Tag: Strategic Sports Group

Greg Norman sends letter to LIV Golf staff regarding $3 billion investment in PGA Tour

“Nothing announced by other tours or investment groups changes LIV Golf’s positive trajectory or future plans.”

PLAYA DEL CARMEN, Mexico — LIV Golf CEO and Commissioner Greg Norman’s message to his entire staff in relation to the news of the Strategic Sports Group’s $3 billion investment in the PGA Tour to create a new for-profit entity was simple: onward.

In a letter obtained by Golfweek sent just days before the start of the 2024 LIV Golf League season at Mayakoba’s El Camaleon Golf Course in Mexico, Norman wrote to his staff to not just hype up LIV Golf’s third official season, but to also downplay any negative impact the SSG investment may have on LIV’s future.

An excerpt from the letter:

As you may have seen, the PGA Tour made an announcement this morning about an investment partner. Let me make one thing very clear: nothing announced by other tours or investment groups changes LIV Golf’s positive trajectory or future plans.

We started LIV Golf with the goal of creating something new, taking the game to a global, diverse audience and driving innovation while growing golf’s fanbase. More investment in golf is a great thing for the game and for us. It’s a positive development for our players, our fans, and for the long-term future of the game.

Golf is now viewed as an asset class. We proved this was possible and are now in a unique position to mold and drive this incredible growth opportunity. This broader interest and commitment to the game, and investment in its future, would not have happened without the emergence of LIV Golf as an innovative force in the golf ecosystem.

Norman said the league was “moving full steam ahead” into 2024 and beyond and that he has “never been more confident in the league, the people involved, and our supporters all over the world.”

Just seven months ago the Tour announced a framework agreement with the DP World Tour and Saudi Arabia’s Public Investment Fund to create what we now know today as PGA Tour Enterprises. The Tour confirmed in a release on Wednesday that progress has been made in ongoing negotiations with the PIF, LIV Golf’s financial backers, on a potential future investment. That same release also stated that PGA Tour Enterprises allows for a co-investment from the PIF in the future, “subject to all necessary regulatory approvals.”

The previous deadline of Dec. 31, 2023, to come to an agreement was missed, but both sides have ventured on. The PGA Tour now has more money to spend and LIV has new assets in former Tour players like Jon Rahm and Tyrrell Hatton. As Norman would say, onward they go.

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‘Any investment into the game of golf is gigantic’: LIV Golf players react to $3 billion outside investment in PGA Tour

“What I can say is that any investment into the game of golf is gigantic, especially on their side,” said DeChambeau.

PLAYA DEL CARMEN, Mexico — The Strategic Sports Group’s $3 billion investment to partner with the PGA Tour to create a new for-profit entity was undoubtedly the golf news of the day.

Just seven months ago the Tour announced a framework agreement with the DP World Tour and Saudi Arabia’s Public Investment Fund to create what we now know today as PGA Tour Enterprises. The Tour confirmed in a release on Wednesday that progress has been made in ongoing negotiations with the PIF on a potential future investment. That same release also stated that PGA Tour Enterprises allows for a co-investment from the PIF in the future, “subject to all necessary regulatory approvals.” In the original framework agreement, the PIF would’ve had the right of first refusal to any outside money if a deal was passed by the original deadline on Dec. 31, 2023 deadline.

A lot can change in seven months.

Given the PIF’s role as the financiers of LIV Golf, players were asked ahead of the 2024 season opener at Mayakoba’s El Camaleon Golf Course in Mexico about the new deal and their confidence level that the PIF would eventually join the PGA Tour Enterprises party, but even the always outspoken Bryson DeChambeau didn’t have much of any real substance to say.

“Look, I don’t know exactly how it’s all going to shake out, when it’s all said and done. I don’t know what it really means for the PIF’s position in it,” he said of the SSG investment. “What I can say is that any investment into the game of golf is gigantic, especially on their side.”

“You’re just going to see both entities continue to grow, and I hope at some point we’ll come back together. It needs to happen,” DeChambeau added. “I hope people can just put down their weapons and come to the table and figure it out because that’s what’s good for the game of golf and for fans in general. But like I said, any additional capital going into the game of golf is always positive. I’ve always said that.

