Jimmy Dunne, who final yr helped negotiate the PGA Tour’s controversial framework settlement with Saudi Arabia’s Public Funding Fund, resigned from the tour’s coverage board on Monday.
In Dunne’s resignation letter, a replica of which was obtained by ESPN, Dunne wrote that “no significant progress has been made in direction of a transaction with PIF” and that “my vote and my position is completely superfluous” now that participant administrators outnumber impartial administrators on the coverage board. Dunne’s resignation was efficient instantly.
“It’s essential for the Board to keep away from letting yesterday’s variations intrude with immediately’s choices, particularly once they affect future alternatives for the tour,” Dunne wrote. “Unifying skilled golf is paramount to restoring fan curiosity and repairing wounds left from a fractured recreation. I’ve tried my finest to maneuver all minds in that route.”
Together with PGA Tour commissioner Jay Monahan, Dunne and coverage board chairman Ed Herlihy secretly negotiated the framework settlement with the PIF, which is financing the rival LIV Golf League. Monahan and PIF governor Yasir Al-Rumayyan introduced the deal on June 6. Most PGA Tour gamers — together with some participant administrators — have been unaware of the deal till it was introduced on TV.
The framework settlement expired Dec. 31, however the sides have continued to attempt to negotiate a deal. Monahan and participant administrators, together with Tiger Woods, met with Al-Rumayyan within the Bahamas on March 18.
On the Masters in April, Woods mentioned the assembly was productive.
“I do not know if we’re nearer, however actually we’re headed in the correct route,” Woods mentioned. “That was a really optimistic assembly, and I believe either side got here away from the assembly feeling optimistic.”
The PGA Tour did strike a cope with Strategic Sports activities Group, a consortium of billionaire American sports activities staff house owners and others, to take a position as much as $3 billion into PGA Tour Enterprises, a brand new for-profit entity.
In a memo, obtained by ESPN Monday evening, despatched to Tour golfers, Monahan addressed the developments, saying “I would prefer to thank Jimmy for his steadfast service to this group since he joined the Board in January 2023, to not point out his numerous contributions to the sport of golf that span a long time.”
Monahan, within the memo, additionally added “we proceed to make significant progress behind the scenes in our negotiations towards a possible settlement with the PIF. Our objective stays to ship the very best consequence for the PGA Tour, our gamers, companions, tournaments and followers,” earlier than concluding that “out of respect for the PGA Championship, we is not going to be making any further public feedback on this matter.”
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Dunne, a Wall Avenue dealmaker, testified concerning the tour’s potential cope with the Saudis in entrance of the U.S. Senate Everlasting Subcommittee on Investigations on July 11. Monahan was taking a depart of absence for well being causes on the time of the listening to.
Dunne recommended in his resignation letter on Monday that he had been lower out of the negotiations with the Saudis. His resignation comes lower than every week after PGA Tour star Rory McIlroy instructed reporters that sure folks on the coverage board have been “uncomfortable” with him returning to the board.
McIlroy resigned from the coverage board in November. Participant director Webb Simpson was ready to step down — if McIlroy changed him to assist get a deal carried out with the Saudis.
Together with Woods and Simpson, the participant administrators are Patrick Cantlay, Jordan Spieth, Adam Scott and Peter Malnati. Former tour member Joe Ogilvie is a board liaison.
On Thursday, the tour introduced that former Valero Vitality Corp. CEO Joseph W. Gorder had been elected to function the inaugural chairman of PGA Tour Enterprises’ board of administrators and that McIlroy could be a part of a transaction committee that might deal with the tour’s negotiations with the PIF.
Gorder, now government chairman of Valero Vitality’s board, additionally will serve on the transaction committee, together with Fenway Sports activities Group founder and principal proprietor John W. Henry, Monahan, Scott, Woods, McIlroy and Ogilvie.
Dunne and Herlihy have been left off the transaction committee.
“Gamers have misplaced belief within the board due to the backdoor offers and the governance,” one PGA Tour member, not licensed to formally communicate on the state of affairs, instructed ESPN on Monday. “The extra gamers are getting concerned, the extra they notice issues aren’t being run like they need — from the highest down. The gamers have instructed the remainder of the board they need to run it and do not belief the board. While you lose religion within the head man, not one of the gamers are going to concentrate anymore.”
Dunne didn’t reply to ESPN’s request for remark.
