Jay Monahan Pushing Ahead With 'Framework Agreement' Though Many Questions Remain

Back at work after a health scare, the commissioner says the PGA Tour is in a strong position and could be stronger with a completed deal.

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Jay Monahan conducted his first player meeting last week since returning last month from a health scare, putting forth a positive outlook on what has been a difficult time both personally and professionally.

Monahan was at the FedEx St. Jude Championship to update players on the current situation regarding the "framework agreement" that has caused so much angst among many who questioned his job status in the aftermath of the secret deal with the DP World Tour and Public Investment Fund of Saudi Arabia.

In his first exchange with reporters since returning to work on July 17, Monahan expressed his regret at the way the situation was handled, but pushed forth a narrative that suggests the PGA Tour is in a strong position and will be even stronger if a deal is consummated in the coming months.

There remain far more questions than answers.

> On the reasons for engaging with the PIF, Monahan said “we were obviously in a conflict, and that conflict posed a longterm existential risk, and the PGA Tour was and is stronger than we've ever been. We wanted to wait until the absolute right time to initiate a conversation, a time when we were in a maximum strength position.

“That’s what we did. ... I think in order to enter into good faith discussions to move to a definitive agreement, I think it was logical and the right thing to do to end the expensive, divisive and distracting litigation, which we agreed to do, and it was important for me as the leader of this organization to make certain that as we entered into those conversations there were certain safeguards and bedrock elements that we secured that would be the guide towards those conversations.

“Again, those are well established ... ultimately what we did is we had an agreement to explore an agreement. That process is well underway."

Among the big issues that Monahan points to: PGA Tour Inc., the nonprofit entity that is the PGA Tour as we know it, remains the same. And that PIF’s involvement in the new for-profit venture called PGA Tour Enterprises, will be as a minority investor.

> And yet, that leads to more questions. How is the Tour stronger if it needed to make a deal with the PIF? And how does that deal not include any sort of investment in the PGA Tour Inc. in the form of sponsorship?

Asked to clarify how the Tour is stronger now than it has been in the past few years, Monahan pointed to the rollout of the 2024 schedule that enhances monetary opportunities for the players and the support of sponsors. He also noted the dropping of litigation with LIV Golf has given the Tour a stronger position legally.

And he pointed to the players who have supported the playing model of the PGA Tour.

According to various sources, the Tour was having difficulty meeting the obligations it had set for itself by increasing several tournament purses to $20 million via the "Signature Events."

While the Tour was helping subsidize purses in 2023, it was pushing the burden to sponsors for 2024. That meant a significant increase in responsibility from what was negotiated via sponsorship deals. And while these tournaments such as the AT&T Pebble Beach Pro-Am and the RBC Heritage are now assured of better fields, there was clearly pushback on the increase among some involved.

That was among the reasons it was believed the Tour was seeking a deal with the PIF.

And yet, Monahan offered no sense that there would be anything more than a minority stake in PGA Tour Enterprises. Monahan said the Tour is not seeking additional investors other than trying to work with the PIF.

Which seems to lead to a disconnect between the difficulty the Tour had in meeting its purse obligations and Monahan’s view that the Tour is stronger than ever.

Asked if the PIF might get involved with the PGA Tour Inc. as perhaps a title sponsor or presenting sponsor of events, Monahan did not commit.

“I think there are a lot of possibilities,’’ he said. “Those are questions that we'll answer on the back end of this process. We just announced our '24 schedule, and our corporate partners have stepped up to support the schedule that we have, and we absolutely have a sustainable business model. Just look at the strength of how we’re performing.

“As it relates to the role that they can play as a sponsor and some of the other things that are identified in the framework agreement, the specifics of that we’re going to continue to work through."