In a first-of-its-kind initiative, the PGA TOUR and Strategic Sports Group (SSG) announced on Wednesday the creation of PGA TOUR Enterprises, a new business endeavour that will be under the PGA TOUR’s ownership. Approximately 200 PGA TOUR members will have the chance to acquire equity in this new business. Future PGA TOUR players may participate as well, allowing PGA TOUR Enterprises to profit from the business’s commercial expansion. Players would have access to nearly $1.5 billion in stock in PGA TOUR Enterprises as a group under this programme. Only qualified PGA TOUR players are eligible for these grants, which vest over time and are dependent on career accomplishments, current accomplishments, future participation and services, and membership status on the tour.
With the completion of the required regulatory permissions, the Public Investment Fund (PIF) may co-invest in the future as a result of the deal announced on wednesday.
For golf enthusiasts worldwide and the PGA TOUR, Wednesday is a historic day.
“We increase the players’ collective commitment to the PGA TOUR’s success by granting league ownership to PGA TOUR members. When we all work together to provide the greatest sports entertainment and shift attention back to the amazing and unrivalled competitive environment that our players, events, and partners produce, fans win. Our organization’s capacity to increase the sport’s value for participants, competitions, spectators, and partners will be strengthened by our partnership with SSG, a group with substantial experience and investment in sports, media, and entertainment.” said Jay Monahan, Commissioner of the PGA TOUR and CEO of PGA TOUR Enterprises.
“We were honoured to cast a unanimous vote in favour of this momentous collaboration between SSG and PGA TOUR Enterprises. Making it possible for participants both now and in the future to have a greater financial and strategic investment in their organisation was crucial for us. This benefits the TOUR both commercially and psychologically since it motivates the players to give their all in bringing our fans the greatest golf experience possible. We are excited for the upcoming chapter and an even more promising future.” said PGA TOUR Player Directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods in a joint statement.
SSG, a group of American sports franchise owners led by Fenway Sports Group, closed on a significant financial and strategic commitment of up to $3 billion today as a member of PGA TOUR Enterprises. SSG will strategically focus on maximising revenue production for the benefit of the players and on identifying opportunities to improve the game of golf globally in exchange for an initial $1.5 billion investment in PGA TOUR Enterprises.
“We are incredibly grateful for the chance to be a part of this significant next stage in the PGA TOUR’s development alongside players. We are excited about this new endeavour because we have a great deal of respect for this amazing game and we firmly think that the PGA TOUR has enormous development potential. We are thrilled to collaborate with the PGA TOUR and its numerous members to develop and enhance the game of golf around the world. We are honoured to be a part of this illustrious institution.” said John Henry, principal owner of Fenway Sports Group and manager of the Strategic Sports Group.
SSG comprises businesses that have collectively managed sports teams for more than 200 years in a number of significant international sports leagues, such as the NFL, NBA, MLB, NHL, and EPL. With backing from Arthur M. Blank, owner and chairman of AMB Sports and Entertainment, and the Cohen Private Ventures leadership, which includes Steven A. Cohen and Andrew B. Cohen, Fenway Sports Group has spearheaded the SSG investment. This new business will also have FSG as a commercial advisor.
Furthermore, the PGA TOUR announced today that talks with PIF on a possible future investment are proceeding as planned, and both sides are striving to reach a final agreement. SSG has approved PIF’s investment, pending any required regulatory assessment and clearances.
The Strategic Alliance between the PGA TOUR and the DP World Tour is still a priority. The original framework talks and agreement revealed last year included the DP World Tour as close partners, and the TOUR is currently debating how to collaborate most effectively for everyone’s ongoing benefit.
The members of the Strategic Sports Group are as follows :
• The Boston Red Sox, Liverpool F.C., Pittsburgh Penguins, RFK Racing, Boston Common Golf, and other Fenway Sports Group teams are among the FSG Partners.
• John W. Henry, Fenway Sports Group Principal
• Steven Cohen Owner, Chairman, and CEO of the New York Mets; Chairman and CEO of Point72 ; Owner of TGL New York.
• Co-founder of Home Depot Arthur M. Blank is also the owner and chairman of AMB Sports and Entertainment, which includes the PGA TOUR Superstore, Mercedes-Benz Stadium, Atlanta Drive GC, and the Atlanta Falcons and Atlanta United.
• Tom Warner Chairman of the Fenway Sports Group.
• Fenway Sports Group President Mike Gordon.
• Sam Kennedy is the Boston Red Sox’s CEO and President and a partner in Fenway Sports Group.
• Andrew B. Cohen, Vice Chairman of the New York Mets and Chief Investment Officer and Co-Founder of Cohen Private Ventures
• Mark Attanasio, Founder & Managing Partner, Crescent Capital Group; Principal, Milwaukee Brewers and Norwich City.
• Linda Henry is a partner of Fenway Sports Group, co-owner and CEO of Boston Globe Media, and an investor in the WNBA and League One volleyball.
• Alec Scheiner, Otro Capital’s co-founder and partner.
Main Street Advisors, which include 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 are other investors in the Fenway Sports Group.
PGA TOUR is receiving financial advice from Allen & Company LLC and the Raine Group; legal advice is coming from Wachtell, Lipton, Rosen & Katz; and tax advice is coming from McDermott Will & Emery. The Strategic Sports Group is being advised legally by Hogan Lovells and Shearman & Sterling.
