The PGA Tour is close to completing a historic investment deal worth $3 billion with Strategic Sports Group, according to a report by Bloomberg.
The consortium - led by Fenway Sports Group and also including New York Mets owner Steve Cohen’s Cohen Private Ventures, Atlanta Falcons owner Arthur Blank, and former Milwaukee Bucks co-owner Marc Lasry - is prepared to inject the money into PGA Tour Enterprises right away and will inflate the for-profit entity's valuation up to around $12 billion, per Bloomberg.
According to anonymous sources close to the deal who spoke to Bloomberg, the initial agreement may not include LIV Golf. However, the Saudi Arabian Public Investment Fund - which backs LIV - could well pump additional capital in at a later date as talks continue about how to include the PGA Tour's direct competitor.
This potential deal arrives just weeks after the PGA Tour, DP World Tour, and PIF opted to extend the deadline for negotiations to be completed surrounding a framework agreement - put into place during the summer of 2023 - past the initial date of December 31.
It was hoped that a new deal could be completed well before April's Masters and ideally prior to the PGA Tour's flagship event in March - The Players Championship.
Shortly before Christmas, the PGA Tour's Policy Board confirmed it has entered into advanced negotiations with the Fenway-led consortium while announcing that it would also be continuing its discussions with the PIF "in the weeks to come."
A PGA Tour statement continued: "Further, the DP World Tour will continue to be an important part of the process as we build toward PGA Tour Enterprises. Please know that while we can't get into more details at this time, we are very confident in an eventual, positive outcome for all players and the PGA Tour as a whole."
According to a report from CBS Sports, PIF chairman Yasir Al-Rumayyan was deeply unhappy about LIV being usurped at the centre of negotiations by American private equity and responded by signing World No.3 Jon Rahm from the PGA Tour in an effort to pull the chips back over to his side of the table.
American government officials have previously expressed their opposition to any deal with PIF, although the dominant influence of the US investment involved may move to allay concerns and allow the deal to pass.
