The PGA Tour announced on Wednesday that along with the Strategic Sports Group, a group of U.S. sports team owners, have come to an agreement in which SSG will invest up to $3 billion into the newly formed for-profit entity, PGA Tour Enterprises.
Approximately 200 PGA Tour players will be given ownership shares in PGA Tour Enterprises based on their career achievements, accolades, and future participation as a member of the Tour. Players who do not meet the qualifications for PGA Tour membership will not be eligible for ownership shares.
Initially, SSG will invest $1.5 billion in PGA Tour Enterprises, with the second half of the payment to be made at a later date. This transaction also allows for the Saudi Arabian Public Investment Fund to potentially join forces with SSG in the future, pending approval of regulatory requirements.
The PGA Tour has further confirmed that negotiations with the Saudi PIF for a potential investment and merger agreement are ongoing. The Tour’s partnership with the DP World Tour remains a top priority in these discussions.
PGA Tour Commissioner Jay Monahan will serve as the CEO of PGA Tour Enterprises, which will have a board of 13 members consisting of seven PGA Tour players (including six current player directors), four SSG members (John Henry, Andy Cohen, Sam Kennedy, and Arthur Blank), the PGA Tour commissioner (Monahan), and one additional director from the PGA Tour policy board, according to Golf’s Sean Zak.
On June 6, 2023, the dispute between the parties (sort of) came to an end. Through the efforts of Ed Herlihy and Jimmy Dunne from the PGA Tour, an agreement was reached between the Tour and the PIF for a ceasefire and framework agreement, in collaboration with the DP World Tour. Essentially, both sides have agreed to halt any legal action as they work towards finding a solution for the PIF to invest in the new PGA Tour for-profit entity.
The signing of Jon Rahm by LIV Golf in early December and the PGA Tour’s public discussions with investment groups such as SSG may have raised some concerns among stakeholders. However, these actions were simply part of the negotiation process. Despite missing the initial deadline of December 31, it was always understood that the ultimate goal was to come together under one organization in the future.
Read Official PGA TOUR Press Release
