Legal Law

Golf goes international

This weekend was full of sporty action. Mike Tyson returned to the ring 15 years after his last fight. Charles Barkley and Phil Mickelson defeated Peyton Manning and Stephen Curry in The Match, a charity golf excursion.

And that wasn't the only golf news on tap. On Friday the PGA Tour signed an important strategic alliance with the European Tour.

Quick regrouping for non-golfers

The PGA Tour is the world's leading golf organization. It has the biggest tournaments, the biggest wallets, and attracts the best golf talent from all over the world:

Of the 20 Europeans among the 75 best golfers in the world, only four are not members of the PGA Tour. This year, the average price for the PGA Tour will be around $ 7 million. In contrast, the wallet on the European Tour rarely exceeds $ 1 million.

The specifics of the deal: Stay vague. The PGA Tour will hold a minority stake in the European Tour media production company. The two tours will also "explore collaboration and work together on strategic business opportunities, including working together on global media rights in specific territories."

What else to know

This wasn't the only deal on the table.

Negotiations were reportedly hampered by a competition proposal submitted to the European Tour by Raine Group, a private equity firm that led a proposed league called the Premier Golf League. In short, the PGL would run "highly lucrative" limited-field tournaments with a team element.

However, the planned tour was hit with a blow in March when Rory McIlroy, Jon Rahm and Brooks Koepka – the top three players in the world at the time – publicly opposed the PGL. McIlroy said he objected to the source of funding, which is a Saudi Arabia-controlled mutual fund.

Take that away: Commentators expect the deal to lay the groundwork for a more integrated global golf community. That is, after the pandemic.

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