Saudi Arabia is investing huge amounts of money to attract the best athletes and have the best sports leagues in the world. One of the sports it has targeted is golf with its LIV Golf tour. Given this momentum, its main competitor, the PGA Tour, is making moves to not lose ground and continue to be the best professional tour.
The North American tour reported the creation of PGA Tour Enterprises, which would not have been possible without the association with the Strategic Sports Group (SSG), a business aimed at turning golfers into shareholders.
"By making PGA TOUR members owners of their league, we strengthen the collective investment of our players in the success of the PGA TOUR. 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," said Jay Monahan, PGA Tour commissioner. "And partnering with SSG – a group with extensive experience and investment across sports, media and entertainment – will enhance our organization’s ability to make the sport more rewarding for players, tournaments, fans and partners."
A $3 billion investment
SSG will make an initial investment of $1.5 billion, according to a PGA Tour statement, with the goal of "maximizing revenue generation for the benefit of the players and on finding opportunities to enhance the game of golf across the world." This "financial and strategic" investment could reach $3 billion in the future.
"We greatly appreciate the opportunity to join PGA TOUR players in this important next phase of the PGA TOUR’s evolution. ... 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," said John Henry, SSG manager.
Golfers support the move
Several PGA Tour players such as Tiger Woods, Jordan Spieth and Patrick Cantlay jointly stated that they strongly supported the creation of this company:
We were proud to vote in unanimous support of this historic partnership between PGA TOUR Enterprises and SSG. ... 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.
