In a framework agreement obtained by The Associated Press, the PGA Tour and European Tour have confirmed their collaboration with Saudi backers of LIV Golf to determine the return of defectors from the rival league and establish appropriate penalties. The agreement, signed on May 30, was made available as part of the documentation requested by Senator Richard Blumenthal, D-Conn., for a hearing scheduled on July 11 in Washington. Senator Blumenthal, who chairs the Senate Permanent Subcommittee on Investigations, expressed the need to uncover the facts surrounding the PGA Tour’s deal with the Saudi Public Investment Fund and its implications for American interests and the future of the sport.

According to the framework agreement, a for-profit company jointly formed by the PGA Tour and the Saudi backers will serve as the governing body for professional golf, ensuring coexistence with LIV Golf. The PGA Tour and the European Tour have committed to working together in good faith to establish a fair and objective process for defectors to reapply for membership. They will also define the criteria and terms for readmission, in line with the disciplinary policies of each respective tour.

Players who participated in LIV Golf events were suspended by the PGA Tour for failing to obtain the necessary releases required under the tour’s policy. These suspensions are expected to remain in effect until at least the conclusion of the 2024 season.

Previous reports from the Associated Press highlighted the assurances given in the agreement that the PGA Tour would retain a controlling interest in the newly formed commercial entity, referred to as “NewCo,” regardless of the financial contribution made by the Public Investment Fund of Saudi Arabia. However, the framework agreement lacks specific details that are still being negotiated, such as the future of LIV Golf and the extent of the PIF’s investment in NewCo.

NewCo’s mandate includes conducting an impartial and data-driven evaluation of LIV Golf, assessing the potential benefits of team golf, and determining how to best integrate team golf into future PGA Tour and European Tour events. Jay Monahan, the Commissioner of the PGA Tour and CEO of the new entity, will oversee the operational strategy of NewCo, which encompasses LIV Golf.

The agreement envisions a global golf partnership between the Saudi fund and the leading tours, aiming to unify the sport. It also outlines NewCo’s plans to generate financial returns, including potential mergers and acquisitions to internationalize golf.

Additionally, the agreement emphasizes efforts to have the Official World Golf Ranking recognize LIV Golf, with cooperation between the tours and the PIF. However, such recognition would be contingent on fulfilling OWGR criteria, which LIV Golf has yet to meet due to factors like the absence of cuts and limited fields in its events.

Apart from their involvement in the new commercial entity, the PIF intends to make a financial investment as a premier corporate sponsor of either the PGA Tour or the European Tour. They also plan to become a title sponsor for one of the tours and contribute to a program aimed at promoting the growth of the game. The PIF is currently the sponsor of the Saudi International, which was previously part of the European Tour.

The framework agreement sets a deadline of December 31 to reach a definitive deal. If the agreement is not finalized by then, the parties have the option to extend the deadline or revert to business as usual. As part of the agreement, all ongoing litigation, including the antitrust lawsuit against the PGA Tour and the tour’s countersuit against LIV Golf, has been dismissed. A federal judge in California recently ruled on these matters.

The PGA Tour board is scheduled to convene a meeting in Detroit on Tuesday, although no significant actions are expected