At last week’s Hero World Challenge, Tiger Woods expressed frustration with the slow speed of the PGA Tour’s investment decisions.
Things have certainly sped up.
After a series of policy committee meetings over the weekend, the PGA Tour announced to its members on Sunday that it had agreed to “advance negotiations” with an outside investment group called Strategic Sports Group. In a memo to players, the tour described the group as “a consortium of U.S.-based professional sports team investors led by Fenway Sports Group.”
The group, known by some as “SSG,” is owned by the owners of at least nine professional sports franchises, including Atlanta Falcons owner Arthur Blank and Boston Red Sox owner John Henry.
Has an impressive collection of sports business highlights. York Mets owner Steve Cohen and Boston Celtics owner Wyk Grousbeck. In addition to a potential agreement with SSG, the Tour is expected to continue negotiations with the Saudi Public Investment Fund’s LIV investors.
The move follows the transfer of world No. 3 Jon Rahm to LIV, a shocking development that was officially announced on Thursday. This signing marks the first time a PGA Tour player has committed to his LIV since the PGA Tour and his PIF entered into a framework agreement on June 6th. The timing of the last few days is no coincidence. The PIF is seeking to gain more influence in determining the tool’s next move, but a framework agreement between the two sides has a December deadline. 31.
This decision comes ahead of a highly anticipated meeting: PGA Tour Commissioner Jay Monahan and PIF Governor (and LIV Chairman) Yasir Al-Rumayyan are expected to meet in person this week, said people familiar with the situation.
By the end of this week, three investment partners had come forward to partner with his PGA Tour: SSG, Acorn Growth Companies, and his F1 owner Liberty Media. The Board has now decided to continue its relationship with SSG, paving the way for further discussions with LIV’s investors.
A message to tour members said: “We also plan to proceed with negotiations with PIF in the coming weeks.”
For the PGA Tour, the moment marks a key development in the shape of its future. The Tour’s financial model has been strained considerably by the financial pressures placed by LIV and the PIF. In partnering with the SSG and PIF, the Tour can tap into untold billions in funding in exchange for pieces of equity in the Tour’s business interests. The partnerships could have the benefit of unifying the sport while providing a cash infusion to the Tour to further enrich its players, though it remains to be seen how such an agreement would affect the Tour, which has been player-owned and operated for most of its existence.
The Tour’s Policy Board stated that they’d decided to partner with the SSG “unanimously.” The board consists of players Patrick Cantlay, Charley Hoffman, Peter Malnati, Webb Simpson, Jordan Spieth and Tiger Woods as well as independent directors Ed Herlihy, Jimmy Dunne, Mark Flaherty, Joe Gorder and Mary Meeker.
Leave a Reply