The PGA Tour has struck an investment deal worth billions of dollars with a consortium made up of owners of major US sports teams including John Henry and Arthur Blank, it confirmed on Wednesday.
Golf’s old order closed on an investment of up to $3billion with Strategic Sports Group, a consortium led by Fenway Sports Group – the owners of Premier League club Liverpool and MLB franchise Boston Red Sox.
The partnership also ushered in the launch of PGA Tour Enterprises, a venture that will see nearly 200 Tour members have the opportunity to access over $1.5billion in equity.
The deal comes eight months after the PGA Tour signed a framework agreement with the Saudi backers of LIV Golf for a commercial venture.
Negotiations between the PGA Tour and Public Investment Fund are ongoing after the initial December 31 deadline was missed and LIV Golf’s financiers were not included as part of the transaction with SSG.
The PGA Tour confirmed a $3billion investment deal with consortium Strategic Sports Group
Strategic Sports Group is led by Liverpool’s owner Fenway Sports Group’s John W Henry (left)
Saudi Arabia’s PIF (pictured governor Yasir Al-Rumayyan) is still in negotiations with PGA Tour
But Wednesday’s memo confirmed that a future co-investment from the Saudi Arabian fund was still on the table, subject to regulatory approval.
‘By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour,’ Monahan, who will be CEO of PGA Tour Enterprises, said in the formal announcement.
He said a partnership with SSG – a group comprised of American owners and executives of pro sports franchises – will ‘enhance our organization´s ability to make the sport more rewarding for players, tournaments, fans and partners.’
SSG is led by Fenway Sports Group and includes owners Marc Attanasio (Milwaukee Brewers); Arthur Blank (Atlanta Falcons); Steven Cohen (New York Mets); Wyc Grousbeck (Boston Celtics); Tom Werner and John Henry (Boston Red Sox); Marc Lasry (Milwaukee Bucks). Others in the group include Alec Scheiner, former Cleveland Browns president and a partner at RedBird Capital.
‘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, the principal owner of Fenway Sports and manager of SSG.
SSG is investing an initial $1.5 billion into PGA Tour Enterprises and will concentrate on maximizing revenue for the benefit of the players and on finding opportunities to enhance golf across the world. Another $1.5 billion would go toward PGA Tour business.
The unique equity program in golf would give some 200 players access to initial grants, which are only available to qualified PGA Tour members.
Starting next year, PGA Tour Enterprises would make recurring grants for future players.
Arthur Blank, owner of the Atlanta Falcons (L), and Mets owner Steve Cohen are also involved
While specific details of the equity ownership program were not announced, the initial grants would be based on career accomplishments, recent achievements and PGA Tour status. The grants would vest over time.
The deal was unanimously approved by the PGA Tour board, which includes six players – Tiger Woods, Patrick Cantlay, Adam Scott, Jordan Spieth, Webb Simpson and Peter Malnati.
‘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,’ the player directors said in a joint statement.
‘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 Tour also stressed that its Strategic Alliance with Europe’s DP World Tour remains a priority.
The deal was unanimously approved by the PGA Tour board, which includes Tiger Woods
The DP World Tour was included in the June 6 framework agreement and the PGA Tour said that it remained in active discussions on how they can work together for the ‘benefit of all.’
The tour said it was making progress in its negotiations with the Saudi national wealth fund on future investments and an ultimate agreement. Under the original framework agreement, Yasir Al-Rumayyan, the PIF governor, was to be chairman of PGA Tour Enterprises. It was not clear how the partnership with SSG affects that.
The tour said SSG has agreed to any investment by PIF, subject to the necessary review and approval.
A congressional committee led by Sen. Richard Blumenthal, D-Conn., on Monday sent a letter to Al-Rumayyan asking that he cooperate in allowing the committee to subpoena four US consulting firms working for PIF.
