The PGA Tour logo is seen during the third round of the Travelers Championship at TPC River Highlands on June 24, 2017 in Cromwell, Connecticut.
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The professional golf organization announced Wednesday that a U.S. consortium has agreed to invest up to $3 billion in the PGA Tour.
Under the terms of the agreement, investor Strategic Sports Group will become a minority shareholder in PGA Tour Enterprises, the for-profit entity of the PGA Tour. The group will make an initial investment of $1.5 billion in the PGA Tour.
The second $1.5 billion investment is guaranteed, according to people familiar with the negotiations. The PGA Tour will acquire the award once negotiations with the Saudi Public Investment Fund are completed. There is no deadline for ending these negotiations.
The agreement comes as the organization attempts to plan for its future in the face of competition from upstart LIV Golf and a proposed merger with a Saudi-funded league. The tour confirmed ongoing negotiations with PIF and progress in discussions with DP World Tour regarding potential future investments.
“Today is an important moment for the PGA Tour and golf fans around the world,” said PGA Tour Commissioner Jay Monahan.
The deal received unanimous support from the PGA Tour’s Player Directors.
As part of a new agreement with Strategic Sports Group, the tour has announced that around 200 players will have the opportunity to take an equity stake in the tour. These are awarded in the form of grants awarded over time and based on career performance and future tour participation and service.
“By making PGA Tour members owners of their own league, we can strengthen the players’ collective investment in the success of the PGA Tour,” Monahan said.
Strategic Sports Group is led by John Henry of Fenway Sports Group. Includes a variety of investors, private equity names, and sports owners, including Atlanta Falcons owner Arthur Blank, New York Mets owner Steve Cohen, and Boston Celtics owner Wyke Grousbeck. ing.
“Our enthusiasm for this new venture stems from our deep respect for this great game and the growing growth of the PGA Tour,” said Henry, principal owner of Fenway Sports Group and manager of Strategic Sports Group. “It comes from a firm belief in what’s possible.”
Monaghan and Henry held a player-only conference call Wednesday morning to share the news with the squad.
This investment comes at a pivotal time for professional golf. The bitter rivalry between the PGA Tour and Saudi Arabia’s PIF-backed LIV Golf has divided player opinion, and a merger could dramatically change the sport.
The PGA Tour’s deal with LIV was first announced in June when Monaghan and Saudi Public Investment Fund President Yasir Al-Rumayyan announced the news on CNBC. This came as a surprise to many, as the two competing leagues were engaged in a bitter legal battle at the time.
Critics argued that the deal was a way for Saudi Arabia to gain influence in the United States through sports investments. Saudi Arabia’s Crown Prince Mohammed bin Salman controls PIF.
LIV Golf was launched in 2022 as a rival league to the Tour. The Saudi-owned tour was able to lure top players such as Phil Mickelson, Dustin Johnson, Brooks Koepka and Jon Rahm by offering big prize money and signing bonuses.
The PGA Tour-LIV Golf deadline was originally set for Dec. 31. Monaghan previously told players that the deadline would be extended based on the progress each organization has made to date. The pairings will be officially decided ahead of the Masters Tournament in April.
The transaction requires approval from the Department of Justice and regulatory authorities.
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