Strategic Sports Group, a consortium of U.S.-based sports franchise owners, made an initial $1.5 billion investment to become minority owner of PGA Tour Enterprises, the PGA Tour told members in a call Wednesday morning.
PGA Tour player directors Tiger Woods, Patrick Cantlay, Peter Mainati, Adam Scott, Webb Simpson and Jordan Spieth voted unanimously in support of the three-part equity investment that commissioner Jay Monahan said affords “nearly 200 PGA Tour members” a chance to “become equity holders in this new company.”
“It was incredibly important for us to create opportunities for the players of today and in the future to be more invested in their organization both financially and strategically,” the player director board said in joint statement. “This not only further strengthens the Tour from a business perspective, but it also encourages the players to be fully invested in continuing to deliver — and further enhance — the best in golf to our fans. We are looking forward to this next chapter and an even brighter future.”
In a memo outlining more granular details of the deal that could be worth more than $3 billion, Monahan noted progress toward an agreement with LIV Golf, which is not yet a part of the for-profit entity introduced formally to PGA membership. Only PGA Tour members can “collectively access over $1.5 billion in equity” over time based on “career accomplishments, recent achievements, future participation and services,” per the PGA Tour release.
“By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour. Fans win when we all work to deliver the best in sports entertainment and return the focus to this incredible — and unmatched — competitive atmosphere created by our players, tournaments and partners.”
The investment from SSG welcomes the potential for another $3 billion investment — possibly more — from the Saudi Public Investment Fund, which started the competing circuit. The memo sent to players makes clear any PIF investment can be accepted “subject to any necessary regulatory review and approvals.”
SSG, managed by Boston Red Sox owner and Fenway Sports Group manager John Henry, permits the PGA Tour to remain the majority stakeholder in PGA Tour Enterprises under terms of the arrangement.
“We greatly appreciate the opportunity to join PGA Tour players in this important next phase of the PGA Tour’s evolution,” Henry said. “Our enthusiasm for this new venture stems from a very deep respect for this remarkable game and a firm belief in the vast growth potential of the PGA Tour. We are proud to partner with this historic institution and are eager to work with the PGA Tour and its many members to grow and strengthen the game of golf globally.”
Monahan shared the details of the new investment with PGA Tour members in a “listen only” call, with follow-up sessions scheduled for members to open further dialogue.
FSG and other U.S. sports franchise ownership groups, including the New York Mets’ Steve Cohen and the Atlanta Falcons’ Arthur Blank, formed Strategic Sports Group in order to engage with the tour about helping fund PGA Tour Enterprises. FSG immediately steps into the role of commercial adviser for PGA Tour Enterprises.
Monahan and PIF governor Yasir Al-Rumayyan met in Saudi Arabia last week to continue talks geared toward an agreement between the two leagues.
After they originally self-imposed a Dec. 31 deadline to finalize an agreement, the sides pushed it back to extend their negotiations.
SSG was brought into the fray in December and the significant financial backing could bring a semblance of leverage to negotiations between the tours. The PGA Tour policy board held meetings and is scheduled to meet again prior to this week’s AT&T Pebble Beach Pro-Am in California.
A merger likely would include the PGA Tour, PGA Tour Champions, the DP World Tour and Korn Ferry Tour members in some combination with LIV Golf, which already has scheduled 2025 events.
–Field Level Media
