It was announced this week that the Strategic Sports Group has invested $3 billion in the PGA Tour, a move spearheaded by John Henry and his Fenway Sports Group.
This move is not only notable for the substantial amount of money invested but for also creating a pathway for PGA Tour players to access more than $1.5B as equity owners in the newly established PGA Tour Enterprises.
For Henry, this strengthens an already impressive sports portfolio for his Fenway Sports Group, one that includes – the Boston Red Sox and the Premier Football (Soccer) club Premier. Other owners include Wyc Grousbeck (Boston Celtics), Steven Cohen (New York Mets), and Arthur Blank (Atlanta Falcons).
Henry, who is also a Boston Red Sox owner, principal owner of Fenway Sports, and manager of SSG, aims to have $1.5B funneled into the PGA Tour Enterprises to strictly focus on maximizing revenue for the players and firming golf’s standing in the sports world.
“Our enthusiasm for this new venture stems from a very deep respect for this remarkable game and a firm belief in the expansive growth potential of the PGA Tour,” said Henry, who saw his group investment unanimously approved by the PGA’s board, which includes players such as Tiger Woods and Jordan Speith.
In a joint statement released by the players, the importance of giving Tour members more pull both financially and strategically was acknowledged.
“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.”
According to Yahoo! Finance, any additional funds from the newly created conglomerate that is valued at $12B could be used to improve PGA broadcasts and digital strategy, potentially providing a more consumer-friendly product for fans, which was also recognized in the players’ joint statement.
“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.”
PGA Tour commissioner Jay Monahan held a conference call with the players regarding the deal this past Wednesday as the deal was finalized on Tuesday night.
Monahan is expected to fill the position of CEO of the PGA Tour Enterprises and detailed exactly the hope and aim of giving players accessibility to equity ownership. “By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour. This will enhance our organization’s ability to make the sport more rewarding for players, tournaments, fans, and partners.”
Under the equity program, nearly 200 PGA Tour players would have access to initial grants, with the Tour Enterprises intending to create recurring grants for future players. Grants would be tied to things such as career accomplishments, recent accolades, and overall tour status.
SSG’s deal was not only delayed but mired in controversy as debates were waged over things such as player control, broadcast/sponsorship contracts, and the role of Saudi Arabia’s Public Investment fund.
As it currently stands, the PIF is not looped into the deal, although talks of a future investment will remain ongoing. The initial framework of the deal had PIF governor Yasir Al-Rumayyan as the chairman of the PGA Tour Enterprises and it is unknown at this time how the agreement with SSG impacts those plans.
Reps from the PGA Tour have stated that any PIF investment in the PGA Tour Enterprises would be a minimal one and would be contingent on regulatory approval.
While things on that front remain in limbo, LIV has snatched up big-name golfers such as John Rahm and Tyrrell Hatton, who were Ryder Cup teammates.
