PGA Tour Signs $3 Billion Deal With Strategic Sports Group
Billions of investment dollars are coming to the PGA Tour, but the deal does not yet involve Saudi Arabia’s Public Investment Fund, the backer of LIV Golf. Late Tuesday evening, the PGA Tour struck a deal with Strategic Sports Group (SSG)—a group of prominent American sports owners—to contribute a total of $3 billion to its new for-profit company.
According to a memo emailed to players Wednesday morning and obtained by Sports Illustrated, the investment will provide PGA Tour players ownership access in their league. The access includes an initial $1.5 billion to PGA Tour Enterprises, constituting equity opportunities for “nearly 200 PGA Tour members.”
Here’s the full three-page memo sent to PGA Tour players about the Strategic Sports Group deal on Wednesday a.m.
— Gabby Herzig (@GabbyHerzig) January 31, 2024
- $3 billion total investment, led by Fenway Sports Group
- Initial $1.5 billion in equity opportunities for “nearly 200 PGA Tour members”
- Co-investment from Saudi… pic.twitter.com/nXjQVIRFAv
“These grants — which vest over time — will be based on career accomplishments, recent achievements, future participation and services and PGA Tour membership status, and grants are only available to qualified PGA Tour players,” the statement read.
SSG’s total strategic investment in the Tour to “enhance the game of golf across the world” will reach $3 billion.
The “merger” between the PGA Tour, DP World Tour and PIF, which was first announced with the June 6 “framework agreement” has yet to be hammered out as negotiations extend into their eighth month. But according to Wednesday’s PGA Tour memo, the unanimous decision to sign the SSG investment deal leaves open the option to integrate future investment from the PIF.
“The transaction announced today allows for a co-investment from the Public Investment Fund (PIF) in the future, subject to all necessary regulatory approvals,” the memo read.
“Today the PGA Tour confirmed its progress in its ongoing negotiations with PIF on a potential future investment and both parties are working toward an ultimate agreement.”
A finalized deal between the PIF, PGA Tour and DP World Tour would mark the long-awaited unification of men’s professional golf.
The SSG deal was announced to players on a 9:30 a.m. Zoom call with PGA Tour, DP World Tour and Korn Ferry Tour members, hosted by PGA Tour commissioner Jay Monahan.
PGA Tour player directors released a joint statement supporting the deal.
“We were proud to vote in unanimous support of this historic partnership between PGA Tour Enterprises and SSG,” said Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods . “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. 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.”
The SSG is led by Fenway Sports Group, which owns the Boston Red Sox, Fenway Park and Liverpool Football club.
The investors who comprise the private group are as follows: Fenway Sports Group, John W. Henry, Steven A. Cohen, Arthur M. Blank, Tom Werner, Mike Gordon, Sam Kennedy, Andrew B. Cohen, Mark Attanasio, Wyc Grousbeck, Avenue Sports Fund, Linda Henry and Alex Scheiner.
Several of SSG’s investors are involved in TGL—the simulator golf league co-founded by Rory McIlroy and Tiger Woods—which has been postponed until 2025 due to stadium malfunctions. New York Mets owner Cohen owns TGL New York, Atlanta Falcons owner Blank owns Atlanta Drive GC and Fenway Sports Group owns Boston Common Golf.