The PGA Tour has completed a historic investment deal with Strategic Sports Group worth around $3 billion through its new commercial venture PGA Tour Enterprises, the long-standing circuit has confirmed.
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 preparing to inject the money into PGA Tour Enterprises which will increase the for-profit entity's valuation up to around $12 billion.
A statement from CEO Jay Monahan revealed that - as part of the agreement - almost 200 PGA Tour members will collectively be able to earn circa $1.5 billion in immediate and future equity shares, with players receiving more depending on career achievements, recent accomplishments, and how high up the rankings they sit.
Reacting to the deal, Monahan said: “Today marks an important moment for the PGA Tour and fans of golf across the world. 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 the incredible – and unmatched – competitive atmosphere created by our players, tournaments and partners.
"And partnering with SSG – a group with extensive experience and investment across sports, media and entertainment – will enhance our organization’s ability to make the sport more rewarding for players, tournaments, fans and partners.”
Despite a deal coming to fruition between the two parties, further investment from the Saudi Arabian Public Investment Fund - which could lead to a re-unified game - is not off the table, say the PGA Tour.
Instead, “the transaction announced today allows for a co-investment from the Public Investment Fund (PIF) in the future, subject to all necessary regulatory approval.” According to Barstool Sports golf reporter, Dan Rapaport, the checks "could take a while" and nothing is expected imminently.
US government officials have previously expressed their opposition to any deal with the Saudi PIF, although the dominant influence of the American investment involved may move to allay concerns and allow the deal to pass.
The Sports Business Journal's Josh Carpenter has said that 2026 would be "a logical starting point" for all tours to realign as "many believe Department Of Justice approval would take a year at minimum."
Many believe DOJ approval would take a year at minimum, which makes 2026 a logical starting point for when all sides would be "unified." https://t.co/DczMZ4AF4oJanuary 31, 2024
The PGA Tour's statement continued: "In addition, today the PGA Tour confirmed progress in its ongoing negotiations with PIF on a potential future investment and both parties are working towards an ultimate agreement. SSG has consented to an investment by PIF, subject to any necessary regulatory review and approvals.
"Additionally, the PGA Tour’s Strategic Alliance with the DP World Tour remains a focus. As close partners, the DP World Tour was included in the original framework discussions and agreement announced last year, and the Tour is in active discussions on how to best work together for the continued benefit of all."
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 Saudi Arabian PIF "in the weeks to come."
Per a report from CBS Sports on January 1, PIF chairman Yasir Al-Rumayyan was unhappy about LIV being replaced at the forefront of negotiations by the American private equity group 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.
Since the signing of Rahm was sealed, LIV have gone on to acquire a handful more of the PGA Tour's top talent, including Tyrrell Hatton, Adrian Meronk, and Lucas Herbert.
As expected… there wasn’t a ton from the player call that explained it more than the press release. It was an introductory call. SSG are investors to the pgatour. Players are equity holders. They will use the money to invest more into the pgatour and hopefully the fans will have…January 31, 2024
All of the PGA Tour's current members were invited to a call on Wednesday which reportedly explained how the SSG deal might look to them. Michael Kim revealed on X that while "there wasn't a ton that explained it more than the press release"... "everybody on the call seemed genuinely excited."
He wrote: "As expected… there wasn’t a ton from the player call that explained it more than the press release. It was an introductory call. SSG are investors to the pgatour. Players are equity holders.
"They will use the money to invest more into the pgatour and hopefully the fans will have a better experience from it. Everybody on the call seemed genuinely excited. The PIF negotiations are still being worked out."
