In a press release issued on June 6, 2023, the PGA Tour (a tax-exempt organization under section 501(c)(6) of the federal Internal Revenue Code), DP World Tour, and LIV Golf, backed by Saudi Arabia’s Public Investment Fund (PIF), announced a transaction that would combine each organization’s businesses and end all pending litigation between the PGA Tour and LIV Golf. Although many details of the transaction remain unknown, it is not expected to be structured as a merger. Instead, a new, for-profit entity would be formed in which PIF would invest billions of dollars and the PGA Tour likely would appoint a majority of the board. Despite all the fanfare surrounding the announcement, this transaction might not make the cut if the parties cannot avoid the tax traps and other obstructions that lie ahead.
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Chair, Tax; Co-Chair, Nonprofit and Social Impact