In a historic and shocking move, the PGA Tour announced a merger with the Saudi-backed LIV Golf on Tuesday. Yahoo Finance spoke to experts, analysts, and reporters to discuss the impact of the deal on the sports industry, the economy, and the markets.
Yahoo Finance markets reporter Josh Schafer discussed the details of the merger and its impact on the markets. Schafer said, "The Saudi public investment fund will be bankrolling a large portion of that new league to create this big, giant gold conglomerate. You can see golf stocks today have actually popped on this."
Wedbush Managing Director and Senior Equity Analyst Dan Ives provided his instant reaction. Ives said, "I'd call this, as a huge golf fan, an absolute shocker."
Yahoo Finance anchor Akiko Fujita examined some of the reasons why the deal may have happened. Fujita said, "On the PGA side, it was about the Saudis ... we would never go near that. At the end of the day, it's business."
David Mazza, Roundhill Investments Chief Strategy Officer, discussed the business implications of the deal. Mazza said, "There are a smaller and smaller handful of companies that are gobbling up everything."
Lisa Ellis, Senior Equity Analyst at MoffettNathanson, provided her reaction upon hearing the news. Ellis said, "I don't fully understand either the process by which this happened or the premise of it, especially given that the tours were already under a bit of regulatory scrutiny."
Yahoo Sports Reporter Jay Busbee analyzed the new business partnership between the PGA Tour and LIV Golf. Busbee said, "From a business perspective, this was kind of always how the story was going to end as long as Saudi Arabia stayed interested."
Mark Patricof, Founder and CEO of Patricof Co, talked about the implications of the merger on golf and the sports industry. Patricof said, "This was all about money. I don't ever think it was (about) anything else."
Hussein Ibish, Senior Resident Scholar at the Arab Gulf States Institute, examined the reasoning behind the deal for Saudi Arabia. Hussein said, "This PGA merger, it's designed not only to diversify Saudi Arabia's economic holdings, but also to help its image internationally."
00:00:03 - Yahoo Finance markets reporter Josh Schafer
00:00:25 - Wedbush Managing Director and Senior Equity Analyst Dan Ives
00:00:33 - Yahoo Finance anchor Akiko Fujita
00:00:50 - Roundhill Investments Chief Strategy Officer David Mazza
00:00:59 - MoffettNathanson Senior Equity Analyst Lisa Ellis
00:01:18 - Yahoo Sports Reporter Jay Busbee
00:01:33 - Founder and CEO of Patricof Co Mark Patricof
00:01:49 - Arab Gulf States Institute Senior Resident Scholar Hussein Ibish