Connect with us

Published

on

The PGA Tour has agreed to merge with its Saudi-backed rival LIV Golf.

The shock announcement comes after a year of unprecedented disruption in the men’s professional game following the launch of the LIV Golf circuit.

The two tours signed an agreement that would combine the PGA Tour and LIV Golf’s commercial businesses and rights into a new, yet-to-be-named for-profit company. The agreement includes the DP World Tour, also known as the European PGA Tour.

Jay Monahan and Yasir Al-Rumayyan. Pics: AP
Image:
Jay Monahan and Yasir Al-Rumayyan. Pics: AP

The rival circuit launched in 2022 and has lured a number of big-name players from the PGA Tour, including Hall of Fame golfer Phil Mickelson, former world number one Dustin Johnson and reigning PGA Championship winner Brooks Koepka.

The LIV Golf series is bankrolled by the Saudi Arabia Public Investment Fund and critics have accused it of being a vehicle for the country to attempt to improve its reputation in the face of criticism of its human rights record.

In a statement, PGA Tour commissioner Jay Monahan said: “After two years of disruption and distraction, this is a historic day for the game we all know and love.

“This transformational partnership recognises the immeasurable strength of the PGA TOUR’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organisation that will benefit golf’s players, commercial and charitable partners and fans.”

As part of the deal, the sides are dropping all lawsuits against each other.

Brooks Koepka became the LIV golfer to win a major since the new tour formed
Image:
Brooks Koepka became the first LIV golfer to win a major since the new tour formed

It is unclear what form the LIV Golf League would take in 2024.

In response to the news, Mickelson, who had led prominent players away from the PGA Tour to help form LIV, tweeted: “Awesome day today”.

‘A momentous day’

DP World Tour chief executive Keith Pelley said: “This is a momentous day. We are delighted to be able to not only reignite our relationship with PIF, but also to have the opportunity to build on our current Strategic Alliance partnership with the PGA Tour.”

World number three Rory McIlroy had previously criticised players who joined LIV Golf
Image:
World number three Rory McIlroy had previously criticised players who joined LIV Golf

Reports first emerged of plans for a rival league to the PGA Tour as far back as 2019, but it was only in late 2021 that the proposal truly began to take shape. LIV Golf Investments was formed, with PIF – the sovereign wealth fund of Saudi Arabia – its majority shareholder.

An anti-trust lawsuit against the PGA Tour was originally filed last August by 11 golfers before being taken over by LIV Golf. It was due to be heard in 2024.

It’s a sensational sports truce and now it will be the PGA helping the Saudis launder their reputation


Rob Harris

Rob Harris

Sports correspondent

@RobHarris

It’s a sensational sports truce with significance beyond sport – further asserting Saudi wealth, status and soft power.

When LIV Golf split the world of golf by launching a rebel series last year, the established PGA Tour of America’s moral outrage couldn’t have been clearer.

The PGA claimed the Saudi sovereign wealth fund was using the “sport of golf to ‘sportswash’ the Saudi government’s deplorable reputation for human rights abuses”.

Hundreds of millions of pounds in signing on fees and prize money enticed stars, including former world No 1 Englishman Lee Westwood and six-time major winner Phil Mickelson, who were banished from the PGA for defecting.

Now it will be the PGA helping the Saudis launder their reputation through golf – announcing a merger by LIV that looks like a Saudi takeover.

In April, the DP World Tour won its legal battle against 12 LIV players who committed “serious breaches” of the Tour’s code of behaviour by playing in LIV Golf events without permission.

The subsequent increased fines and suspensions prompted Lee Westwood, Sergio Garcia, Ian Poulter and Henrik Stenson to resign their memberships and become ineligible for the Ryder Cup.

Those players could now return to the fold, with the tours pledging to establish a “fair and objective process” for players to re-apply for membership after the end of this season.

The decision to merge comes less than two weeks before the third major championship of the men’s golf season, the US Open.

Continue Reading

Business

Revealed: Partygate official’s role in Daily Telegraph sale

Published

on

By

Revealed: Partygate official’s role in Daily Telegraph sale

One of the government officials caught up in the Partygate scandal which engulfed Boris Johnson’s premiership is playing a key role in negotiating the future of The Daily Telegraph.

Sky News can reveal that former deputy cabinet secretary Helen MacNamara is among the advisors to RedBird IMI, the Abu Dhabi-backed vehicle whose acquisition of the broadsheet newspaper has effectively been blocked by the government in recent weeks.

Ms MacNamara, who was among those given fixed-penalty notices by police for attending lockdown parties in Downing Street during the COVID-19 pandemic, is working at Robey Warshaw, which is acing for RedBird IMI on its options for the onward sale of the media assets.

