The PGA Tour logo is seen during the third round of the Travelers Championship at TPC River Highlands in Cromwell, Connecticut, on June 24, 2017.
Fred Kfoury | Icon Sportswire | Getty Images
An American consortium has agreed to invest up to $3 billion in the PGA Tour, the professional golf organization announced Wednesday.
Under the terms of the deal, the investor, Strategic Sports Group, will become a minority owner in PGA Tour companies, the for-profit entity of the PGA Tour. The group will make an initial investment of $1.5 billion in the tour.
The deal comes as the organization tries to chart its future despite competition from upstart LIV Golf and a proposed merger with the Saudi-funded league. The Tour confirmed progress in ongoing negotiations with PIF on a possible future investment and discussions with the DP World Tour.
“Today is an important moment for the PGA Tour and golf fans around the world,” said PGA Tour Commissioner Jay Monahan.
The deal received unanimous support from the PGA Tour's player directors.
As part of the new agreement with Strategic Sports Group, the Tour said nearly 200 players will have the opportunity to receive equity participation in the Tour, the league said. These would be awarded in the form of grants, awarded over time – and would be based on their career achievements and future participation and service to the Tour.
“By giving PGA Tour members ownership of their competition, we are strengthening our players' collective investment in the success of the PGA Tour,” said Monahan.
Strategic Sports Group is led by John Henry of Fenway Sports Group. It includes a variety of investors, private equity names and sports owners, including Atlanta Falcons owner Arthur Blank, New York Mets owner Steve Cohen, Chicago Cubs chairman Tom Ricketts and Boston Celtics owner Wyc Grousbeck.
“Our enthusiasm for this new venture comes from a deep respect for this remarkable game and a firm belief in the PGA Tour's extensive growth potential,” said John Henry, principal owner of Fenway Sports Group and manager of the Strategic Sports Group.
Monahan and Henry held an exclusive player call Wednesday morning to share the news with the members.
The investment comes at a crucial time for professional golf. The tumultuous rivalry between the PGA Tour and Saudi Public Investment Fund-backed LIV Golf has divided players, and a merger could dramatically change the sport.
The PGA Tour-LIV deal was first announced in June, when Commissioner Jay Monahan and Saudi Investment Fund Governor Yasir Al-Rumayyan announced the news on CNBC. It came as a surprise to many, as the two competing leagues were embroiled in a bitter legal feud at the time.
Critics claimed the deal was a means for Saudi Arabia to gain influence in the US through sports investments. Saudi Crown Prince Muhammad bin Salman controls the PIF.
LIV Golf, launched in 2022, emerged as a rival league to the Tour. By offering lucrative prize money and signing bonuses, the Saudi-owned tour was able to lure away top players such as Phil Mickelson, Dustin Johnson, Brook Koepka and John Rahm.
The PGA Tour-LIV golf deadline was originally set for December 31st. Monahan previously told the players that the organizations were extending the deadline based on the progress they had made thus far. A formal decision on the combination is expected to take place ahead of the Masters tournament in April.
The deal still needs to be approved by the Justice Department and regulators.