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The future of professional golf is starting to take shape.
On Wednesday morning, PGA Tour Commissioner Jay Monahan announced that Strategic Sports Group, an outside investment group comprised of several high-level U.S.-based sports owners, led by Fenway Sports Group. (SSG) announced to players that it has partnered with the Tour to form the PGA. Tour Enterprise.
SSG plans to invest up to $3 billion of its initial investment of $1.5 billion. Player grants are established over time based on career performance, recent accomplishments, and more. Only eligible PGA Tour players are eligible.
according to tour notes, “Approximately 200 PGA Tour members will have the opportunity to become stockholders in a new commercial entity.” PGA Tour Enterprises is “considering the participation of future PGA Tour players to benefit from the commercial growth of the business,” which means players returning from LIV golf or those who played on the tour from college. , you will be able to access it by reinstating your membership.
The memo also states that PGA Tour Enterprises will allow future co-investments from PIF “subject to all necessary regulatory approvals.”
As expected… none of the calls from players were more detailed than the press release. It was an introductory call. SSG is an investor in his pgatour. Players are stockholders. They will use that money to invest more in pgatour and hopefully keep their fans happy…
— Michael S. Kim (@Mike_kim714) January 31, 2024
Back on June 6, 2023, the Tour announced a framework agreement with the DP World Tour and Saudi Arabia’s Public Investment Fund to establish a for-profit golf entity known as PGA Tour Enterprises. Four months later, the PGA Tour’s policy committee announced that it was proceeding with discussions with SSG and was not closing the door on PIF.
The December 31st deadline to reach a final agreement with PIF has been extended, with Monaghan sending a memo to players saying “active and productive” negotiations with PIF will continue until 2024. PIF Based on your progress so far. Mr Monaghan and Mr Al Rumayyan reportedly met in Saudi Arabia last week to continue negotiations.
Why bring in outside investors when negotiations with PIF are still ongoing? Given the US government’s various doubts, introducing SSG would dilute Saudi investment and make the deal more palatable. Some might argue. Conversely, such a move could be seen as a way for the tour to have its cake and eat it, too, by kicking the Saudis out after ending the lawsuit with a general agreement. The former is more realistic and would be a step towards reintegrating the game, while the latter would be a new pivot from the tour and would only lead to further battles with LIV.
This article originally appeared on GolfWeek
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