PGA Tour, SSG partner to launch PGA Tour Enterprises as negotiations with Saudi PIF will continue
CBSN
Players will receive equity shares in the new entity under this agreement
The PGA Tour and Strategic Sports Group, a collection of U.S. sports team owners, have reached a deal in which SSG will invest up to $3 billion into the PGA Tour's new for-profit entity, PGA Tour Enterprises, the PGA Tour announced on Wednesday. Through this investment, nearly 200 PGA Tour players will receive equity in PGA Tour Enterprises with ownership share based on career accomplishments, achievements and future participation as a PGA Tour member. Non-qualified PGA Tour players will not receive equity.
SSG will initially invest $1.5 billion in PGA Tour Enterprises with the second half of the payment triggered down the road. This transaction also leaves room for the Saudi Arabian Public Investment Fund to enter the fold, which SSG has consented to, but only once regulation requirements are approved.
The PGA Tour also confirmed it is continuing to negotiate with the Saudi PIF on a future investment and merger agreement. The PGA Tour's strategic alliance partner, the DP World Tour, remains in the conversation and an area of focus.
