Memo: PGA Tour to Offer Players Ownership in New Company

It sounds like once the new PGA Tour Enterprises company is created – with or without a partnership from Saudi Arabia’s Public Investment Fund – it will offer a greater piece of the pie to players.

In a memo sent to players following a meeting of the PGA Tour Policy Board, which included Tiger Woods, on Monday, PGA Tour commissioner Jay Monahan said that PGA Tour members would be offered ownership in the new venture.

Update from PGA commissioner Jay Monahan following yesterdays board meeting…

– The tour is moving toward second round bids with potential minority investors.
– Focus is still on PIF/DP World Tour
– PGA Tour is creating an equity program for the players as an added incentive pic.twitter.com/28eDdSoxGu

— Lauren Hirsch (@LaurenSHirsch) November 14, 2023

“Tour management has designed a program that would align the interests of our members with the commercial business of the Tour via direct equity ownership in PGA Tour Enterprises,” Monahan wrote.

The commissioner went on to say that they’re expecting this new entity to become a reality even if the framework agreement with the PIF ends up falling apart. The PGA Tour is reportedly in talks with other investors to fund their new reality.

“At the point we secure outside investment, this would be a unique offering in professional sports, as no other league grants its players/members direct equity ownership in the league’s business.

“We recognize … that the PGA Tour will be stronger with our players more closely aligned with the commercial success of the business.”

The PGA Tour is reportedly in talks with several entities, including Fenway Sports Group, about funding. 

“We continue to remain focused on our negotiations towards a Definitive Agreement with PIF and the DP World Tour as our priority,” Jay Monahan tells players in a memo after PGA Tour Policy Board meeting.#PGATour #PIF #golf #DPWorldTour #merger pic.twitter.com/GHizNOPfWt

— Today’s Golfer (@TheTodaysGolfer) November 14, 2023

The self-imposed deadline for the PGA Tour, DP World Tour, and PIF to agree to terms of the framework agreement is Dec. 31, but it has been reported that the deadline is unlikely to be met but could also be extended.

Cover Image via Golf Magazine