From an atrium inside the PGA Tour’s headquarters, Commissioner Jay Monahan’s message was clear, according to a person who heard the remarks. The PGA Tour couldn’t financially afford to conduct a lengthy spending war against Saudi Arabia and its outsize coffers.
“We cannot compete with a foreign government with unlimited money,” Monahan said. “This was the time….We waited to be in the strongest possible position to get this deal in place.”
The Tour, Monahan told employees, had spent close to $50 million in its legal fight, which had years to go, and had dipped into $100 million of its reserves to pay for its schedule. The model was unsustainable, he indicated, as the Tour would have to continue to pay out of its reserves in the future.