PGA Tour strikes $3 billion deal with Fenway-led investment group. Players to get equity ownership

The PGA Tour is getting a $3 billion investment from Strategic Sports Group in a deal that would give players access to more than $1.5 billion as equity owners. Commissioner Jay Monahan held a conference call with players about the deal that was finalized Tuesday night. (File/AP)
Short Url
Updated 01 February 2024
Follow

PGA Tour strikes $3 billion deal with Fenway-led investment group. Players to get equity ownership

  • The Public Investment Fund of Saudi Arabia is not part of the deal yet, though the tour said negotiations with the PIF are ongoing for it to also become a minority investor
  • Jordan Spieth: The coolest thing about it is the players are now owners

PEBBLE BEACH, California: The PGA Tour is getting a $3 billion investment from Strategic Sports Group in a deal announced Wednesday that would give players access to more than $1.5 billion as equity owners in the new PGA Tour Enterprises.

The launch of PGA Tour Enterprises, with SSG as a minority partner, comes eight months after the PGA Tour signed a framework agreement with the Saudi backers of LIV Golf for a commercial venture, which ultimately led to private equity groups wanting to join.

The Public Investment Fund of Saudi Arabia is not part of the deal yet, though the tour said negotiations with the PIF are ongoing for it to also become a minority investor.

“The coolest thing about it is the players are now owners,” said Jordan Spieth, one of six players on the PGA Tour board. “So not only do they benefit with the tour, they now are equity owners so they want to push it themselves, they want to make the product better themselves. Not that they didn’t before, but you directly benefit from owning a piece.”

How much of a piece remained unclear. PGA Tour Commissioner Jay Monahan held a conference call with players from all its main tours (including the PGA Tour Champions and Korn Ferry Tour) on Wednesday morning that included Tiger Woods, whom the tour appointed to the board last summer at the players’ request.

“As the tour grows, we grow,” Woods told players, according to Golf.com, which obtained access to the call. “So the more we invest into the tour, the more we get the benefits of it, which has never been — it’s never happened in sports history. So we’re the first. Exciting for me to be able to be part of that.”

Also uncertain is where this leaves the PIF.

The tour said its deal with SSG allows for a co-investment from the PIF, subject to regulatory approval. A Senate subcommittee wrote a letter earlier this week to Yasir Al-Rumayyan, governor of the PIF, that it is proceeding with its inquiry into framework agreement with the PGA Tour that was announced June 6.

“At this point if the PIF were interested in coming in on terms that our members like and/or the economic terms are at or not beyond SSG’s and they feel it would be a good idea, I think that’s where the discussions will start,” Spieth said. “I understand it could take some time to even come to those kind of terms, and then beyond that the Department of Justice and a regulatory review would be intact.”

LIV Golf starts its third season this week in Mexico and is likely to be around through all of next year depending on the timing of any investment by the PIF in the PGA Tour. How the fractured landscape of golf gets repaired remains as cloudy as how specifically equity ownership is distributed.

The PGA Tour plans several player meetings over the next month to work through details.

“By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour,” Monahan, who will be CEO of PGA Tour Enterprises, said in the formal announcement.

He said a partnership with SSG — a group comprised of American owners and executives of pro sports franchises — will “enhance our organization’s ability to make the sport more rewarding for players, tournaments, fans and partners.”

The PGA Tour Enterprises board would be comprised of seven players, the PGA Tour commissioner, four members of SSG and an independent director who’s also on the tour board.

The unique equity program in golf would give some 200 players access $930,000 in initial grants. Starting next year, PGA Tour Enterprises would use $600,000 for recurring grants for future players.

While specific details of the equity ownership program were not announced, the initial grants would be based on career accomplishments, recent achievements and PGA Tour status. The grants would vest over time.

SSG is led by Fenway Sports Group and includes owners Marc Attanasio (Milwaukee Brewers), Arthur Blank (Atlanta Falcons), Steven Cohen (New York Mets), Wyc Grousbeck (Boston Celtics), Tom Werner and John Henry (Boston Red Sox), and Marc Lasry (Milwaukee Bucks). Others in the group include Alec Scheiner, former Cleveland Browns president and co-founder of Otro Capital.

“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, the principal owner of Fenway Sports and manager of SSG.

