PGA Tour and Strategic Sports Group confirm player ownership offer
The PGA Tour and Strategy Sports Group have confirmed a partnership in a deal that will see the billionaires invest up to $3 billion in a newly formed trading company.
PGA Tour Enterprises was formed last June after the PGA Tour hired LIV Golf amid merger talks. A commercial entity allows the entity to attract investment and capital, which the Tour aims to leverage to provide players with an equity stake in the organization.
Spectrum, led by Fenway Sports Group and billionaires John Henry and Tom Werner, will make an initial $1.5 billion investment in PGA Tour Enterprises. The funds will be used for the strategic focus of maximizing revenue for the benefit of players. The PGA Tour said players can immediately become shareholders in the new company.
Stock positions vest over time and are based on career achievements, recent achievements and future participation. Only PGA Tour Members are eligible for grants. About 200 players will initially qualify.
“Today is an important moment for the PGA Tour and golf fans around the world,” said Jay Monahan, PGA Tour Commissioner and CEO of PGA Tour Enterprises.“By making PGA TOUR members owners of their leagues, we strengthen players’ collective investment in the TOUR’s success.”
PGA Tour player directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods have approved the investment.
"We are proud to have voted unanimously in support of this historic partnership," the players said in a joint statement. "For us, it is important to provide greater financial and strategic support to participants today and in the future." The opportunity to invest in its organization is significant. Not only does this further strengthen the Tour from a business perspective, but it also encourages players to be fully committed to continuing to deliver and enhance the best golf possible for our fans."
Part of Casino Hopeful Investment Group
TUESDAY REPORT Steve Cohen with Strategic Sports. Cohen and Andrew Cohen (the latter of whom is chief investment officer of Cohen Private Ventures and no relation to Steve) were named as investors in Strategic Sports Group in a PGA Tour press release. Cohen invested in PGA Tour Enterprises through his family's investment vehicle.
The New York Mets owner hopes to secure one of three New York state casino licenses and partner with Hard Rock International to build an integrated resort casino near Citi Field in Queens.
Fenway Sports owns Major League Baseball's Boston Red Sox and Liverpool Football Club. In the Premier League, the NHL's Pittsburgh Penguins and three NASCAR teams.
The strategic alliance also includes other professional sports franchise owners. Mark Attanasio, majority owner of the MLB's Milwaukee Brewers, and Wyc Grousbeck, co-owner of the NBA's Boston Celtics, are strategic Shareholder of Strategic Sports Group. Billionaire Marc Lasry once owned the NBA's Milwaukee Bucks and is a member of Strategic Sports Group.
"We are delighted to have the opportunity to serve PGA Tour players during this important next phase of the Tour's evolution," said Henry, manager of the Strategic Sports Group. "Our enthusiasm for this new venture stems from a deep passion for this extraordinary sport. Deep respect and an unwavering belief in the PGA TOUR's vast growth potential. We are honored to partner with this historic organization and look forward to working with the PGA TOUR and its many members to grow and strengthen the game of golf globally."
Strategic Sports Sponsors will advise PGA Tour businesses on how to increase players’ tour revenue. The investment values PGA Tour Enterprises at $12 billion, with Strategic taking an initial 12.5% stake. That share could double to about 25% if the group invests another $1.5 billion as proposed.
Saudi Money
In announcing the strategic investment, the PGA Tour said the deal allows Saudi Arabia's Public Investment Fund (PIF) to co-invest. The sovereign wealth fund finances the controversial new professional LIV golf tour.
The Saudi team, accused of sports money laundering, spent billions to poach PGA Tour stars, offering huge signing bonuses, deep pockets and a shortened schedule that allowed for short selling. There are no pay cuts guaranteed during the 54-hole tournament.
Monaghan acknowledged his opposition to LIV Golf last summer when he announced his intention to merge the tour with LIV Golf. PIF President Yasir Al-Rumayyan is expected to serve as chairman of the PGA Tour Enterprises board of directors, while Monahan will serve as CEO. The PGA Tour retains a majority stake in the company.
A Tour statement said the organization would continue its investment agreement with the PIF. Strategy Sports has agreed to such investment, subject to obtaining all necessary regulatory approvals.
An earlier version of this article incorrectly identified Andrew Cohen as Steve Cohen's son. The two have nothing to do with each other.
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