PGA Tour Board Member Resigns, Citing Lack of Progress in Saudi Deal
Louisville, Kentucky – Jimmy Dunne, a prominent investment banker and key figure in the PGA Tour’s framework agreement with the Public Investment of Saudi Arabia (PIF), has resigned from the PGA Tour policy board. Dunne cited “no meaningful progress” towards a deal with PIF in his resignation letter, as reported by Sports Illustrated.
Dunne, along with policy board chair Ed Herlihy, was deputized by PGA Tour commissioner Jay Monahan to negotiate with PIF governor Yasir Al-Rumayyan in secret. The result of their negotiations was the framework agreement announced on June 6, 2023. This agreement allowed the PGA Tour to maintain control of a Saudi-funded new entity called PGA Tour Enterprises.
However, nearly a year later, Dunne expressed disappointment in the lack of progress towards unification. He also acknowledged that his vote had become “superfluous” since players gained control of the policy board last year. The announcement of the framework agreement had initially angered players who were kept in the dark about the negotiations. Many players rejected lucrative offers from the Saudi-backed Premier Golf League (LIV) out of loyalty to the tour.
The players’ dissatisfaction led to increased pressure on Monahan to provide them with more say in tour decisions. As a result, Tiger Woods was added as a player board member with voting control. This move revealed that Woods aligned himself with Patrick Cantlay, another policy board member who reportedly took control of board dealings. Rory McIlroy, a former board member known for his differing views on certain issues, resigned from the board in November.
McIlroy was replaced by Jordan Spieth, who reportedly aligned himself with Cantlay and Woods. With the majority of player directors seemingly less motivated to make a deal with PIF, the original deadline for a deal was extended. Meanwhile, LIV continued to attract top PGA Tour players like Jon Rahm.
In February, the PGA Tour announced a $3 billion investment from Strategic Sports Group and distributed $1.5 billion in equity to players. However, this did not appease Dunne, who resigned one week after McIlroy’s potential return to the policy board was blocked.
McIlroy has been pushing for a deal with LIV in recent months and was added to a newly created “transaction subcommittee” for negotiation with PIF. The subcommittee includes Woods, Monahan, board chairman Joe Gorder, John Henry of Fenway Sports Group, director liaison Joe Ogilvie, and Adam Scott.
McIlroy acknowledged differences with Woods but emphasized that disagreements should not strain their friendship. Dunne, on the other hand, expressed his frustration at not being involved in any negotiations since June 2023. He stated that his vote and role on the board had become irrelevant.
Dunne emphasized the importance of unifying professional golf to restore fan interest and heal divisions within the sport. However, it remains to be seen how the PGA Tour will navigate the ongoing negotiations with PIF and the potential impact on player dynamics and future opportunities for the tour.