PGA Tour strikes new $3b deal

The PGA Tour is getting a $3 billion investment from Strategic Sports Group in a deal that would give players access to more than $1.5 billion as equity owners in the new PGA Tour Enterprises.

The launching of PGA Tour Enterprises, with SSG as a minority partner, comes eight months after the PGA Tour signed a framework agreement with the Saudi backers of LIV Golf for a commercial venture, and ultimately led to private equity groups wanting to join.

The AP obtained a copy of the announcement expected to be released yesterday morning. PGA Tour Commissioner Jay Monahan was holding a conference call with players about the deal that was finalised Tuesday night.

The Washington Post first reported the deal with SSG.

Collective investment

The tour still is negotiating with the Public Investment Fund of Saudi Arabia, which was not part of the deal. The tour said its partnership with SSG allows for a co-investment from PIF, 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 organisation’s ability to make the sport more rewarding for players, tournaments, fans and partners.”

The unique equity programme in golf would give some 200 players access to initial grants. Starting next year, PGA Tour Enterprises would make recurring grants for future players.

While specific details of the equity ownership programme 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 unique equity programme in golf would give some 200 players access to initial grants.