The PGA Tour signs a $3 billion deal with a Fenway-led investment group.Player takes ownership of shares

The launch of PGA Tour Enterprises, with SSG as a minority partner, comes eight months after the PGA Tour entered into a commercial venture framework agreement with LIV Golf’s Saudi backers, which ultimately led to a private equity investment.・The group decided to participate.

Saudi Arabia’s Public Investment Fund is not yet included in the deal, but the tour said negotiations are underway with PIF to also make it a minority investor.

“The best thing about this game is that the players are now the owners,” said Jordan Spieth, one of the six players on the PGA Tour’s board of directors. “So not only do they make money off the tour, but now they own the stock, so they want to drive the tour themselves and make the product better themselves. Not that they didn’t have it before. , you can directly benefit from owning the work.”

How much remained unknown? PGA Tour Commissioner Jay Monahan held a conference call Wednesday morning with players from all major tours, including the PGA Tour Champions and the Korn Ferry Tour, during which he announced that the tour was appointed to the board last summer at the players’ request. Tiger Woods, who was nominated, was also included.

“As the tour grows, so do we,” Woods told the players, according to Golf.com, which obtained access to the conference call. “So the more you invest in the Tour, the more you benefit from it, and this has never happened before in the history of the sport. That’s why we’re the first. We’re so excited to be a part of it. ”

It is also unclear where this will remain in PIF.

The tour said its agreement with SSG allows for co-investments from PIF, subject to regulatory approval. Earlier this week, a Senate subcommittee sent a letter to PIF President Yasir Al-Rumayyan saying it was investigating the framework agreement with the PGA Tour announced on June 6.

“At this point, if the PIF is interested in agreeing terms that its members prefer, and the economic terms are equal to or better than those of the SSG, if they feel it is a good idea. , I think that’s where the discussion begins,” Spieth said. “We understand that it may take time to reach those conditions, but beyond that the Department of Justice and regulatory review will remain intact.”

LIV Golf begins its third season in Mexico this week and will likely continue throughout next year depending on the timing of PIF’s investment in the PGA Tour. How golf’s fractured state will be repaired remains unclear, as does exactly how equity ownership will be distributed.

The PGA Tour is planning several player meetings over the next month to finalize details.

Monaghan, who will become CEO of PGA Tour Enterprises, said in the official announcement that “By making PGA Tour members owners of the league, we will strengthen the players’ collective investment in the success of the PGA Tour.” Ta.

He said the partnership with SSG, a group of American owners and executives of professional sports franchises, “strengthens the organization’s ability to make sports more valuable to players, tournaments, fans and partners.” “

The PGA Tour Enterprises Board of Directors is comprised of seven players, including the PGA Tour Commissioner, four members of the SSG, and one independent director who is also a Tour director.

The unique equity in golf program will give approximately 200 players access to $930,000 in initial grants. Starting next year, PGA Tour Enterprises plans to use his $600,000 in regular grants to future players.

Specific details of the equity ownership program have not been announced, but initial grants will be based on career performance, recent accomplishments and PGA Tour status. Grants vest over time.

SSG is led by Fenway Sports Group and includes owners Mark Attanasio (Milwaukee Brewers), Arthur Blank (Atlanta Falcons), Stephen Cohen (New York Mets), and Wick Grousbeck (Boston).・Celtics), Tom Warner and John Henry (Boston Red Sox). and Mark Lasry (Milwaukee Bucks). The group also includes Alec Shiner, former president of the Cleveland Browns and co-founder of Otro Capital.

“Our enthusiasm for this new venture stems from our deep respect for this great game and our firm belief in the PGA Tour’s expanding growth potential,” said Henry, principal owner of Fenway Sports and manager of SSG. said.

SSG will invest an initial $1.5 billion in PGA Tour Enterprises, which will focus on maximizing revenue for the benefit of players and identifying opportunities to strengthen golf around the world. An additional $1.5 billion will be earmarked for PGA Tour operations.

The agreement was unanimously approved by the PGA Tour Board of Directors.

“It was very important to us to create an opportunity for our current and future players to become more invested in our organization, both financially and strategically,” the player directors said in a joint statement. . “Not only does this further strengthen the Tour from a business perspective, but it also encourages our players to continue to provide the best golf to our fans and remain committed to making it even stronger.

“We look forward to this next chapter and an even brighter future.”

The tour said negotiations are progressing with the Saudi National Wealth Fund regarding future investments and final agreements. Under the original framework agreement, PIF Governor Al Rumayan was to become chairman of PGA Tour Enterprises.

Currently, this commercial arm is being launched without any agreement with Saudi Arabia.

The European Tour has a strategic partnership with the PGA Tour as part of the June 6 framework agreement. The tours said only that they were discussing how they could work together for mutual benefit.

Key to the original agreement with Saudi Arabia was the dismissal of the LIV Golf lawsuit. Since Rival League launched in June 2022, LIV has attracted several high-profile players and major champions, including Dustin Johnson, Brooks Koepka, Phil Mickelson and Bryson DeChambeau.

As tour negotiations with PIF near the original Dec. 31 deadline, LIV has signed Masters champion Jon Rahm to a contract reportedly worth nearly $500 million. He also signed Tyrrell Hatton, currently ranked 16th in the world.

Rory McIlroy, who relinquished his position as tour executive director in November, said Tuesday that he does not believe any penalty should be meted out to LIV players who are eligible to return to the tour.

AP Golf: https://apnews.com/hub/golf