The PGA Tour, along with Strategic Sports Group (SSG), announced this Wednesday the launch of PGA TOUR Enterprises, a new for-profit commercial company under the control of the PGA TOUR. As had been rumoured in recent hours, the agreement with American investors was officially confirmed today. A new era begins and, for now, without the Saudis on board.
In a first step, about 200 members of the American circuit will have the opportunity to become shareholders in this new company. In addition, PGA TOUR Enterprises is considering the participation of future PGA Tour players, which would allow them to benefit from the company’s commercial growth.
In this way, the players will collectively have access to more than 1.5 billion dollars in shares of PGA TOUR Enterprises. These shares – which are acquired over time – will depend on the achievements made during their career, their most recent successes, as well as their involvement and future services in the circuit. Dividends are only available to PGA TOUR member players.
The door to the Saudi Public Investment Fund remains open and negotiations are going well
The transaction announced today will allow a new investment from the Public Investment Fund (FIP) in the future, subject to all necessary regulatory approvals.
“Today is a significant moment for the PGA TOUR and golf fans around the world,” said Jay Monahan, Commissioner of the PGA TOUR and CEO of PGA TOUR Enterprises. “By making PGA TOUR members owners of their league, we reinforce the collective involvement of our players in the success of the PGA TOUR. Fans win when we all work to deliver the best sports entertainment and return the focus to the incredible – and unmatched – competitive atmosphere created by our players, tournaments and sponsors. Partnering with SSG – a group with extensive experience and investment in sports, media and entertainment – will enhance our organisation’s ability to make the sport more rewarding for players, tournaments, fans and sponsors.”
The players unanimously supported this historic partnership between PGA TOUR Enterprises and SSG, said player representatives Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods in a joint statement. “It was incredibly important to us to create opportunities for today’s and future players to invest more in their organisation, both financially and strategically. This not only further strengthens the TOUR from a business perspective, but also encourages players to fully invest in continuing to deliver – and further improve – the best to fans. We are looking forward to this next chapter and an even brighter future.”
As part of PGA TOUR Enterprises, SSG, a consortium of US sports team owners led by Fenway Sports Group, closed a significant financial and strategic investment of 3 billion dollars today. SSG will initially invest 1.5 billion dollars in PGA TOUR Enterprises and will strategically focus on maximising revenue generation for the benefit of players and finding opportunities to improve the game of golf worldwide.
“We greatly appreciate the opportunity to join the PGA TOUR players in this important evolution,” said John Henry, principal owner of Fenway Sports Group and manager of the Strategic Sports Group. “Our enthusiasm for this new venture stems from a deep respect for this extraordinary game and a firm belief in the growth potential of the PGA TOUR. We are proud to partner with this historic institution and are eager to work with the PGA TOUR and its many members to grow and strengthen the game of golf globally.”
SSG includes partners with over 200 combined years of sports team management across several of the world’s major sports leagues, including the NFL, NBA, MLB, NHL and EPL. Fenway Sports Group has led SSG’s investment with the support of Cohen Private Ventures management, including Steven A. Cohen and Andrew B. Cohen, and Arthur M. Blank, owner and chairman of AMB Sports and Entertainment. FSG will also act as a business advisor to this new company.
In addition, the PGA TOUR confirmed today the progress in its ongoing negotiations with PIF on a possible future investment and both parties are working to reach a definitive agreement. SSG has given its consent to an investment by PIF, subject to any necessary regulatory review and approval.
Furthermore, the PGA TOUR’s Strategic Alliance with the DP World Tour remains a focus. As close partners, the DP World Tour was included in the original framework discussions and the agreement announced last year, and the TOUR is in active discussions about the best way to work together for the continued benefit of all.
PGA Tour Enterprise includes:
● Fenway Sports Group (Boston Red Sox, Liverpool F.C., Pittsburgh Penguins, RFK Racing, Boston Common Golf), along with several FSG partners*.
John W. Henry, director of Fenway Sports Group
Steven A. Cohen, owner, chairman and CEO of the New York Mets; chairman and CEO of Point72; owner of TGL New York.
● Arthur M. Blank, co-founder of Home Depot; owner and chairman of AMB Sports and Entertainment (Atlanta Falcons, Atlanta United, Mercedes-Benz Stadium, Atlanta Drive GC, PGA TOUR Superstore).
Tom Werner, chairman of Fenway Sports Group
Mike Gordon, president of Fenway Sports Group
● Sam Kennedy, CEO and president of the Red Sox of Boston; partner of Fenway Sports Group
● Andrew B. Cohen, investment director and co-founder of Cohen Private Ventures; vice president of the New York Mets
● Mark Attanasio, director of Milwaukee Brewers and Norwich City; founder and managing partner of Crescent Capital Group.
● Wyc Grousbeck, co-founder of Causeway Media Partners; principal owner of the Boston Celtics.
● Avenue Sports Fund, led by the CEO of Avenue Capital Group, Marc Lasry, owner of TGL San Francisco; former director of Milwaukee Bucks.
● Linda Henry, co-owner and CEO of Boston Globe Media; investor, WNBA and League One Volleyball; partner of Fenway Sports Group.
● Alec Scheiner, co-founder and partner of Otro Capital.
*Additional investors of Fenway Sports Group: Main Street Advisors, including LeBron James, Maverick Carter and Paul Wachter; Herb Wagner; Henry McCance; William Alfond; Michael Egan; Tom DiBenedetto; Michael Pucker; Richard Warke; Mitchell Jacobson; Frank Resnek; Laura Trust; and Teddy Werner.
Allen & Company LLC and Raine Group are the financial advisors of the PGA TOUR; Wachtell, Lipton, Rosen & Katz is the legal advisor of the PGA TOUR; and McDermott Will & Emery is the tax advisor of the PGA TOUR. Hogan Lovells and Shearman & Sterling act as legal advisors of the Strategic Sports Group.
