Reading between the lines from Monahan’s vague presser

PONTE VEDRA BEACH, Fla. – Negotiating a multi-billion-dollar deal with a foreign investment fund is complicated enough, but doing it under an unrelenting spotlight is virtually impossible as PGA Tour commissioner Jay Monahan has learned.

For 57 minutes on Tuesday at TPC Sawgrass the embattled commissioner tiptoed around the game’s most volatile topics with the clumsy ease of an 18-handicap mired in one of the Stadium Course’s bunkers. That’s not a criticism, just the unfortunate truth that the type of deal he and the Tour are trying to ink with Saudi Arabia’s Public Investment Fund is wildly complicated and nuanced. Add to that the very public demand for updates and you end up with Tuesday’s Q&A with the media.

The commissioner acknowledged that the negotiations with the PIF are “accelerating” and that they are “engaged” and making “progress,” all of which were about a Rory McIlroy drive away from what the media, public and players want to know.

“You can’t negotiate a deal like this in public,” Monahan said.

That, unlike much of what Monahan said on Tuesday, needed no context. It leaves an empty void for those who want answers but you don’t have to be an expert in private equity to understand that it’s best for all involved if the give-and-take of negotiations be done behind closed doors.

Monahan did, however, leave some breadcrumbs for those who watched his press conference, starting with a possible timeline. When the June 6 framework agreement was announced, it had a Dec. 31 deadline that came and went with no deal. Since then, the only updates have been vague.

“I expect next time I’m in front of all of you we’ll have a lot more progress to report,” the commissioner said.

Although that’s far short of a hard deadline, it does give a rough estimate of where the Tour and PIF are in the process, with Monahan’s likely next press conference — barring some breaking news — coming at the Tour Championship in August.

Monahan also addressed how the deal with SSG, a group led by Fenway Sports, might impact a potential deal with PIF. Some looked at the SSG agreement as a possible competitor to a potential Saudi investment.

“It was important for SSG and it was important for the Tour to engage directly with the PIF prior to finalizing any deal, which is why I joined principals from SSG on a trip to Saudi Arabia to meet with [PIF governor Yasir Al-Rumayyan] and members of PIF and that’s why we continue to have productive discussions,” Monahan said of his January meeting in the Middle East. “There’s a mutual respect there that I think is helpful towards ultimately getting a deal done and I think it is that level of discussion that has helped accelerate the conversations.”

Monahan’s explanation seemed to suggest that it’s not a matter of a SSG or PIF deal, but instead an SSG and PIF deal. It would be a stretch to imagine some of the best business leaders in sports — including Arthur Blank, John Henry and Steven Cohen, who are all investors with SSG — were interested in investing in PGA Tour Enterprises, the circuit’s new for-profit arm, with the looming threat of LIV Golf backed by the vast resources of the PIF. It’s more likely SSG signed on to be a part of professional golf’s new reality with the PIF.

In the simplest terms, what a potential deal with PIF, and LIV Golf, would look like is a question shared by many and, again, Monahan provided no details.

“We have several key issues that we still need to work through,” he said.

Perhaps the most pressing of those “issues” would be what the potential path back for players who joined LIV Golf might look like. Based on player reaction, it’s also the most polarizing of all the issues the commissioner faces as he continues his talks with the PIF and he acknowledged as much.

“However we end up, I think that we’re not going to be able to satisfy everyone and that goes for both sides,” he said.

Monahan was also asked what the Tour would look like if there is a deal with PIF and how LIV Golf’s team format might fit in. Again, no specifics, but even his non-answer had a dollop of insight.

“There are a lot of things that we’re talking about, team golf being one of them, but I’m not at liberty to talk about the specifics,” he said. “I just don’t think that’s helpful for what we’re trying to accomplish together.”

Finally, Monahan was asked if there were dangers in not reaching an agreement with the PIF, an option player director Webb Simpson called “very dangerous.”

“You always have to be open to not doing something while you’re trying to do something,” Monahan said. “If we don’t negotiate a deal then I think ultimately we’re back in the same posture that we’re in and we haven’t unified our game and taken advantage of this unique point in time.”

Those who tuned in on Tuesday were likely disappointed with that level of obfuscation and that was inevitable. Even those who will be impacted the most — the players — walked away with an empty feeling, and based on Monahan’s evasiveness, that’s going to be the case for foreseeable future.