The PGA Tour Secures $3 Billion USD From US Sports Team Owners
Forming a new for-profit entity called PGA Tour Enterprises.
Amid talks of a PGA Tour and LIV Golf merger, the PGA Tour appears to have strengthened its bargaining position. Although the two sides previously set a December 31 deadline to iron out details to combine their commercial assets, the dynamic of the discussions will now shift.
Strategic Sports Group (SSG), a new group of investors comprised of billionaire US sports team owners including Tom Werner and John Henry of Fenway Sports Group, Steven Cohen of the New York Mets, Tom Rickets of the Chicago Cubs and others, will inject $3 billion USD into a new, for-profit entity called PGA Tour Enterprises. SSG will have a minority stake in the new business, while the PGA Tour will be the majority shareholder and attempt to secure additional investment from the Saudi Public Investment Fund that supports LIV Golf.
PGA Tour members are being informed this morning of the deal, which according to the Financial Times includes an equity participation program for players. This could be an important inclusion for players who decided to turn down guaranteed money from LIV Golf and remain loyal to the tour. The PGA Tour’s own Rory McIlroy, who resigned from the PGA Tour policy in November, has softened his stance on LIV Golf, saying this week at the AT&T Pebble Beach Pro-Am that “it would be much better being together and moving forward together for the good of the game. That’s my opinion of it. So to me, the faster that we can all get back together and start to play and start to have the strongest fields possible I think is great for golf.”
LIV Golf, meanwhile, is starting its 14-event 2024 schedule this week in Mexico. It remains to be seen how the two tour schedules could be combined.
