The PGA Tour’s Historic $3 Billion Deal with SSG
Almost eight months after the proposed framework agreement between the PGA Tour and the Saudi Public Investment Fund (PIF) was announced, the Tour has finalized a $3 billion deal with Strategic Sports Group (SSG). SSG is a group of investors who own some of the most historic franchises in North American pro sports and the English Premier League. This investment is the largest ever in pro golf and will bring a massive influx of money to the PGA Tour.
The negotiations with the PIF are still ongoing, but SSG’s investment marks a significant milestone for the PGA Tour. SSG’s investors have a combined experience of over 200 years in sports ownership across various leagues, including MLB, NFL, NBA, NHL, and EPL.
PGA Tour players will collectively have access to $1.5 billion in equity shares of the new company, PGA Tour Enterprises. The amount for individual players will be determined by their career accomplishments, recent success, and tour membership status. This investment will vest over time, strengthening the collective investment of the players in the success of the PGA Tour.
Meet the Investors of SSG
SSG is a group that seems to have come together specifically for this investment in the PGA Tour. Let’s take a closer look at some of the investors who make up SSG:
John Henry: Principal of Fenway Sports Group
John Henry is the principal of Fenway Sports Group, which owns the Boston Red Sox, Liverpool FC, and the Pittsburgh Penguins, among others. He started his career in finance before becoming involved in sports ownership. Fenway Sports Group has several high-profile investors, including LeBron James.
Mark Attanasio: Owner of the Milwaukee Brewers
Mark Attanasio, the owner of the Milwaukee Brewers, also co-owns Norwich City FC. He is the co-founder of Crescent Capital Group, an investment firm with over $40 billion in assets under management.
Arthur Blank: Owner of AMB Sports and Entertainment
Arthur Blank, the owner of the Atlanta Falcons, also acquired Atlanta United FC. Blank co-founded The Home Depot before entering the sports ownership business.
Steve Cohen: Owner of the New York Mets
Steve Cohen, the owner of the New York Mets, is also the chairman and CEO of Point72, one of the leading hedge funds worldwide. Cohen acquired the Mets in 2020 and also owns the New York franchise in the upcoming new golf league led by Woods and McIlroy.
Wyc Grousbeck: Lead Owner of the Boston Celtics
Wyc Grousbeck, the lead owner of the Boston Celtics, founded Highland Capital Partners, a venture capital firm based in Boston. Grousbeck led the investors who purchased the Celtics in 2002.
Marc Lasry: CEO of Avenue Capital Group
Marc Lasry is the CEO of Avenue Capital Group and was the co-owner of the Milwaukee Bucks. He recently sold a portion of his ownership stake to Cleveland Browns owner Jimmy Haslam.
Implications for the PGA Tour
The $3 billion deal with SSG represents a significant financial boost for the PGA Tour. This investment will not only provide the Tour with much-needed funds but also increase the collective investment of PGA Tour players in the success of the league. The vesting of equity shares for individual players will incentivize their performance and contribute to the overall growth and development of professional golf.
The involvement of these prominent sports owners and investors brings a wealth of experience and expertise to the PGA Tour. Their track records of success in various leagues and sports franchises bode well for the future of the Tour.
Future Negotiations with the PIF
While the deal with SSG has been finalized, negotiations with the Saudi Public Investment Fund (PIF) are still ongoing. The proposed framework agreement between the PGA Tour and the PIF was announced almost eight months ago at the Canadian Open.
The involvement of the PIF in the PGA Tour would further solidify the Tour’s global presence and provide additional financial resources. The outcome of these negotiations will likely have a significant impact on the future direction and growth of the PGA Tour.
A Game-Changing Investment for Pro Golf
The $3 billion deal with SSG is a game-changer for professional golf. This historic investment will not only provide the PGA Tour with substantial financial resources but also bring together a group of experienced sports owners and investors who can contribute to the long-term success and development of the Tour.
PGA Tour commissioner Jay Monahan expressed his excitement about making PGA Tour members owners of their league, highlighting the collective investment of the players in the success of the Tour. This investment has the potential to elevate professional golf to new heights and secure its position as one of the premier sports leagues in the world.
Looking Ahead to a Bright Future
With the $3 billion investment from SSG and ongoing negotiations with the PIF, the PGA Tour is poised for a bright future. The influx of funds and the involvement of experienced sports owners and investors will pave the way for innovation, growth, and increased global recognition for professional golf.
As PGA Tour players become owners of their league, their vested interest in its success will drive them to perform at their best and contribute to the overall development of the Tour. The collaboration between the Tour, SSG, and potentially the PIF sets the stage for an exciting new era in professional golf.
Analyst comment
Positive news. The $3 billion deal with SSG brings a massive influx of money to the PGA Tour and makes it the largest investment in pro golf. PGA Tour players will have access to $1.5 billion in equity shares, incentivizing their performance. The involvement of experienced sports owners and investors bodes well for the Tour’s future. Ongoing negotiations with the PIF could further solidify the Tour’s global presence. The investment has the potential to elevate professional golf and secure its position as a premier sports league. The PGA Tour is poised for a bright future with increased innovation, growth, and global recognition.