SSG is investing an initial $1.5 billion into PGA Tour Enterprises and will concentrate on maximizing revenue for the benefit of the players and on finding opportunities to enhance golf across the world. Another $1.5 billion would go toward PGA Tour business.

The deal was unanimously approved by the PGA Tour board.

“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,” the player directors said in a joint statement. “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 tour said it was making progress in its negotiations with the Saudi national wealth fund on future investments and an ultimate agreement. Under the original framework agreement, Al-Rumayyan, the PIF governor, was to be chairman of PGA Tour Enterprises.

Now the commercial arm launches without any deal with the Saudis.

The European tour was part of the framework agreement on June 6, and it has a strategic alliance with the PGA Tour. The tour said only it is discussing how they can work together for a mutual benefit.

Key to the original deal with the Saudis was dismissing the lawsuits involving LIV Golf. Since the rival league was launched in June 2022, LIV has lured several prominent players and major champions such as Dustin Johnson, Brooks Koepka, Phil Mickelson and Bryson DeChambeau.

As the tour’s negotiations with the PIF neared its original Dec. 31 deadline, LIV signed Masters champion Jon Rahm in a deal reported to be in the neighborhood of $500 million. It also signed Tyrrell Hatton, currently No. 16 in the world.

Rory McIlroy, who gave up his seat on the tour board in November, said on Tuesday he didn’t think there should be any punishment for a LIV player eligible to return to the tour.


Paul Waring shoots 61 in Abu Dhabi to set 36-hole record on European tour with 19-under par

Updated 56 min 23 sec ago
Follow

Paul Waring shoots 61 in Abu Dhabi to set 36-hole record on European tour with 19-under par

  • Waring, who opened with a 64 on Thursday, made nine birdies and an eagle in a bogey-free round at Yas Links
  • Rory McIlroy made a triple bogey on No. 17 in his second successive 67

ABU DHABI: Paul Waring hit the shot of his life to complete a career-low 11-under 61 in the second round of the Abu Dhabi Championship on Friday and establish a five-stroke lead heading into the weekend of the European tour’s first playoff event.
The No. 229-ranked Englishman hit a draw with a 3-wood from about 260 yards to inside 4 feet at No. 18 and tapped in the birdie putt to move to 19-under par for the tournament.
The European tour confirmed to The Associated Press that it is the lowest 36-hole score to par in the tour’s history.
Waring, who opened with a 64 on Thursday, made nine birdies and an eagle in a bogey-free round at Yas Links and set a course record.
First-round leader Tommy Fleetwood of England (68), Johannes Veerman of the United States (67) and Danish players Niklas Norgaard (65) and Thorbjorn Olesen (67) were tied for second place on 14 under.
Rory McIlroy made a triple bogey on No. 17 in his second successive 67 and was nine strokes off the lead.
McIlroy can clinch a sixth Race to Dubai title with a win this week.


Slot not surprised by flying start at Liverpool

Updated 08 November 2024
Follow

Slot not surprised by flying start at Liverpool

  • Slot appeared to have a tough ask to follow Jurgen Klopp
  • The Dutch coach has won 14 and drawn one of his 16 matches in charge

Liverpool: Arne Slot said he is not shocked by a stunning start to life in charge of Liverpool as the Reds have stormed to the top of the Premier League and Champions League.
The Dutch coach has won 14 and drawn one of his 16 matches in charge in all competitions as the holders have also progressed to the League Cup quarter-finals.
Slot appeared to have a tough ask to follow Jurgen Klopp.
But he has built on the solid foundations left by the German after Liverpool finished third in the Premier League behind Manchester City and Arsenal last season.
“Surprise isn’t the right word I’d use because I knew the quality of our team. But quality is one thing, to be consistent is a second thing,” said Slot at his pre-match press conference ahead of hosting Aston Villa on Saturday.
“From the moment I started working with them I saw how much energy they put in on a daily basis and that is I think the reason you can be consistent.”
Liverpool were inspired by the power of the Anfield crowd to come from behind to beat Brighton 2-1 last weekend to move two points ahead of City at the top of the Premier League.
A similar atmosphere helped blow Bundesliga champions Bayer Leverkusen away 4-0 in the Champions League on Tuesday.
Slot is keen to keep his players’ feet on the ground but is happy for the fans to get excited about the possibility of just a second league title in 35 years.
“If the end result of them being excited is to bring the atmosphere of the second half against Brighton and the whole game against Leverkusen, I am hoping they will keep being excited because that atmosphere helped us a lot,” added the former Feyenoord boss.
Diogo Jota remains sidelined but should return after November’s international break.


