PGA Tour receives $3 billion investment, LIV Golf deal uncertain

The PGA Tour is on the brink of securing a historic $3 billion investment from Strategic Sports Group (SSG), according to a report. bloomberg and wall street journal.

This initial investment is large, not only for financial reasons, but also because it does not include the Saudi Public Investment Fund (PIF), which is LIV Golf’s beneficiary. Last June, the PGA Tour, DP World Tour and PIF signed a framework agreement in which the parties work toward a formal agreement that unites the golf community.

However, the agreement between golf’s key stakeholders remains in flux.

This agreement between SSG and the PGA Tour does not include a PIF; bloomberg SSG and the PGA Tour will reportedly continue to discuss how to incorporate Saudi Arabia’s sovereign wealth fund in the near future.

but bloomberg He also stated that any investments may be subject to change depending on how discussions develop.

Nevertheless, on the PGA Tour, LIV Golf has poached top talent such as Jon Rahm and, most recently, world No. 16 Tyrell Hatton. Phil Mickelson, Brooks Koepka, Bryson DeChambeau and other big-name players have jumped onto the Saudi-backed circuit, receiving hefty salaries for participating in breakaway leagues. Each LIV Golf event has his $20 million purse, and players have the opportunity to win more cash through team competition.

Photo credit: David Cannon/Getty Images

PIF has over $700 billion in assets and has poured more than $2 billion into LIV Golf since its founding in 2022.

The PGA Tour responded to these actions by creating the lucrative Player Impact Program (PIP), which increases purse size and awards the most popular players. In doing so, the Tour had no choice but to squeeze more money out of corporate sponsors. Since then, some partners have pulled out, citing soaring tour costs, including longtime supporters Honda and Wells Fargo.

But the tour cannot compete with foreign sovereign wealth funds, much less with countries that power the world with oil.

As such, the PGA Tour recognized the need for additional capital to support the circuit and began discussions with SSG this fall. SSG includes Boston Red Sox and Liverpool FC owner John Henry, New York Mets owner Steve Cohen, Atlanta Falcons owner Arthur Blank, and Avenue Capital Group CEO Marc Lasry. It will be done. Lasry was the owner of the Milwaukee Bucks from 2014 to 2023. SSG also includes other billionaires.

In addition to making significant investments in the PGA Tour, SSG could help transform the tour’s business model to “increase profitability and bring more money to players.” wall street journal.

But if the deal with PIF falls through, the PGA Tour will at least receive a much-needed investment from SSG.

And with SSG’s support, an agreement with PIF doesn’t seem as secure as it once was.

Jack Mirko is a golf staff writer for SB Nation’s Playing Through.Be sure to check it out @_PlayingThrough Cover more golf. You can follow him on Twitter @jack_milko In the same way.