Rory McIlroy Hints Merger Talks Between PGA Tour And Saudis Have Broken Down, Says Deal May Not Be 'Needed'

A month ago, it felt like a potential deal between the PGA Tour and the Saudi Public Investment Fund (PIF) - the sole funder of LIV Golf - was closer than ever before to getting across the line. A meeting at the White House with President Donald Trump and representatives from both sides, along with messaging from the Tour itself, brought a feeling of optimism about the ongoing situation for the first time.

Based on comments made by Rory McIlroy, either something has changed between early February and now, or the Tour's positive-worded statements were nothing but smokescreens.

During his Wednesday news conference ahead of this week's Arnold Palmer Invitational, McIlroy was asked if he still believed that a deal between the Tour and Saudis was needed. He elected to split hairs about golf ‘needing’ a deal and ‘welcoming’ one.

"I think the narrative around golf, I wouldn't say needs a deal, I think the narrative around golf would welcome a deal in terms of just having all the best players together again. But I don't think the PGA TOUR needs a deal. I think the momentum is pretty strong," McIlroy stated. 

"As you say, TV's been good, TGL's been hopefully pretty additive to the overall situation. And yeah, I would say, you know, again, I answered this question at Torrey Pines two weeks ago, before, you know, the landscape might have looked a little different then than it does now over these past couple of weeks, and I think a deal would still be the -- I think it would still be the ideal scenario for golf as a whole. But from a pure PGA TOUR perspective, I don't think it, I don't think it necessarily needs it."

The press conference strayed away from merger talk, but eventually returned to the big topic at hand, which is when McIlroy threw an ocean-sized bucket of water on the fire surrounding a deal getting done sooner rather than later. 

"Look, I think it takes two to tango. So if one party is willing and ready and the other isn't, it sort of makes it tough." McIlroy said when asked what has changed over the past few weeks after things seemed to be moving in a positive direction.

Rory McIlroy says it doesn't feel like a deal between the PGA TOur and Saudi PIF is anywhere close to getting done. (Kyle Terada-Imagn Images)

Rory McIlroy Not Even A Little Optimistic About A PGA Tour - Saudi Deal

He went on to say that he still believes the ideal situation would be to get the best players in the world playing against each other as often as possible, and not only at the majors, but when asked how that happens, he further hinted that the Saudis aren't exactly playing along at the moment.

"I mean, their billion dollars would be nice, too," McIlroy said.

"I gave a lot of thought to it a couple of years ago, but less now. No. I mean, like you could create exemption categories that you try to capture who you want to capture, you know, major winners in the last three years, plus player champions, I don't know. But, yeah, that's, again, I'm -- not my department."

Then came the dagger from McIlroy.

"I don't think it's ever felt that close, but I don't, it doesn't feel like it's any closer," McIlroy said when asked if a potential deal seemed further away at this point.

This is the opposite of what anyone wanted to hear. 

Waiting Game Continues

We're fast approaching the two-year anniversary of when the PGA Tour and Saudi PIF announced a framework agreement, yet it both feels and now sounds like nothing is even close to being done between the two sides.

The last noteworthy development in all of this came in January 2024 when the PGA Tour finalized a deal with Strategic Sports Group, a consortium of American billionaires, worth a reported $3 billion to form a new for-profit entity called PGA Tour Enterprises.

The for-profit entity will provide nearly 200 PGA Tour players the opportunity to become equity holders in this new company.

The announcement of PGA Tour Enterprises, especially the deal with Strategic Sports Group, was a bit of a surprise given the Tour was already in active discussions with the Saudi PIF, which isn't short on money with assets estimated to be $930 billion.

With equity being a part of this equation, it appears that a potential merger between the Tour and Saudi PIF would involve the Saudis buying a share of the equity in PGA Tour Enterprises from the Strategic Sports Group. 

That seems like a relatively painless ask in all of this, but there appear to be serious holdups in conversations, and the ones with infinite amount of cash to play with typically hold all the cards in these types of situations.