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It’s unclear how close the deal actually is to a final decision, but Jordan Spieth believes there is no longer a need for the PGA Tour to reach a deal with LIV Golf or Saudi Arabia’s Public Investment Fund.
Spieth spoke after the Tour announced a $3 billion investment deal with Strategic Sports Group on Wednesday.
“I don’t think it’s necessary,” Spieth said Wednesday at the AT&T Pebble Beach Pro-Am. “I think the positive thing is unity. [for the sport] …But we have a strategic partner and the idea is that the PGA Tour can move forward with the way it currently operates without the option of other investors. ”
The tour announced Wednesday that SSG has invested up to $3 billion in the tour. The deal will lead to the launch of PGA Tour Enterprises, a tour-controlled commercial venture in which players will have an equity stake. This investment will give players the right to acquire over $1.5 billion in stock.
PIF, which backs LIV Golf, is not included in the deal, but “subject to all necessary regulatory approvals, co-investment from the Public Investment Fund will be permitted in the future.” The Tour and LIV Golf have not yet finalized the partnership, which was expected to be completed by the end of 2023. LIV Golf begins its season this week in Mexico.
“I think the best thing about this game is that the players are now the owners,” Spieth said. “So not only are they making money off the tour, but now they own the stock, so they want to drive the tour themselves and make the product better themselves. It’s not like they didn’t have it before. No, but you directly benefit from owning the work. So I think that part is probably the best part of fundraising.”
So, for now, the tour will continue as scheduled, but with more money in place to help raise money and pay players, and without having to rely on Saudi funding. Spieth, who joined the tour’s player policy committee after Rory McIlroy resigned late last year, is playing this week at Pebble Beach, his second designated tournament of the season.
The Tour and LIV Golf may eventually reach an agreement. But now, thanks to the deal with SSG, the Tour is in a much better position financially. If The Tour and LIV Golf were to partner, Spieth said it would be because it would be mutually beneficial.
“At this point, if the PIF is interested in agreeing on terms preferred by member countries and/or whether economic terms are above the SSG, and they feel that is a good idea, then from there I think it will start a discussion,” Spieth said.
“We understand that it may take some time to reach those conditions…as this situation begins to turn around, [people] Realize that we are in a place as a tour where we can be even better than ever before. ”
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