European Tour and PGA Tour announce "Strategic Alliance"

Fears that the European Tour could be the target of an eventual takeover by the PGA Tour grew considerably with the announcement today of a “Strategic Alliance” between the game’s two biggest professional tours. 

In a joint press release, the agreement was hailed as a “landmark” move that will see golf’s two major Tours “explore all facets of collaboration, working together on strategic commercial opportunities including collaborating on global media rights in certain territories.”

The deal sees the PGA Tour acquire a minority investment stake in European Tour Productions (ETP), the European Tour’s Media Production company, which produces and distributes content internationally. 

The Tours will also work in partnership on a number of other areas including global scheduling, prize funds and playing opportunities for the respective memberships. Further details of these areas will be announced in due course. 

One element of the partnership which can be confirmed today is that PGA Tour Commissioner Jay Monahan will take a seat on the Board of the European Tour.

However, there was no news of European Tour Chief Executive Keith Pelley taking a place on the PGA Tour Board.

“This partnership is an historic moment for the game of golf and is a fantastic opportunity for both the European Tour and the PGA TOUR to explore ways to come together at the very pinnacle of our sport and work in unison for the benefit of the men’s professional game,” Pelley said in the statement. 

“Today’s announcement is the formalisation of a closer working relationship between the Tours in recent years. It was one which was crystalised earlier this year when both Jay and I were part of the working group containing representatives of the four Majors and the LPGA, a group which helped shape the remainder of the golfing calendar for 2020 during unprecedented times.

“We shared the challenges of working through a year neither of us could have ever imagined and we found definite synergies in many areas of our respective Tours. That gave us the impetus to move forward together and arrive at this momentous announcement we are making today.”

Monahan said: “We are thrilled to announce this further strengthening of our partnership with the European Tour, and we look forward to working together for the benefit of the men’s professional game and for golf fans around the world.”

Pelley was scheduled to give a teleconference at 1630 on Friday.

The European Tour has been deeply affected by the COVID-19 pandemic.

On 2 October last year, the circuit announced it would have a minimum of 46 Race to Dubai events in 29 different countries, including eight Rolex Series events.

However, following the arrival of the Covid-19 pandemic and the shut down of golf for four months between March and July there are just 38 events (33 if you discount the three WGCs and three Majors) and only four Rolex Series tournaments on the revamped schedule.

As far purses, 16 European Tour events offered prize funds of €1.5 million or less while 11 events had prize funds of just €1 million.

Thanks to its huge TV deals and greater financial clout, the PGA Tour has been able to retain its prize funds at the levels announced last year though it was forced to cancel 11 events due to the pandemic.

Asked about a merger between the European Tour and the PGA Tour in an interview with John Huggan for Golf Australia last year, Pelley said: “You never say never… There have been discussions going back 15-20 years. But that is all they have been. We don’t necessarily talk ‘merger.’ We talk about strategic alliances and how we can work more closely together. We talk about broadcast deals. A merger would be an enormous undertaking.”