PGA Tour 'Close' To Securing $3 Billion Investment Deal That Does Not Initially Include Saudi Public Investment Fund
Strategic Sports Group are set to make a significant investment in the PGA Tour that could push the value of PGA Tour Enterprises up to around $12 billion
The PGA Tour is close to completing a historic investment deal worth $3 billion with Strategic Sports Group, according to a report by Bloomberg.
The consortium - led by Fenway Sports Group and also including New York Mets owner Steve Cohen’s Cohen Private Ventures, Atlanta Falcons owner Arthur Blank, and former Milwaukee Bucks co-owner Marc Lasry - is prepared to inject the money into PGA Tour Enterprises right away and will inflate the for-profit entity's valuation up to around $12 billion, per Bloomberg.
According to anonymous sources close to the deal who spoke to Bloomberg, the initial agreement may not include LIV Golf. However, the Saudi Arabian Public Investment Fund - which backs LIV - could well pump additional capital in at a later date as talks continue about how to include the PGA Tour's direct competitor.
This potential deal arrives just weeks after the PGA Tour, DP World Tour, and PIF opted to extend the deadline for negotiations to be completed surrounding a framework agreement - put into place during the summer of 2023 - past the initial date of December 31.
It was hoped that a new deal could be completed well before April's Masters and ideally prior to the PGA Tour's flagship event in March - The Players Championship.
Shortly before Christmas, the PGA Tour's Policy Board confirmed it has entered into advanced negotiations with the Fenway-led consortium while announcing that it would also be continuing its discussions with the PIF "in the weeks to come."
A PGA Tour statement continued: "Further, the DP World Tour will continue to be an important part of the process as we build toward PGA Tour Enterprises. Please know that while we can't get into more details at this time, we are very confident in an eventual, positive outcome for all players and the PGA Tour as a whole."
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According to a report from CBS Sports, PIF chairman Yasir Al-Rumayyan was deeply unhappy about LIV being usurped at the centre of negotiations by American private equity and responded by signing World No.3 Jon Rahm from the PGA Tour in an effort to pull the chips back over to his side of the table.
American government officials have previously expressed their opposition to any deal with PIF, although the dominant influence of the US investment involved may move to allay concerns and allow the deal to pass.
Jonny Leighfield is our Staff News Writer who joined Golf Monthly just in time for the 2023 Solheim Cup and Ryder Cup. He graduated from the University of Brighton with a degree in Sport Journalism in 2017 and spent almost five years as the sole sports reporter at his local newspaper. During his time with Golf Monthly, Jonny has interviewed several stars of the game, including Robert MacIntyre, Ian Poulter, and Lee Westwood. An improving golfer himself, Jonny enjoys learning as much about the game as he can and is hoping to reach his Handicap goal of 18 at some stage. He attended both the 150th and 151st Open Championships and dreams of attending The Masters one day.
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