Officially Introducing PGA Tour Enterprises: SSG On Board, Saudis Soon?

The long-awaited evolution of men’s professional golf took a major step on Wednesday, as the PGA Tour announced PGA Tour Enterprises along with a new investment partner.

The Tour said in a press release that the new for-profit entity will be funded by a $1.5 billion investment from Strategic Sports Group, a consortium of mostly sports-team owners led by Fenway Sports Group principal owner John Henry. Along with the $1.5 billion initial cash infusion, players will be able to access another $1.5 billion in equity, making the deal $3 billion as previously reported. 

The PGA Tour has finalized an agreement with Strategic Sports Group, injecting about $3 billion of cash into a new for-profit entity.

Investors include:
• Tom Werner & John Henry (Boston Red Sox)
• Mark Attanasio (Milwaukee Brewers)
• Arthur Blank (Atlanta Falcons)
• Wyc… pic.twitter.com/A5v8UcfAL1

— Joe Pompliano (@JoePompliano) January 31, 2024

The release said that present and future PGA Tour members will be able to become equity owners in the new company. The grants will be based on criteria like career accomplishments, recent achievements, and PGA Tour membership status.

PGA Tour commissioner Jay Monahan, who is also CEO of PGA Tour Enterprises, said:

“By making PGA TOUR members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour. Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible – and unmatched – competitive atmosphere created by our players, tournaments, and partners.”

PGA Tour player directors were in unanimous support of the deal.

A joint statement by directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth, and Tiger Woods said, in part:

“It was incredibly important for us to create opportunities for the players of today and in the future to be more invested in their organization, both financially and strategically.”

As of now, the deal does not include Saudi Arabia’s Public Investment Fund. However, SSG consented to an investment by the PIF once a deal is reached and receives regulatory approval. On a conference call with PGA Tour players, Monahan reportedly said that negotiations with the PIF were “active and frequent.” 

The release said that the equity will be available only to qualified PGA Tour players. It’s unclear if that means those who were suspended when moving to LIV Golf are ineligible. 

Prior to the official announcement, Rory McIlroy – a former member of the PGA Tour Policy Board – was losing patience with the sport seemingly being in limbo as this deal (along with the talks with the PIF) was being negotiated.

“I feel like this thing could have been over and done months ago,” McIlroy said. “I think just for all of our sakes that the sooner that we sort of get out of it and we have a path forward, the better.” 

The DP World Tour was mentioned briefly in the release, but no specifics were given for what this means for that tour. A detail that didn’t go unnoticed by their membership. 

We can confirm that a deal between the @PGATOUR and the Strategic Sports group is done. But where is the DP World tour is in the deal? Is it beneficial to us? What is going to do to us? Well, we will see, I hope.

— Pablo Larrazabal (@plarrazabal) January 31, 2024

Overall, while the path forward for a splintered sport isn’t completely paved, there is finally tangible progress in a process that began with the bombshell “framework agreement” announcement on June 6, 2023, among the PGA Tour, PIF, and DP World Tour. Those parties agreed to continue to negotiate past the initial deadline of Dec. 31, 2023.

Cover Image via ESPN