PGA TOUR brand is seen throughout the second spherical of the Farmers Insurance coverage Open at Torrey Pines South on January 29, 2021 in San Diego, California.
Ben Jared | Pga Tour | Getty Photographs
A U.S. consortium has agreed to take a position as much as $3 billion into the PGA Tour, the skilled golf group introduced on Wednesday.
Below the phrases of the deal, the investor, Strategic Sports activities Group, will develop into a minority proprietor in PGA Tour enterprises, the for-profit entity of the PGA Tour. The group will make an preliminary funding of $1.5 billion within the tour.
The settlement comes because the group tries to plot out its future within the face of competitors from the upstart LIV Golf and a proposed merger with the Saudi-funded league.
“At the moment marks an essential second for the PGA Tour and followers of golf the world over,” PGA Tour Commissioner Jay Monahan stated.
The deal acquired unanimous assist from the PGA Tour participant administrators.
As a part of the brand new settlement with Strategic Sports activities Group, the Tour stated almost 200 gamers may have the chance to obtain fairness participation within the Tour the league stated.
“By making PGA Tour members homeowners of their league, we strengthen the collectives funding of our gamers within the success of the PGA Tour,” Monahan stated.
Strategic Sports activities Group is led by Fenway Sports activities Group’s John Henry. It consists of quite a lot of buyers, personal fairness names and sports activities homeowners, together with Atlanta Falcons proprietor Arthur Clean, New York Mets Proprietor Steve Cohen, Chicago Cubs chairman Tom Ricketts and Boston Celtics proprietor Wyc Grousbeck.
The funding comes at a pivotal time for skilled golf. The tumultuous rivalry between the PGA Tour and Saudi Public Funding Fund-backed LIV Golf has divided gamers, and a merger might dramatically change the game.
The PGA Tour-LIV deal was first introduced in June, when Commissioner Jay Monahan and Saudi Public Funding Fund Governor Yasir Al-Rumayyan introduced the information on CNBC. It got here as a shock to many, as the 2 competing leagues have been engaged in a bitter authorized feud on the time.
Critics claimed that the deal was a way for Saudi Arabia to achieve affect within the U.S. by sports activities investments. Saudi Crown Prince Muhammad bin Salman controls the PIF.
LIV Golf, launched in 2022, shaped as a rival league to the Tour. By providing profitable prize cash and signing bonuses, the Saudi-owned tour was capable of lure away prime gamers like Phil Mickelson, Dustin Johnson, Brook Koepka and John Rahm.
The PGA Tour-LIV golf deadline was initially set for Dec. 31. Monahan informed gamers the organizations have been extending the deadline based mostly on the progress they’d made thus far. A proper choice on the mix will happen forward of the Masters Event in April.
The deal is topic to Justice Division and regulatory approval.
