PGA Tour has launched PGA Tour Enterprises, a new programme that will allow players to collect equity based on career accomplishments.
Collectively, players will have the opportunity to receive over $1.5bn in immediate and future equity in the new company. These grants will be based on career accomplishments, recent achievements, future participation and services as well as PGA TOUR membership status.
Jay Monahan, Commissioner of the PGA Tour and CEO of PGA Tour Enterprises, commented: “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 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.”
The new commercial venture is in partnership with Strategic Sports Group (SSG), a consortium of American sports team owners led by Fenway Sports Group, which owns Liverpool FC, Boston Red Sox and others.
Monahan added: “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.”
Player Directors of the golf organisation, such as Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods unanimously voted in support of the ‘historic partnership’.
In a joint statement, PGA TOUR Player Directors, stated: “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.”
In addition to the new enterprise, PGA has announced that talks with the Saudi Public Investment Fund (PIF) are ongoing and progress has been made. As part of the new deal, SSG has consented to an investment by PIF in the future, subject to any necessary regulatory review and approvals.
Last year, PGA entered into talks with SSG over potentially fresh investment into the golfing organisation. In the new deal, SSG has closed on the major financial and strategic investment of up to $3bn, investing an initial $1.5bn.
John Henry, principal owner of Fenway Sports Group and manager of the Strategic Sports Group, said: “We greatly appreciate the opportunity to join PGA TOUR players in this important next phase of the PGA TOUR’s evolution.
“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 PGA TOUR and its many members to grow and strengthen the game of golf globally.”