Tiger Woods and Jay Monahan will hold voting positions in PGA Tour Enterprises, the new for-profit company created by the American circuit with the investment support of Strategic Sports Group and which continues in talks to incorporate the Saudi Public Investment Fund into the project.
It was the PGA Tour itself that announced this Wednesday the formation of a board of directors composed of 13 members. Enterprises is a division within the American circuit itself that will be responsible for the business and commercial rights of the PGA Tour and the DP World Tour. This will allow the circuit to maximise its revenues, as well as those of the players, while keeping its 501(c)(6) non-profit classification intact, which entails tax exemptions for “commercial leagues”. SSG has committed to contribute up to 3 billion dollars to PGA Tour Enterprises, with an initial investment of 1.5 billion.
The Tour will receive nine positions on the board of directors, while SSG representatives will occupy the other four positions. Six of the nine circuit positions were awarded to player representatives Tiger Woods, Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson and Jordan Spieth. Former PGA Tour player Joe Ogilvie was named “liaison director” and will be part of both the company board and the circuit’s policy board. Monahan, current commissioner of the PGA Tour, and independent director Joe Gorder complete the last circuit positions.
The four SSG positions will be occupied by John W. Henry (Fenway Sports Group), Arthur Blank (Atlanta Falcons), Andrew Cohen (New York Mets) and Sam Kennedy (Boston Red Sox).
Although Monahan had already been announced as CEO of PGA Tour Enterprises, he will now have a vote on the circuit’s board of directors, which consolidates his position in it. Woods was announced as vice president of the board at the request of PGA Tour players, who were seeking new governance methods and transparency after the surprising framework agreement with the Public Investment Fund last summer.
“Today’s announcement is another milestone for our organisation, as I believe we have achieved a suitable composition of the PGA Tour Enterprise board of directors, with the necessary experience and balance to lead our organisation into the future,” Monahan said in a statement. “Our current and former players will bring an essential vision of the priorities and needs of our members. And we welcome to the management team key members of SSG, whose exceptional track record and achievements in world professional sport will bring a wealth of knowledge about the opportunities that lie ahead for the PGA Tour. Their experience will undoubtedly play a key role in the success and growth of our commercial initiatives.”
No role has been stated for the Saudi Public Investment Fund in the new business. The tour announced in January that the agreement with SSG will allow PIF co-investment in the future, but there are antitrust rules that must be overcome, and Congress has announced that it will continue its investigation into PIF and its investments in US companies.
Initially, the tour was seeking supplementary investment to appease government antitrust regulations rather than serve as an alternative to PIF, which is the financial backing of LIV Golf. However, talks between the PIF and the circuit have stalled and the new recruitment of circuit players by the PIF, as well as the agreement with SSG have hurt the feelings of both parties. Monahan is expected to speak next week at the THE PLAYERS Championship.
