I have read through this huge new cash infusion for the PGA Tour involving a collaboration with some of America's wealthiest sports owners (Strategic Sports Group or SSG) led by John W Henry principal owner of Fenway Sports Group.
Players are being given the opportunity to be equity holders in PGA Tour Enterprises.
Quotes from players
Jordan Spieth : "The coolest thing about it is the players are now owners," said Jordan Spieth, one of six players on the PGA Tour board. "So not only do they benefit with the tour, they now are equity owners so they want to push it themselves, they want to make the product better themselves. Not that they didn't before, but you directly benefit from owning a piece."
Tiger Woods: "As the tour grows, we grow," Woods told players, according to Golf.com, which obtained access to the call. "So the more we invest into the tour, the more we get the benefits of it, which has never been — it's never happened in sports history. So we're the first. Exciting for me to be able to be part of that."
The agreement leaves room for investment from the Saudi PIF as negotiations with them continue as they begin their 3rd season in Mexico this week, still in relative obscurity.
However the relationship with the DP World Tour " remains a focus. As close partners, the DP World Tour was included in the original framework discussions and agreement announced last year, and the TOUR is in active discussions on how to best work together for the continued benefit of all."
I have picked out the highlights from pgatour.com
PONTE VEDRA BEACH, Fla. – The PGA TOUR – in partnership with Strategic Sports Group (SSG) –announced Wednesday the launch of PGA TOUR Enterprises, a new commercial venture under the PGA TOUR’s control, and in a first-of-its kind program, nearly 200 PGA TOUR members will have the opportunity to become equity holders in this new company. PGA TOUR Enterprises is also considering participation by future PGA TOUR players that would allow them to benefit from the business’s commercial growth. Under this program, players would collectively access over $1.5 billion in equity in PGA TOUR Enterprises. These grants – which vest over time – will be based on career accomplishments, recent achievements, future participation and services and PGA TOUR membership status, and grants are only available to qualified PGA TOUR players.
The transaction announced today allows for a co-investment from the Public Investment Fund (PIF) in the future, subject to all necessary regulatory approvals.
“Today marks an important moment for the PGA TOUR and fans of golf across the world,” said Jay Monahan, Commissioner of the PGA TOUR and CEO of PGA TOUR Enterprises. “By making PGA TOUR members owners of their league, we strengthen the collective investment of our players in the success of the PGA TOUR.
“We were proud to vote in unanimous support of this historic partnership between PGA TOUR Enterprises and SSG,” said PGA TOUR Player Directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods 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. We are looking forward to this next chapter and an even brighter future.”
As part of PGA TOUR Enterprises, SSG, a consortium of American sports team owners led by Fenway Sports Group, today closed on a major financial and strategic investment of up to $3 billion. SSG is investing an initial $1.5 billion into PGA TOUR Enterprises
In addition, today the PGA TOUR confirmed progress in its ongoing negotiations with PIF on a potential future investment and both parties are working towards an ultimate agreement. SSG has consented to an investment by PIF, subject to any necessary regulatory review and approvals.
Additionally, the PGA TOUR’s Strategic Alliance with the DP World Tour remains a focus. As close partners, the DP World Tour was included in the original framework discussions and agreement announced last year, and the TOUR is in active discussions on how to best work together for the continued benefit of all.
pgatour.com
Bryan Angus (edit)
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