
“We’re pleased to announce that upon the Committee’s recommendation and with full approval from the Policy Board, Joe Gorder, Executive Chairman of Valero Energy Corporation, will fill the fifth Independent Director seat,” Monahan wrote in a memo obtained by Golfweek. “Under Joe’s leadership, Valero has been a steadfast supporter of the PGA Tour since 2002 as title sponsor of the Valero Texas Open with the partnership secure through 2028. During that time Valero has generated more than $228 million in total charitable giving, including $23 million in 2023.”
Also of note: Patrick Cantlay was reappointed by the elected Player Directors to serve as the fifth Player Director (2024-26). Ed Herlihy will continue as Policy Board Chairman and Mark Flaherty will serve a second four-year term (2024-27).
Team USA golfer Patrick Cantlay addresses the media in a press conference prior to a practice round of the Ryder Cup golf competition at Marco Simone Golf and Country Club. Mandatory Credit: Adam Cairns-USA TODAY Sports
Monahan stated that negotiations toward a definitive agreement with PIF and the DP World Tour remained ongoing and a “priority.”
“Progress has been deliberate given the complex nature of the potential agreement, and we will keep you apprised of the progress, with continued input and direction from your Player Directors and player advisor Colin Neville,” he wrote in the memo. “Additionally, as you know, the Framework Agreement with PIF and the DP World Tour generated unsolicited – although not surprising – interest from numerous outside potential investors. The opportunity to potentially participate in the transformative growth of the PGA Tour for the first time brought forth dozens of inbound prospects, which were all initially vetted by the Tour’s investment bank, Allen & Company.
“In the Policy Board meeting, we reviewed these remaining bids with the Independent Directors and Player Directors – with input from Allen & Co. and The Raine Group – and agreed to continue the negotiation process in order to select the final minority investor(s) in a timely manner.”
Golfweek’s Eamon Lynch previously reported that the Tour has narrowed those candidates to five.
The memo went on to highlight the potential for player equity in the for-profit entity, which is currently being called PGA Tour Enterprises.
“Tour management has designed a program that would align the interests of our members with the commercial business of the Tour via direct equity ownership in PGA Tour Enterprises,” the memo read. “At the point we secure outside investment, this would be a unique offering in professional sports, as no other league grants its players/members direct equity ownership in the league’s business. We recognize – as do all of the prospective minority investors who are in dialogue with us – that the PGA Tour will be stronger with our players more closely aligned with the commercial success of the business.”
Monahan closed by noting that “the governance review remains a priority” and wrote, “we agreed to move this process forward at an accelerated pace with the ad hoc committee.”
Left unsaid in the memo to the players was whether any deal would be reached by the Dec. 31 deadline.
