The PGA Tour is nearing a $3 billion investment from United States sports team owners amid ongoing negotiations with the Saudi Arabian Public Investment fund, which funds the PGA’s biggest rival in LIV Golf, according to ESPN’s Mark Schlabach and Don Van Natta Jr.
Strategic Sports Group, which includes Tom Werner and John Henry (Boston Red Sox, Pittsburgh Penguins), Arthur Blank (Atlanta Falcons) and Wyc Grousbeck (Boston Celtics), “would infuse more than $3 billion into a new for-profit entity, PGA Tour Enterprises,” according to Schlabach and Van Natta.
Mark Attanasio (Milwaukee Brewers), Cohen Private Ventures (New York Mets), Tom Ricketts (Chicago Cubs) and Marc Lasry (Milwaukee Bucks, former co-owner) are also among the investors included in Strategic Sports Group.
The PGA Tour has been in negotiations with multiple entities, including the Saudi PIF, to infuse money into a newly-formed PGA Tour Enterprises, which would combine the commercial assets of the PIF, PGA Tour, and DP World Tour.
The framework of an agreement between the three major golf brands was signed on June 6 and expires on Dec. 31, though Schlabach and Van Natta reported Friday that “it would likely be extended if progress is being made.”
Under the terms of the agreement, the PGA Tour would remain in control, while the PIF and Strategic Sports Group would be minority owners.
The PIF was initially “hesitant to be part of a deal with the PGA Tour that includes other U.S.-based investors,” according to Schlabach and Van Natta, but “becoming partners with high-profile franchise owners like Henry, Blank and others was appealing.”
A deal with Strategic Sports Group could be announced before the start of 2024. If a deal is also reached with the PIF, more than $7 billion could be infused into PGA Tour Enterprises.
The PGA Tour is more eager to complete a deal with multiple entities following Jon Rahm’s jump to LIV Golf earlier this month. Rahm, ranked No. 3 in the world, agreed to a reported multiyear contract worth more than $300 million with LIV Golf.
