United States
United Kingdom
Summary:
- PGA Tour signs new partnership deal with Strategic Sports Group which will bring in $3 billion
- The money will be used in the new not for profit organization PGA Tour Enterprises
- This will be used to give PGA Tour players a chance to own equity in PGA Tour Enterprises
The PGA Tour has confirmed that it has entered into a partnership with Strategic Sports Group (SSG) which is owned by a number of billionaires who are sports team owners.
The new deal will see SSG fund a total of $3 billion in two instalments of $1.5 billion each into a new non profit organization called PGA Tour Enterprises.
Fenway Sports Group is leading SSG and the terms of the agreement will allow Saudi Arabia’s Public Investment Fund to also make financial contributions which will be subject to regulatory approvals.
PGA Tour Enterprises
PGA Tour Enterprises will be controlled by the PGA Tour and will be used to offer PGA Tour Players the chance to own equity in the newly formed organization. The PGA has confirmed that close to 200 members will now gain access to what it labelled as a first-of-its-kind program and have the opportunity to equity grants in excess of $1.5 billion.
The value of each grant will be fixed based on the player’s recent achievements, career accomplishments, PGA Tour membership status and future participation and services rendered.
In a statement, Jay Monahan, PGA Tour commissioner 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 Policy Board Happy With New Deal
PGA Tour Policy board and Player Directors which includes big names like Tiger Woods, Jordan Spieth and Adam Scott were happy with the deal and gave their unanimous approval.
The Players Directors released a joint statement saying,
We were proud to vote in unanimous support of this historic partnership between PGA Tour Enterprises and SSG
The player directors said in a joint statement.
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. 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.