Pakistan’s Muhammad Asif wins IBSF World Snooker Championship in Qatar

Updated 08 November 2024
Follow

Pakistan’s Muhammad Asif wins IBSF World Snooker Championship in Qatar

  • Asif defeated Iran’s Ali Ghareghozlou 5-3 to clinch the title for 3rd time
  • PM Shehbaz Sharif promises to set up world-class facilities for sportsmen

ISLAMABAD: Prime Minister Shehbaz Sharif has congratulated Pakistani cueist Muhammad Asif for winning the International Billiards and Snooker Federation (IBSF) World Snooker Championship in Qatar for the third time, Pakistani state-run media reported on Thursday.
Asif defeated Iran’s Ali Ghareghozlou 5-3 to clinch the title in a thrilling final on Nov. 6. He outclassed Ali 5-3: 70-25, 7-87(84), 82(56)-8, 106(106)-08, 82-12, 43-91(58), 0-118 and 93(80)-4.
“Asif made the entire nation proud by winning the international championship for the third time,” PM Sharif was quoted as saying by the Radio Pakistan broadcaster. “The talented youth of Pakistan are highlighting the country’s name in the fields of sports.”
The IBSF, founded in 1971, is the governing body for billiards and snooker worldwide. It represents 85 member countries and is recognized by the World Confederation of Billiard Sports and the International Olympic Committee.
Asif, 42, first won the IBSF World Snooker Championship in 2012 and went on to win it again in 2019. His victory ties him with India’s Pankaj Advani who has also won the World Snooker Championship thrice.
The Pakistan prime minister said Asif’s family and coach also deserved recognition, adding that providing quality facilities to Pakistani players was top priority of his government.
“The government is making all possible efforts to provide international standard facilities to the players,” he added.
 


Raphinha’s evolution into a more versatile scorer is a big part of Flick’s great start at Barcelona

Updated 08 November 2024
Follow

Raphinha’s evolution into a more versatile scorer is a big part of Flick’s great start at Barcelona

BARCELONA: Raphinha knew he would have a hard time getting off Barcelona’s bench with the soccer world enthralled by teen phenom Lamine Yamal and the club eyeing to sign another hot prospect in the attack.

Instead of pouting, he evolved.

While the entire Barcelona team improved under new coach Hansi Flick, no player has made such a leap forward this season as Raphinha.

His 12 goals and team-leading 10 assists across all competitions are a big part of why Barcelona is playing its best soccer since the exit of Lionel Messi more than three years ago.

But if one player looked to be on the out when the season started, it was the Brazil forward.

Raphinha seemed destined to become a second-choice right-side winger after 17-year-old Yamal helped Spain win the European Championship in dazzling style. To make matters worse, the club was heavily linked to a possible transfer bid to pry Spain left-side winger Nico Williams away from Athletic Bilbao.

That move never materialized for Williams, but Raphinha was still left with either playing in a new position or being a backup to Yamal.

And when Flick gave him the chance to have a new role, he made the most of it.


England gives call-up to more new faces in final squad before Thomas Tuchel takes over

Updated 08 November 2024
Follow

England gives call-up to more new faces in final squad before Thomas Tuchel takes over

LONDON: Southampton defender Taylor Harwood-Bellis and Newcastle left-back Lewis Hall were called up to the England squad for the first time on Thursday as interim coach Lee Carsley made his final selection before Thomas Tuchel takes charge.

Tuchel does not start until January after being hired to lead the national team’s bid to win the 2026 World Cup.

Carsley will oversee England’s final Nations League games against Greece and Ireland and has continued to look toward a new generation of players, having already handed debuts to Angel Gomes, Morgan Gibbs-White and Noni Madueke since taking over on a temporary basis from Gareth Southgate in August.

Carsley said had not discussed his selection with Tuchel.

“He hasn’t had any influence on the squad selection. I’ve spoken to him by text, but it’s literally congratulations,” he said. “I think he’s highly respectful of the job that not only myself, but the staff are doing.

“We’ve been left to it, like we always have.”

England plays Greece in Athens on Nov. 14 and Ireland at Wembley on Nov. 17.

Carsley will resume his role as England Under-21 coach after those games.