Spieth spoke with reporters ahead of this weekend’s Pebble Beach Pro-Am.
Jordan Spieth believes that the PGA Tour no longer needs to make a deal with LIV Golf and Saudi Arabia’s Public Investment Fund, although it’s uncertain how close they are to finalizing it.
Spieth shared his thoughts after the Tour revealed a $3 billion investment agreement with Strategic Sports Group on Wednesday.
“I don’t think that it’s needed,” Spieth said Wednesday from the AT&T Pebble Beach Pro-Am. “I think the positive thing would be a unification [for the sport] … But the idea is that we have a strategic partner that allows the PGA Tour to go forward the way it’s operating right now without anything else with the option of other investors.”
On Wednesday, the Tour made an exciting announcement about SSG’s investment of up to $3 billion into the Tour. This partnership will pave the way for the creation of PGA Tour Enterprises, a commercial venture controlled by the Tour, in which players can have a stake. As a result of this investment, players will be entitled to over $1.5 billion in equity shares.
It’s important to note that the PIF, which supports LIV Golf, is not part of this particular deal. However, there is potential for a future co-investment from the Public Investment Fund, pending regulatory approval. While the Tour and LIV Golf have yet to finalize their partnership, they are working towards completing it before the end of 2023. Excitingly, LIV Golf is kicking off its season this week in Mexico.
“I think the coolest thing about it is the players are now owners,” Spieth said. “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. So I think that part is maybe the coolest part of the funding.”
Currently, the Tour will proceed as planned, but with additional funding to support purses and player payments. This financial support eliminates the need for reliance on Saudi Arabian funding. Spieth, who recently joined the Tour’s player policy board, is participating in this week’s event at Pebble Beach, which is the second designated event of the season.
There is a possibility that the Tour and LIV Golf will eventually reach an agreement. However, thanks to the deal with SSG, the Tour is now in a much stronger financial position. According to Spieth, if the Tour and LIV Golf do join forces, it will be because both parties benefit from the collaboration.
“At this point if the PIF were interested in coming in on terms that our members like and/or the economic terms are at or not beyond SSGs and they feel it would be a good idea, I think that’s where the discussions will start,” Spieth said.
“I understand it could take some time to even come to those kind of terms … I hope that this starts to turn the corner and [people] recognize that we’re in a place where we could be better than we’ve ever been as a tour.”
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