According to a report by Bloomber, the PGA Tour is closing in on a major deal that will see the North American circuit boosted by a $3bn investment.
The PGA Tour is reportedly closing in on a major deal that will see the circuit infused with a cash injection of an almighty $3bn.
According to Bloomberg’s report, Strategic Sports Group is prepared to provide funding for the Tour within the following week. SSG comprises of a group of billionaires led by Tom Werner and John Henry’s Fenway organization, who possess ownership of both Liverpool FC and the Boston Red Sox.
The agreement with SSG is distinct from the arrangement made between the Tour and Saudi Arabia’s Public Investment Fund (PIF).
The PIF, who are the main financial supporters of LIV Golf, have already invested a substantial amount of money to attract renowned golf champions to their competition.
A framework agreement was supposed to be ratified by the turn of the year but talks stalled in light of SSG’s involvement.
The shock agreement came amid unprecedented disruption in men’s professional golf.
It also signalled the end of the expensive litigation between the tours.
Records have shown the Tour spent up to $22m in legal fees at the height of their battle against LIV.
The detailed report by Bloomberg, which you can read here, suggest SSG are willing to initially invest $3bn into the Tour.
Part of the report states:
“The initial investment from Strategic Sports Group could be about $3bn, with an additional tranche from the Saudi Public Investment Fund, the people said, asking not to be named discussing ongoing talks.
“The deal could value PGA Tour Enterprises — the for-profit entity created to house the Tour’s commercial interests — at about $12bn, one of the people said.
“The deal may not initially include the Saudi-backed LIV Golf, with talks continuing on how to include the rival league, the people said. Any potential investment and valuation could still change, the people added.”
Bloomberg stated the Tour and SSG declined to comment.
Meanwhile, LIV Golf are set to begin their third campaign in Mayakoba, Mexico.
According to the conditions of the mentioned framework agreement, it was specified that LIV/PIF would refrain from signing any additional golfers from the establishment during the peace negotiations. However, due to antitrust concerns, the U.S. Department of Justice eliminated that clause when closely examined.
LIV subsequently recruited Jon Rahm, the current Masters champion, leading to increased apprehension among those in positions of authority.
Tyrrell Hatton, Rahm’s teammate for the 2023 Ryder Cup, was tempted to join LIV by supposedly agreeing to receive a payment of £50m.