The PGA Tour secured an investment of up to $3 billion for its new commercial entity on Wednesday. Strategic Sports Group, led by Fenway Sports Group (the Boston Red Sox’ and Liverpool’s parent company) and other prominent team owners (including from the Boston Celtics, New York Mets, Milwaukee Brewers, and Atlanta Falcons), is making the investment. The deal reportedly values the new PGA Tour Enterprises at around $12 billion.
The investment has been nearing an agreement for over a month, with many of these details already circulating. PGA Tour Enterprises will oversee commercial operations for the PGA Tour and DP World Tour—as well as, potentially, LIV Golf, if and when a deal is reached to pull the Saudi-backed outfit into the fold. The initial investment is worth $1.5 billion, but can go up to $3 billion.
Through the deal, almost 200 golfers will become equity holders in the new entity, together accessing more than $1.5 billion in equity. Those grants will be based around successes on the course and are only available for PGA Tour players.
Another billion-dollar investment, one from Saudi Arabia’s Public Investment Fund, could still be coming, even after that deal missed a Dec. 31 deadline. The PGA Tour clarified that today’s deal allows for future investment from the PIF. A source with knowledge of those negotiations told Front Office Sports that the Masters in April is the current target to get that deal done.
Rahm’s team reveal
This week’s other big golf news: the formation of Masters Champion and No. 3 globally-ranked Jon Rahm’s LIV Golf team. English golfer Tyrrell Hatton, No. 16 in the world, joins Rahm; Kieran Vincent, of Zimbabwe; and Tennessee sophomore Caleb Surratt.
After telling reporters two weeks ago he was presently staying with the PGA Tour, Hatton accepted a deal worth around $60 million, according to The Telegraph of London.