In a “private” equity deal, the PGA Tour has announced the launch of a new commercial entity -- PGA Tour Enterprises – that will be funded in partnership with Liverpool FC owners Fenway Sports Group and other investors making up to $1.5 billion available to its members as equity holders. The move does not involve Saudi Arabia’s sovereign Public Investment Fund, which signed a framework agreement with the PGA Tour last June and also funds the parallel LIV Golf League.
Immediate beneficiaries of the new deal with the Strategic Sports Group are the top 200 of the PGA Tour’s player members who have stayed with the tour and will now be partners in the venture having stayed away from LIV Golf’s inducements. They include the likes of Tiger Woods and Rory McIlroy with the latter leading opposition to the Greg Norman-fronted LIV Golf for long till he stepped down as a player-director of the tour’s board.
In a statement, Monahan, who will also be chief executive of the new venture, said, “Today marks an important moment for the PGA Tour and fans of golf across the world. By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the 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.
“And partnering with SSG – a group with extensive experience and investment across sports, media and entertainment – will enhance our organisation’s ability to make the sport more rewarding for players, tournaments, fans and partners.”
Added player directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods, in a joint statement, “We were proud to vote in unanimous support of this historic partnership between PGA Tour Enterprises and SSG. It was incredibly important for us to create opportunities for the players of today and in the future to be more invested in their organisation, both financially and strategically.
“This not only further strengthens the tour from a business perspective, but it also encourages the players to be fully invested in continuing to deliver - and further enhance - the best in golf to our fans. We are looking forward to this next chapter and an even brighter future.”
The deal with SSG leaves the door open for future co-investment from PIF subject to necessary regulatory approvals that have been a stumbling block between the PGA Tour and the Saudi Arabian fund given Senate and Congressional scrutiny of the June framework agreement that was to fructify in end-December last year but has been pushed back.
SSG, a consortium of American sports team owners led by Fenway Sports Group, will step in with long-term investment of up to $3 billion starting with the initial $1.5 and provide “strategic focus on maximising revenue generation for the benefit of the players and on finding opportunities to enhance the game of golf across the world”.
"We greatly appreciate the opportunity to join PGA Tour players in this important next phase of its evolution,” said John Henry, Fenway’s principal owner who will also manage SSG. “Our enthusiasm for this new venture stems from a very deep respect for this remarkable game and a firm belief in the expansive growth potential of the PGA Tour. We are proud to partner with this historic institution and are eager to work with the tour and its many members to grow and strengthen the game of golf globally.”
SSG includes individuals with over 200 years of combined sports team stewardship across several major global sports leagues, including the NFL, NBA, MLB, NHL and EPL, the tour statement said. Fenway Sports Group has led the SSG investment with support from the leadership of Cohen Private Ventures, including Steven A. Cohen and Andrew B. Cohen, and Arthur M. Blank, the owner and chairman of AMB Sports and Entertainment. FSG will also serve as commercial advisor to this new enterprise.
Almost as an afterthought, the statement added, “Additionally, the PGA Tour’s Strategic Alliance with the DP World Tour remains a focus. As close partners, the DP World Tour was included in the original framework discussions and agreement announced last year, and the tour is in active discussions on how to best work together for the continued benefit of all.”
The Strategic Sports Group includes the Fenway Sports Group (Boston Red Sox, Liverpool F.C., Pittsburgh Penguins, RFK Racing, Boston Common Golf), John W. Henry, principal, Fenway Sports Group, Steven A. Cohen, owner, chairman and chief executive of the New York Mets, Arthur M. Blank, co-founder of Home Depot and owner/chairman of AMB Sports and Entertainment (Atlanta Falcons, Atlanta United, Mercedes-Benz Stadium, Atlanta Drive GC, PGA TOUR Superstore), FSG chairman Tom Werner, FSG president Mike Gordon, FSG partner and Boston Red Sox CEO and president, and others with similar backgrounds including Andrew B. Cohen of the New York Mets, Mark Attanasio of the Milwaukee Brewers and Norwich City, and Boston Celtics co-owner Wyc Grousbeck.