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Fenway Sports Group’s Strategic Sports Group is “close to making an investment that could approach $3 billion” in the PGA Tour, a person familiar with the matter told the Boston Globe’s Michael Silverman. told.
Silverman said it will be a minority stake in a new commercial entity called PGA Tour Enterprises, which will include commercial rights, according to the tour’s website. It remains unclear whether the Saudi-backed Public Investment Fund will play a role in PGA Tour Enterprises.
Strategic Sports Group was informed in December that it had unanimously decided to continue negotiations for a potential partnership with PGA Tour Enterprises.
In June, the PGA Tour announced it had agreed to merge with LIV Golf, a Saudi-backed league that several tour players left the PGA to join. According to the PGA, the merger was a “groundbreaking agreement to unify the game of golf on a global scale.”
LIV Golf is a Saudi-backed league launched in 2022 and funded by Saudi Arabia’s Public Investment Fund.
The merger was reportedly investigated by the Justice Department shortly after it was announced, citing antitrust concerns.
The Wall Street Journal said, “The Justice Department investigation, which is already probing the PGA Tour and other major golf organizations for anticompetitive conduct, also concerns a planned deal between the PGA Tour and Saudi Arabia’s Public Investment Fund.” “This has created uncertainty for the joint venture that is currently underway.” June. “It is also more likely that deals concluded between rivals will not take effect for some time.”
A PGA Tour executive told the Wall Street Journal that the outcome of the merger between the two golf companies “will likely not be known for at least a year.”
Both parties had extended the deadline to reach a merger agreement until December 31, 2023, but no resolution was reached. Commissioner Jay Monahan said via CNBC that the goal for 2024 is to “reach an agreement with Strategic Sports Group, Saudi Arabia’s Public Investment Fund and DP World Tour.”
The sport of professional golf has been at odds since LIV was introduced several years ago. The $3 billion investment is likely to play a major role in unifying the sport.
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