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The PGA Tour said its new $3 billion partnership with Strategic Sports Group does not preclude it from reaching a “definitive agreement” with the Saudi Public Investment Fund.
The deal includes an initial contribution of $1.5 billion from a group led by Liverpool’s owner Fenway Sports Group and is designed to give players the opportunity to become equity holders on the tour. Funding was provided to launch a new commercial venture, PGA Tour Enterprises.
The agreement comes as negotiations continue with the Saudi backers of the LIV Golf League, a rival series that has provided millions of dollars to persuade Masters champion Jon Rahm and others to quit the PGA Tour. .
A statement from the PGA Tour confirming the agreement with SSG said: “Today, the PGA Tour confirmed progress in ongoing negotiations with PIF regarding potential future investments, and both parties are working towards a final agreement. “There is,” he said.
“SSG has agreed to the investment by PIF, subject to the necessary regulatory reviews and approvals.”
Rory McIlroy says returning LIV Golf players should not be penalized, admits he has changed his tune
A framework agreement between the PGA Tour and PIF was announced on June 6th, surprising the world of men’s professional golf, but an agreement was not reached and the end of the year deadline to conclude the agreement has been extended.
With Tyrrell Hatton becoming the latest European Ryder Cup player to join LIV earlier this week, it remains to be seen what agreement will be reached between the PGA Tour and PIF to ensure the game’s stars can compete. I don’t know yet if I can do it. Regularly.
The PGA Tour added that its strategic partnership with the DP World Tour “remains a focus” and continues “lively discussions about how best to work together for the continued benefit of everyone.” Ta.
Rich Beam believes the PGA Tour’s partnership with Strategic Sports Group is a “positive step” toward making players feel a part of the tour
How will this investment benefit PGA Tour players?
The measures are the PGA’s most significant yet in an attempt to prevent more players from leaving, having already made changes such as increased prize money and revised schedules to allow top players to compete more often. It is.
The new venture, which PGA describes as the first of its kind, will give its nearly 200 members the opportunity to collectively access more than $1.5 billion in equity.
The tour said the amount players will have access to will be determined “based on career performance, recent results, future participation and services, and PGA Tour membership status, and grants are available only to eligible PGA Tour players.” Ta.
Justin Thomas hopes Tyrrell Hatton doesn’t move to LIV Golf, hopes he ‘did his research’
The statement also added that PGA Tour Enterprises is “considering” future PGA Tour players joining to “benefit from the commercial growth of the business.”
“Today is a significant moment for the PGA Tour and golf fans around the world,” said Jay Monahan, PGA Tour Commissioner and CEO of the new venture. “By making PGA Tour members owners of their own league, we strengthen our players’ collective investment in the success of the PGA Tour.
“Fans win when we all strive to provide the best sports entertainment and bring the focus back to the great and unparalleled competitive atmosphere that our players, tournaments and partners create.
“And partnering with SSG, a group with extensive experience and investment across sports, media and entertainment, strengthens the organization’s ability to make sport even more valuable to players, tournaments, fans and partners. It will be.”
The deal was supported by PGA Tour player directors, including Tiger Woods, Jordan Spieth and Patrick Cantlay.
McIlroy wants golf to have a Champions League-style tour where the best players can compete at the highest level.
“We are proud to have unanimously voted in favor of this historic partnership between PGA Tour Enterprises and SSG,” the organization said. “It was very important to us to create opportunities for current and future players to invest more in the organization both financially and strategically.
“This not only further strengthens the Tour from a business perspective, but also encourages our players to continue to provide the best golf for our fans and to focus our efforts on making it even stronger. I’m looking forward to this chapter and a new round of golf for an even brighter future. ”
The investment group, led by Fenway Sports Group president John Henry, also includes Arthur Blank, owner of the NFL’s Atlanta Falcons, and Stephen Cohen, owner of the New York Mets baseball team. It is.
“We very much appreciate the opportunity to join the PGA Tour players in this important next step in the evolution of the PGA Tour,” Henry said.
“Our enthusiasm for this new venture stems from a deep respect for this great game and a firm belief in the PGA Tour’s expanding growth potential. We are proud to partner with this historic organization. , we look forward to working with the PGA Tour.” Many of our members contribute to the growth and strengthening of golf worldwide. ”
“It’s a big boost for the PGA Tour, but what’s next?”
Sky Sports News reporter Jamie Weir assesses the impact of the PGA Tour’s new deal with Strategic Sports Group:
This is a huge boost for the PGA Tour itself, which has had to spend the past 18 months dipping into slush funds, turning to existing sponsors and seeking more money to increase prize money. Try competing against the large amounts of cash that LIV can offer.
It’s also a big boost for players who remained loyal to the PGA Tour rather than jumping to LIV, as the new deal gives them the opportunity to take an equity stake in the new organization.
But the huge elephant in the room that remains: What does it mean for the PGA Tour and the Saudi Public Investment Fund’s LIV going forward?
In the PGA Tour’s own words, it did not “knock competitors off the table.” The threat of LIV still remains and there are two ways he could really see his deal with SSG today. First, is this a way to completely disengage from the Saudi Public Investment Fund? Or two, and I think this is the more likely scenario, is step one, which is to finally push through an agreement with the Saudi Public Investment Fund?
I think it’s in everyone’s interest for that to happen. I think all parties now realize that this ongoing division in the golf world is completely inconvenient for everyone and that we need to unify and come together in some way. Negotiations between PIF and the PGA Tour continue with the aim of reaching an agreement.
But remember that we announced this framework agreement on June 6 last year. December 31 last year was the deadline to conclude that agreement. This issue is likely to continue, and questions about what will happen between the PGA Tour and the Saudi Public Investment Fund will only deepen.
Saudis are not going anywhere. Their end goal in all of this was to get their foot in the door and join the game of golf. The PGA Tour recognizes that, too, and this $3 billion injection from Strategic Sports Group will be very welcome. The question is, what’s between the PGA Tour and PIF?
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