Strategic alliance still ‘a focus’ as PGA Tour strikes $3bn deal
PGA Tour insists its Strategic Alliance with the DP World Tour “remains a focus” even though a $3 billion investment deal with Strategic Sport Group (SSG) is only set to benefit players on the US circuit in the first instance.
In the first programme of its kind, nearly 200 PGA Tour members will have the opportunitytobecomeequityholders in PGA Tour Enterprises, a new commercial venture under the circuit’s control.
Under the agreement with SSG, which includes Liverpool FC and baseball team Boston Redsoxownersfenwaysports Group, “qualified” PGA Tour players will collectively access over $1.5bn in equity based on career accomplishments, recentachievement,futureparticipation and services.
The new company doesn’t include any investment from Saudi Arabia’s Public Investmentfund(pif)but,according toastatement,“bothpartiesare working towards an ultimate agreement” following a framework agreement struck last year, though it will be subject to US Government regulations.
“Today marks an important moment for the PGA Tour and fans of golf across the world,” said Jay Monahan, the circuit’s commissioner and newly-appointed
CEO of PGA Tour Enterprises. “By making PGA Tour members owners of their league, we strengthen the collective investment of ourplayersinthesuccessofthe PGA Tour.
“Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible – and unmatched – competithe tive atmosphere created by our players, tournaments and partners. And partnering with SSG – a group with extensive experience and investment acrosssports,mediaandentertainment – will enhance our organisation’s ability to make the sport more rewarding for players,tournaments,fansand partners.”
The new venture has been launched after LIV Golf arrived on the scene in 2022, luring some of the game’s biggest names, including Phil Mickelson, Dustin Johnston and, more recently, Jon Rahm, for huge pots of money. Players who have stayed loyal to the Pgatourhavenowbeenhanded a chance to get very rich as well.
“We were proud to vote in unanimous support of this historicpartnershipbetweenpga Tourenterprisesandssg,”said player directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth andtigerwoodsinajointstatement.“itwasincrediblyimportant for us to create opportunities for the players of today and in the future to be more invested in their organisation, 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 arelookingforwardtothisnext chapter and an even brighter future.”
As for where the DP World Tour sits in all of this, only time willtell.butthepgatourstatementinsistedthestrategicalliancebetweenthetwotraditional tours “remains a focus” and added that it was in “active discussions on how to best work together for the continued benefit of all”.
$1.5bn in equity will be accessed by players on US circuit