Her role at Robey Warshaw, where George Osborne, the former chancellor, is a partner, has not previously been disclosed, but sources close to the Telegraph process confirmed that she was actively involved in the discussions.

Money latest: Two major UK lenders up mortgage rates

Robey Warshaw has become one of the City’s most successful merger and takeover advisers since it was established by Sir Simon Robey, widely regarded as the most successful British investment banker of his generation.

Ms MacNamara was a highly regarded government official before leaving Whitehall in February 2021.

More from Business

Among her roles, she served for more than a decade at the Department for Culture, Media and Sport – the same ministry responsible for ruling on the fate of The Daily Telegraph as RedBird IMI negotiates over the structure of an auction expected to kick off within weeks.

Her reputation was, however, tainted by last year’s report by Sue Gray – a senior civil servant at the Cabinet Office who is now a key member of Sir Keir Starmer’s team – which concluded that Ms MacNamara had brought a karaoke machine to a leaving party which was prohibited under social distancing rules at the time.

During the Covid inquiry, it emerged that she had been the subject of misogynistic messages sent by Dominic Cummings, Mr Johnson’s top aide, to the then prime minister.

After leaving the civil service, Ms McNamara joined the Premier League, where she ran its policy and corporate affairs functions before stepping down after just two years.

She is understood to have been working at Robey Warshaw for several months.

Ms MacNamara is no longer bound by restrictions imposed by Whitehall’s Advisory Committee on Business Appointments.

Her involvement in the Telegraph process adds to the number of politically connected figures who are embedded in talks about the fate of the traditionally Conservative-supporting newspaper.

As well as Mr Osborne, that list includes Nadhim Zahawi, the former chancellor, who has been advising the Telegraph’s long-standing owners, the Barclay family.

Sky News revealed earlier this month that RedBird IMI and the DCMS were discussing amendments to the statutory instrument which dictates various elements of the Telegraph’s governance during the period in which the Abu Dhabi-backed vehicle holds a call option that was supposed to convert into ownership of the Telegraph and Spectator magazine.

An announcement about a workable structure could be made in the coming days, the Financial Times reported last week.

RedBird IMI is understood to believe that The Spectator could be worth £100m or more as a ‘trophy asset’ but that that valuation would be impaired if the magazine is sold in the same transaction as the newspapers.

Earlier this month, Sky News revealed that Raine Group, best-known in Britain for its roles in recent deals involving Manchester United and Chelsea football clubs, and Robey Warshaw were being lined up to advise on the next phase of the Telegraph’s ownership.

RedBird IMI, which is part-owned by US-based RedBird and majority-owned by Abu Dhabi’s IMI – which is backed by the UAE’s deputy prime minister and ultimate owner of Manchester City Football Club, Sheikh Mansour bin Zayed Al Nahyan – had argued that fears about its ownership of the Telegraph were unfounded.

The deal faced vehement opposition from Telegraph journalists and Conservative politicians from both houses of parliament.

RedBird IMI had sought to defuse controversy over the deal by offering legally binding assurances over editorial freedom, and in January restructured its bid to incorporate a new UK holding company which would own the Telegraph titles and Spectator magazine.

The takeover was rendered impossible, however, by the government’s adoption of legislative changes to prevent any ownership of British national newspapers by investors connected to foreign states.

Lucy Frazer, the culture secretary, has said she is minded to refer the RedBird IMI takeover of the Telegraph titles to an in-depth inquiry by the Competition and Markets Authority.

The fate of the Telegraph has been up in the air for almost a year after Lloyds Banking Group seized control of its parent companies after the Barclays fell behind on debt repayments.

Since then, a number of bidders including the Daily Mail proprietor Lord Rothermere and the GB News shareholder Sir Paul Marshall have shown an interest in buying the titles.

Sky News revealed this month that Sir Paul was stepping down from the board of the parent company of GB News, the television news channel he has helped to bankroll, as he prepares a fresh bid for the Telegraph.

A trio of independent directors of the Telegraph’s holding company were parachuted in by Lloyds Banking Group last year after the lender seized control of the newspapers from their long-standing owners, the Barclay family.

However, the sale process was pre-empted by RedBird IMI repaying £1.16bn of loans owed by the Barclays to Lloyds, with £600m used to purchase the call option and the remainder as a loan secured against other family assets, including the online retailer Very Group.

Earlier this year, the independent directors appointed to oversee the sale of The Daily Telegraph were warned by Ms Frazer that the removal of the newspaper’s two most senior executives breached a government order – and that any subsequent transgression could result in a multimillion pound fine.

RedBird IMI, Robey Warshaw and the DCMS declined to comment.

