The PGA Tour is set to receive a massive influx of cash from a consortium of American sports owners.
Reports from Bloomberg and The Wall Street Journal suggest that the PGA Tour is on the verge of securing a groundbreaking $3 billion investment from the Strategic Sports Group (SSG).
This investment holds immense significance, not just in terms of finances, but also because it excludes the Saudi Public Investment Fund (PIF), which is the beneficiary of LIV Golf. In June, the PGA Tour, DP World Tour, and the PIF entered into a framework agreement, aiming to collaborate towards a formal deal that would bring the world of golf together.
The status of an agreement among golf’s main players is still uncertain.
According to Bloomberg, ongoing discussions between the SSG and the PGA Tour will determine the involvement of the Saudi Arabian sovereign wealth fund in the coming days. However, the report highlights that the investment plans may be subject to change based on the outcome of these discussions.
However, the PGA Tour has witnessed LIV Golf attract its top talent, such as Jon Rahm and, most recently, Tyrell Hatton, who is ranked 16th in the world. Phil Mickelson, Brooks Koepka, Bryson DeChambeau, and other well-known players have made the move to the Saudi-backed circuit, enticed by lucrative paydays offered by the breakaway league. LIV Golf events boast $20 million purses, providing players with additional earning potential through team competitions.
Since its establishment in 2022, LIV Golf has received an investment of over $2 billion from the PIF, which boasts assets exceeding $700 billion.
In response to these developments, the PGA Tour took measures to enhance its prize money and introduced the Player Impact Program (PIP), a highly profitable initiative that recognizes and rewards the most popular players. However, implementing these changes necessitated the tour to extract additional funds from its corporate sponsors. Consequently, the tour experienced the departure of certain partners, such as Honda and Wells Fargo, who had been longstanding supporters, due to the escalating costs involved.
However, the tour is no match for a foreign sovereign wealth fund, not to mention a nation that plays a significant role in fueling the global economy through its oil reserves.
Consequently, the PGA Tour engaged in talks with SSG last autumn, recognizing the necessity for additional financial resources to sustain its operations. SSG comprises prominent figures such as John Henry, the owner of the Boston Red Sox and Liverpool F.C., Steve Cohen, the owner of the New York Mets, Arthur Blank, the owner of the Atlanta Falcons, and Marc Lasry, the CEO of the Avenue Capital Group. From 2014 to 2023, Lasry also held ownership of the Milwaukee Bucks. SSG also includes several other billionaires.
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