Flaherty’s resignation was confirmed in a memo to members by PGA Tour boss Jay Monahan on 19 May.
It means he is the second director to step down from the role in a week.
Flaherty follows Rory McIlroy’s ally Jimmy Dunne out the door.
Dunne was one of the prime architects of the 6 June 2023 framework agreement Saudi Arabia’s PIF.
He reached out to LIV Golf mastermind Yasir Al-Rumayyan over WhatsApp and met with the influential Saudi businessman in a series of secret meetings across the globe.
It was a move that incensed many high-profile golfers, including 15-time major champion Tiger Woods.
Woods joined the policy board last August and warned the likes of Monahan and his officials that no such agreement could ever be made again without the members’ prior knowledge.
It appears little progress has been made between the parties to make peace.
Dunne alluded to that in his resignation letter that was leaked before last week’s PGA Championship at Valhalla.
He claimed his role had become ‘ utterly superfluous’ and he had been given the cold shoulder by the other player directors, seemingly still angry over the fact the agreement was made in secret.
Woods denied this was the case and claimed he was surprised at Dunne’s decision.
Jordan Spieth, too, also took a dim view of Dunne’s claims.
McIlroy, 35, bemoaned the loss of Dunne after he was thwarted in his attempt to rejoin the board and advance negotiations.
“Jimmy was basically the relationship, the sort of conduit between the PGA Tour and PIF,” McIlroy said.
“It’s been really unfortunate that he has not been involved for the last few months, and I think part of the reason that everything is stalling at the minute is because of that.”
McIlroy said his hopes a deal could be agreed between the PGA Tour and PIF had never been lower.
Flaherty made no mention of LIV talks in his resignation letter.
His involvement with the board pre-dates the arrival of LIV.
After a four-and-a-half year term, he wrote: “I would like to extend my heartfelt thanks to commissioner Monahan and chairman [Ed] Herlihy for their leadership in driving a successful business and product agenda; it is one that consistently prioritizes our fans, players, title sponsors, media, tournaments, marketing partners and volunteers.
“Additionally, I want to express my sincere appreciation to the dedicated staff at the PGA Tour who work tirelessly to support the board and ensure the flawless execution of our events each week, thus providing a superior product for the golf world to enjoy.
“Thank you to everyone for your support throughout my tenure on the policy board.
“Warm regards, Mark Flaherty”
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Source: USA Today