PGA Tour CONFIRMS $3BILLION investment with Fenway Sports Group-led US consortium with players set to access $1.5bn in equity… but joint deal with Saudi PIF is still on the table

The PGA Tour has signed an investment deal worth billions of dollars with a consortium made up of owners of major US sports teams including John Henry and Arthur Blank, it was confirmed on Wednesday.

Golf’s old order concluded with an investment of up to $3 billion from Strategic Sports Group, a consortium led by Fenway Sports Group – the owners of Premier League club Liverpool and MLB franchise Boston Red Sox.

The partnership also marked the launch of PGA Tour Enterprises, a company that will provide nearly 200 Tour members with access to more than $1.5 billion in equity.

The deal comes eight months after the PGA Tour signed a framework agreement with LIV Golf’s Saudi backers for a commercial venture.

Negotiations between the PGA Tour and the Public Investment Fund are ongoing after the initial December 31 deadline was missed and LIV Golf’s backers were not included as part of the transaction with SSG.

Strategic Sports Group is led by Liverpool owner John W Henry, Fenway Sports Group (left)

Saudi Arabia’s PIF (Governor Yasir Al-Rumayyan in photo) is still negotiating with PGA Tour

But Wednesday’s memo confirmed that a future co-investment from the Saudi Arabian fund was still on the table, subject to regulatory approval.

“By giving PGA Tour members ownership of their competition, we are strengthening our players’ collective investment in the success of the PGA Tour,” Monahan, who will become CEO of PGA Tour Enterprises, said in the formal announcement.

He said a partnership with SSG – a group made up of American owners and executives of professional sports franchises – “will enhance our organization’s ability to make sports more rewarding for players, tournaments, fans and partners.”

SSG is managed by Fenway Sports Group and consists of owners Marc Attanasio (Milwaukee Brewers); Arthur Blank (Atlanta Falcons); Steven Cohen (New York Mets); Wyc Grousbeck (Boston Celtics); Tom Werner and John Henry (Boston Red Sox); Marc Lasry (Milwaukee Bucks). Others in the group include Alec Scheiner, former Cleveland Browns president and partner at RedBird Capital.

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

SSG will invest an initial $1.5 billion in PGA Tour Enterprises and will focus on maximizing revenue for the benefit of players and finding opportunities to improve golf around the world. Another $1.5 billion would go to PGA Tour operations.

The unique equity program in golf would give approximately 200 players access to initial grants, available only to qualified PGA Tour members.

Starting next year, PGA Tour Enterprises would provide recurring subsidies to prospective players.

Atlanta Falcons owner Arthur Blank (L) and Mets owner Steve Cohen are also involved

Although specific details of the equity program were not announced, the initial grants would be based on career performance, recent performance and PGA Tour status. The subsidies would become unconditional over time.

The deal was unanimously approved by the PGA Tour board, which consists of six players: Tiger Woods, Patrick Cantlay, Adam Scott, Jordan Spieth, Webb Simpson and Peter Malnati.

“It was incredibly important for us to create opportunities for the players of today and in the future to invest more in their organizations, both financially and strategically,” the player directors said in a joint statement.

‘This not only further strengthens the tour from a business perspective, but also encourages the players to fully invest in continuing to deliver – and further improve – the best in golf to our fans.

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

The Tour also emphasized that the strategic alliance with the European DP World Tour remains a priority.

The deal was unanimously approved by the PGA Tour board, which also includes Tiger Woods

The DP World Tour was included in the June 6 framework agreement and the PGA Tour said there were active discussions about how they can work together for the “benefit of all.”

The tour said it is making progress in negotiations with the Saudi National Wealth Fund on future investments and a final agreement. Under the original framework agreement, Yasir Al-Rumayyan, the PIF governor, would be chairman of PGA Tour Enterprises. It was not clear what influence the collaboration with SSG has on this.

During the tour, it was said that SSG has agreed to any investment by PIF, subject to necessary review and approval.

A congressional committee led by Sen. Richard Blumenthal, D-Conn., sent a letter to Al-Rumayyan on Monday asking him to cooperate in allowing the committee to subpoena four U.S. consulting firms working for PIF.