PGA TOUR brand is seen throughout the second spherical of the Farmers Insurance Open at Torrey Pines South on January 29, 2021 in San Diego, California.
Ben Jared | Pga Tour | Getty Images
A U.S. consortium has agreed to make investments up to $3 billion into the PGA Tour, the skilled golf group introduced on Wednesday.
Under the phrases of the deal, the investor, Strategic Sports 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 in the tour.
The settlement comes as the group tries to plot out its future in the face of competitors from the upstart LIV Golf and a proposed merger with the Saudi-funded league.
“Today marks an necessary second for the PGA Tour and followers of golf throughout the world,” PGA Tour Commissioner Jay Monahan mentioned.
The deal acquired unanimous help from the PGA Tour participant administrators.
As a part of the new settlement with Strategic Sports Group, the Tour mentioned practically 200 gamers can have the alternative to obtain equity participation in the Tour the league mentioned.
“By making PGA Tour members homeowners of their league, we strengthen the collectives funding of our gamers in the success of the PGA Tour,” Monahan mentioned.
Strategic Sports Group is led by Fenway Sports Group’s John Henry. It contains quite a lot of investors, personal fairness names and sports activities homeowners, together with Atlanta Falcons proprietor Arthur Blank, New York Mets Owner 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 Investment Fund-backed LIV Golf has divided gamers, and a merger may dramatically change the sport.
The PGA Tour-LIV deal was first announced in June, when Commissioner Jay Monahan and Saudi Public Investment Fund Governor Yasir Al-Rumayyan introduced the information on CNBC. It got here as a shock to many, as the two competing leagues have been engaged in a bitter authorized feud at the time.
Critics claimed that the deal was a method for Saudi Arabia to acquire affect in the U.S. by means of sports activities investments. Saudi Crown Prince Muhammad bin Salman controls the PIF.
LIV Golf, launched in 2022, fashioned as a rival league to the Tour. By providing profitable prize cash and signing bonuses, the Saudi-owned tour was in a position to 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 primarily based on the progress that they had made to date. A proper determination on the mixture will happen forward of the Masters Tournament in April.
The deal is topic to Justice Department and regulatory approval.