PGA TOUR inks historic $3bn deal

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PGA TOUR Commissioner Jay Monahan (left) and John W. Henry, Principal Owner of Fenway Sports Group and Manager of the Strategic Sports Group, finalize the launch of PGA TOUR Enterprises

The US PGA Tour has made a groundbreaking announcement of a lucrative deal valued at up to $3 billion with a consortium of billionaire sports team owners. This collaboration has given birth to PGA Tour Enterprises, a profit-oriented entity placed under the control of the PGA Tour. Notably, nearly 200 PGA Tour players now have the exclusive opportunity to become equity holders in this newly established company.

The consortium, named Strategic Sports Group (SSG), features influential sports entities like Fenway Sports Group, owners of Liverpool FC, MLB’s Boston Red Sox, and the NHL’s Pittsburgh Penguins. Other notable figures in SSG include MLB’s New York Mets owner Steven Cohen and Arthur Blank, owner of NFL’s Atlanta Falcons and MLS’s Atlanta United.

Under this extensive program, players collectively gain access to over $1.5 billion in grants, gradually vested over time. SSG commits an initial investment of $1.5 billion, with the potential for an additional $1.5 billion later. The goal is to maximize revenue for the benefit of players while simultaneously advancing global golf growth opportunities.

Jordan Spieth, a three-time major winner and PGA Policy Board member, expressed unanimous player support for the deal. Spieth underscored the importance of navigating future media rights deals and optimizing content monetization, recognizing SSG’s pivotal role in shaping the growth of the newly formed entity, Newco.

Spieth emphasized the transformative nature of the deal, noting that players are not only associated with the tour but also serve as equity owners, fostering a collective commitment to enhancing the product. The PGA Tour also announced progress in ongoing merger discussions with the Saudi Arabian Public Investment Fund (PIF), backers of the LIV Golf League. This agreement allows the PIF to make future investments in PGA Tour Enterprises, marking a significant step towards a comprehensive merger framework initially announced in June. Both parties are actively working towards a final agreement.

 


Photo – PGA TOUR


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