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The PGA Tour announced on Wednesday (January 31) about the formation of their new for-profit venture, PGA Tour Enterprises. This program is in partnership with the Strategic Sports Group (SSG), a consortium of billionaire sports team owners.
The SSG has invested $3 billion in the program which would look after the PGA Tour and DP World Tour’s commercial businesses and rights. According to the venture, about 200 of the PGA Tour’s eligible players would become equity holders.
Moreover, the funds spent by the new golf entity are expected to benefit the tour's digital platforms, data initiatives and other investment prospects.
PGA Tour Commissioner, Jay Monahan, expressed optimism regarding the growth of PGA Tour Enterprises. He said that the commercial expansion of the venture would benefit golfers and their collective investment would contribute to the success of the PGA Tour.
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Jay Monahan said (via PGA Tour):
“Today marks an important moment for the PGA TOUR and fans of golf across the world. By making PGA TOUR members owners of their league, we strengthen the collective investment of our players in the success of the PGA TOUR.”
He added:
“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.”
It is important to note that previously, the PGA Tour was about to sign a deal with PIF Fund. However, that deadline has been extended to 2024.
As for the PGA Tour Enterprises, the players (based on their past, present and future achievements) would be receiving a share from the amount of $1.5 billion. Additionally, as part of the arrangement, the tour and players, particularly those who didn't join the Saudi-backed league, would be provided with financial stability.
PGA Tour Enterprises to have a 13-person board
The recent disclosure of PGA Tour Enterprises has resulted in certain modifications. The for-profit venture would have a 13-person board, in addition to Jay Monahan retaining his CEO position.
Among the 13 members, seven are golfers, consisting of six policy board player directors. Additionally, four representatives from the SSG group would join the board.
This includes John Henry, Andy Cohen, Sam Kennedy and Arthur Blank. There would also be one PGAT Commissioner and an additional director from the PGAT Policy Board as part of the 13-person board.
It would be interesting to see the PGA Tour's stance on the PIF deal and whether any other deal would be happening anytime soon.