Continue Reading

Business

Getir ends European expansion with 1,500 UK job losses expected

Published

on

By

Getir ends European expansion with 1,500 UK job losses expected

Getir, the grocery delivery app, has abandoned a European expansion that is set to result in the loss of about 1,500 jobs in the UK.

Sky News had previously revealed that the Turkey-based company, which means “to bring” in Turkish, had successfully raised money from investors to fund its withdrawals from the UK, Germany and the Netherlands.

It had already departed other countries including Italy and Spain.

The exits were prompted by growing losses linked to the company’s rapid expansion.

Its UK competitors include Deliveroo and DoorDash.

The restructuring will leave Getir, which had a peak value of $12bn at the height of pandemic-linked demand, as a business focused on its domestic market.

Getir said it was to retain its US arm FreshDirect – only bought a few months ago.

More from Business

The company was yet to confirm exactly how many were to lose their jobs across the UK operation.

It is understood that it employs up to 1,500 people. They include warehouse staff, managers and riders.

Dejan Kulusevski of Tottenham Hotspur during trainin.
Pic: Alex Morton/Tottenham Hotspur FC/Shutterstock
Image:
Getir’s commercial partnerships include a sponsorship deal with Tottenham Hotspur. Pic: Pic: Alex Morton/Tottenham Hotspur FC/Shutterstock

In a statement on Monday, Getir said its non-Turkish business was accounting for only 7% of its revenues.

“Getir has raised a new investment round, led by Mubadala and G Squared.

“Getir will utilize these funds to bolster its competitive position in its core food and grocery delivery businesses in Turkey.

“Getir expresses its sincere appreciation for the dedication and hard work of all its employees in the UK, Germany, the Netherlands, and the US,” it concluded.

Continue Reading

Business

UK wet weather could push up price of bread, beer and biscuits

Published

on

By

UK wet weather could push up price of bread, beer and biscuits

The cost of bread, biscuits and beer could increase this year due to the impact of the unusually wet autumn and winter on UK harvests.

Research suggests that production of wheat, oats, barley and oilseed rape could drop by four million tonnes (17.5%) compared with 2023.

The wet weather has resulted in lower levels of planting, while flooding and storms over winter caused farmers more losses.

The predictions come just as the rate of price increases on many food items begins to slow as inflation falls.

Money latest: ‘Fundamental change to UK food supply’ as new Brexit rules begin

The Energy and Climate Intelligence Unit (ECIU) analysed forecasts from the Agriculture and Horticulture Development Board (AHBD) and government yield data.

It found a “real risk” of beer, biscuits and bread becoming more expensive if the poor harvest increases costs for producers, according to its lead analyst Tom Lancaster.

Beer prices could be affected because the wet weather is still disrupting the planting of spring crops such as barley, the ECIU said.

And potatoes might also see a price hike in the coming months, with growers warning of a major shortage in the autumn due to persistent wet weather.

Planting of this year’s potato crop has been delayed across much of northern Europe.

“It’s had a massive impact on us,” said Lincolnshire farmer Colin Chappell.

“We went through the winter with virtually nothing viable drilled, and while it’s now dry enough to plant some fields some of them are so bad I don’t think they’ll get drilled this year. The situation is very hit and miss.”

The National Farmers’ Union (NFU) said recently that extreme weather was one of the biggest dangers to UK food security.

Warmer and wetter winters similar are predicted to become more common as the climate warms.

Pic: iStock
Image:
Trouble planting barley could feed through to a more costly pint. Pic: iStock

Drop in production could be more than five million tonnes

The total drop in production could even be more than five million tonnes (21.2%) when compared with the average harvest for 2015-2023.

Wheat production could be particularly hard hit, according to the research, with an estimated fall of 26.5% compared with last year.

It’s because the milling wheat used for bread has higher quality requirements that will be harder for farmers to achieve with wet weather.

The owner of Kingsmill and Ryvita, Associated British Foods, warned last week of potential price hikes if the cost of grains in the UK aren’t offset by bigger harvests abroad.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Read more from Sky News:
Warmer weather on the way – with parts of Britain to get 20C
Cat found after being accidentally mailed in Amazon box

The ECIU’s Tom Lancaster said the government’s green farming schemes are vital in “helping farmers to invest in their soils to allow them to recover faster from both floods and droughts”.

With half of food coming from abroad, he said foreign farmers would also need support.

“Moving faster to net zero emissions is the only guaranteed way to limit these impacts and maintain our food security,” he added.

William Kendall, the farmer behind Green & Blacks chocolate, said “regenerative farming methods” were also important as they “greatly enhance the soil’s capacity to hold water and therefore prevent saturation”.

“Not only does this mean better crops, produced at a lower cost for the farmer,” he said, “but it ensures that the chances of the flash flooding downstream we have seen this winter are greatly diminished”.

Continue Reading

Trending