The PGA Tour logo is seen during the third round of the Travelers Championship at TPC River Highlands in Cromwell, Connecticut, on June 24, 2017.
Fred Kfoury | Sports Icon | fake images
A U.S. consortium has agreed to invest up to $3 billion in the PGA Tour, the professional golf organization announced Wednesday.
Under the terms of the deal, the investor, Strategic Sports Group, will become a minority owner of PGA Tour Enterprises, the PGA Tour's for-profit entity. The group will make an initial investment of $1.5 billion in the PGA Tour.
The second $1.5 billion of the investment is guaranteed, according to a source familiar with the talks. The PGA Tour will achieve this once negotiations with the Saudi Public Investment Fund are concluded. There is no deadline for those conversations to end.
The deal comes as the organization tries to chart its future in the face of competition from upstart LIV Golf and a proposed merger with the Saudi-funded league. The tour confirmed the progress of its ongoing negotiations with the PIF regarding possible future investment and its talks with the DP World Tour.
“Today marks 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 PGA Tour player directors.
As part of the new agreement with Strategic Sports Group, the tour said nearly 200 players will have the opportunity to receive equity ownership in the tour. These would be awarded in the form of grants, which are awarded over time and would be based on your professional achievements and your future participation and services on the tour.
“By making PGA Tour members owners of their league, we strengthen our players' collective investment in the success of the PGA Tour,” Monahan said.
Strategic Sports Group is led by John Henry of Fenway Sports Group. It 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 Wyc Grousbeck.
“Our enthusiasm for this new venture stems from a very deep respect for this remarkable game and a firm belief in the expansive growth potential of the PGA Tour,” said Henry, principal owner of Fenway Sports Group and manager of Strategic Sports Group.
Monahan and Henry held a player-only call to share the news with members Wednesday morning.
The investment comes at a crucial time for professional golf. The tumultuous rivalry between the PGA Tour and LIV Golf, backed by the Saudi PIF, has divided players, and a merger could dramatically change the sport.
The PGA Tour-LIV deal was first announced in June, when Monahan and Saudi Public Investment Fund Governor Yasir Al-Rumayyan announced the news on CNBC. It came as a surprise to many, as the two competing leagues were embroiled in a bitter legal dispute at the time.
Critics claimed the deal was a means for Saudi Arabia to gain influence in the United States through sports investments. Saudi Crown Prince Mohammed bin Salman controls the PIF.
LIV Golf, launched in 2022, was formed as a rival league to the tour. By offering lucrative prize money and signing bonuses, the Saudi-owned tour was able to attract top players such as Phil Mickelson, Dustin Johnson, Brooks Koepka and Jon Rahm.
The PGA Tour-LIV Golf deadline was originally set for December 31. Monahan previously told players that organizations were extending the deadline based on the progress they had made to date. A formal decision on the combination is expected to be made before the Masters Tournament in April.
The deal is subject to regulatory and Department of Justice approval.
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