Rocked by the money on offer by LIV Golf and the talent drain of some of its leading players, the PGA Tour is offering its golfers the opportunity to become “owners of their league.”
Announcing the launch of PGA Tour Enterprises on Wednesday, the PGA Tour said a “first-of-its kind” program will offer its players the opportunity to become equity holders.
Funded through an investment of up to $3 billion from Strategic Sports Group (SSG), a consortium of American sports teams owners led by Fenway Sports Group (FSG), the almost 200 Tour members would collectively be able to receive over $1.5 billion in equity.
The grants, available only to qualified PGA Tour players, would be based on career accomplishments, recent achievement, future participation and services and PGA Tour membership status, according to a press release from the PGA Tour.
“Today marks an important moment for the PGA Tour and fans of golf across the world,” PGA Tour commissioner and PGA Tour Enterprises CEO Jay Monahan said.
“By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour,” added Monahan.
“Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible – and unmatched – competitive atmosphere created by our players, tournaments and partners.
“Partnering with SSG – a group with extensive experience and investment across sports, media and entertainment – will enhance our organization’s ability to make the sport more rewarding for players, tournaments, fans and partners.”
Co-investment from Saudi Arabia’s Public Investment Fund (PIF) – backers of the breakaway LIV Golf – had been consented by SSG and would be allowed in future, “subject to all necessary regulatory approvals.”
The PGA Tour remains in negotiations with PIF regarding the reconciliation agreement first announced last June. Having failed to reach an arrangement by the initial deadline of December 31, the two sides continue to work towards finalizing an “ultimate agreement,” the statement added.
Englishman Tyrrell Hatton became the latest golfer to announce his switch to LIV Golf on Tuesday, following fellow Ryder Cup star and world No. 3 Jon Rahm after the Spaniard announced his move in December.
‘Best in golf to our fans’
A joint statement released by the six PGA Tour Player Directors, including Tiger Woods, Patrick Cantlay, and Jordan Spieth, said players were “proud” to vote unanimously for the new program.
“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,” it read.
“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.”
Injecting an initial investment of $1.5 billion, the SSG consortium is led by FSG Principal Owner John Henry, whose ownership portfolio include Major League Baseball’s Boston Red Sox, the National Hockey League, and English Premier League club Liverpool.
Other members of SSG include the MLB’s New York Mets owner Steven Cohen, the National Football League’s (NFL’s) Atlanta Falcons owner Arthur Blank, and Wyc Grousbeck, owner of the Boston Celtics in the National Basketball Association (NBA).
Correction: An earlier version of this story incorrectly stated the worth of SSG’s investment and how much Tour members would collectively receive. It is $3 billion and over $1.5 billion, respectively.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
