The PGA Tour and Strategic Sports Group announced Jan. 31 the creation of PGA Tour Enterprises, a commercial organization that will invest up to $3 billion into golf.
The new company “will provide strategic focus on maximizing revenue generation for the benefit of the players and on finding opportunities to enhance the game of golf across the world.”
The venture will be controlled by the Ponte Vedra Beach-headquartered PGA Tour and its players will have the opportunity to become equity partners. PGA Tour Enterprises also is considering participation by future players.
“Today marks an important moment for the PGA Tour and fans of golf across the world,” Jay Monahan, PGA Tour commissioner and CEO of PGA Tour Enterprises, said in the announcement on the PGA Tour website.
“By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour.”
SSG, a consortium of sports team owners led by Fenway Sports Group, is investing an initial $1.5 billion into PGA Tour Enterprises that could grow to $3 billion.
Fenway Sports Group is the owner of the MLB’s Boston Red Sox, the Premier League’s Liverpool F.C. and the NHL’s Pittsburgh Penguins, among other businesses.
“We greatly appreciate the opportunity to join PGA Tour players in this important next phase of the PGA Tour’s evolution,” said John Henry, principal owner of Fenway Sports Group and manager of the SSG.
“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. 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 also includes Arthur M. Blank, the owner of the Atlanta Falcons; Steven A. Cohen, owner of the New York Mets; and others, including NBA star LeBron James.
PGA Tour Player Directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods also backed the deal.
“We were proud to vote in unanimous support of this historic partnership between PGA Tour Enterprises and SSG,” they said in a joint statement.
“It was incredibly important for us to create opportunities for the players of today and in the future to be more invested in their organization, both financially and strategically. 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. We are looking forward to this next chapter and an even brighter future.”
The PGA Tour said its financial adviser is Allen & Company LLC and the Raine Group; its legal adviser is Wachtell, Lipton, Rosen & Katz; and its tax counsel is McDermott Will & Emery.
Hogan Lovells and Shearman & Sterling are serving as legal advisers to the Strategic Sports Group