“It may not be exactly what we all think it should be,” he continued, “but as time goes on, I think things will settle down in a positive way for both.”

“Yeah, that was really in the back of my mind, like really far back in my mind,” said LIV’s newest member Jon Rahm, who joked he was more worried about filling his roster for the 2024 season opener this week. “There’s a lot bigger people that are a lot smarter than me that are going to be worrying about that that actually have a say in it, and they should be thinking about it. I think we’re here to play golf, perform, and whatever comes, comes.”

DeChambeau is unsure whether the SSG news will push back or speed up the Tour’s discussions with the PIF, but did compliment Rory McIlroy for his recent comments on accepting the reality of Saudi Arabia’s investment in golf and that players who left for LIV shouldn’t be punished.

“I appreciate the sentiment that he is providing out to the public now. I think his words are from a much more neutral position as the likes of us over here at LIV have been since day one,” said DeChambeau, who was the last player to remove his name from the initial lawsuit against the PGA Tour. “I think it’s positive, what he’s saying now, and I appreciate that.”

“I’ve spoken to Rory a bit in the past week and back in December. That’s kind of along the lines of what he said to me. It’s not a surprise to hear him say that in the media,” added Tyrrell Hatton, who joined Rahm’s Legion XIII team. “Ultimately, I would like to still be able to play events on the other two tours. But we’ll see how all that works out.”

A three-time teammate of both McIlroy and Hatton in the Ryder Cup, Rahm echoed what Hatton had to say.

“I haven’t spoken to him a lot recently. But he might have had a change in thought process, as in maybe with some of the things he said in the past,” Rahm said. “I think he might be seeing that the landscape of golf is changing and at some point you need to evolve. So I think he might be seeing that, and everybody is entitled to their opinion, but it’s nice to have the support from a player the caliber of Rory, especially those Ryder Cup remarks he made early on. I think that’s an important statement for change to be said.”

While both sides of the professional golf aisle believe the game will be better when it’s united, they don’t seem to agree or even know how to get there. The SSG investment was a step forward for the Tour, and only time will tell if the PIF can get on equal footing.

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PGA Tour pros, fans and media react to PGA Tour and Strategic Sports Group $3 billion deal

The landscape of golf is changing.

On Wednesday, the PGA Tour and Strategic Sports Group announced PGA Tour Enterprises, a new program that transforms players into equity holders. SSG is made up of billionaire sports team owners, including Fenway Sports Group (Boston Red Sox, Liverpool).

Of the $3 billion investment, $1.5 billion will be given to a pool of nearly 200 players, with the highly-ranked players getting more. SSG is on board with the Tour’s negotiations with Saudi Arabia’s Public Investment Fund, but there will be regulatory issues when it’s time to make a deal.

As you’d expect, this news quickly made its way around social media as the landscape of professional golf continues to change.

Here are some reactions to the deal between the Tour and SSG.

Strategic Sports Group, PGA Tour finalize $3 billion investment deal to create PGA Tour Enterprises

SSG will initially invest $1.5 billion into the new for-profit entity.

On Wednesday morning, PGA Tour commissioner Jay Monahan announced to players the Strategic Sports Group (SSG), an outside investment group headlined by Fenway Sports Group and comprised of several high-level U.S.-based sports owners, has partnered with the Tour to create PGA Tour Enterprises.

The SSG will invest up to $3 billion, with an initial investment of $1.5 billion. The player grants will vest over time and will be based on career accomplishments, recent achievements, etc. Only qualified PGA Tour players are eligible.

A statement released Wednesday morning said that “nearly 200 PGA Tour members will have the opportunity to become equity holders” in the new for-profit entity. PGA Tour Enterprises “is also considering participation by future PGA Tour players that would allow them to benefit from the business’s commercial growth,” meaning players who return from LIV Golf or make it to the Tour from college will have access once they regain membership.

“Today marks an important moment for the PGA Tour and fans of golf across the world,” said Monahan in a statement.”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. 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.”

The release also stated that PGA Tour Enterprises allows for a co-investment from the PIF in the future, “subject to all necessary regulatory approvals.”

Back on June 6, 2023, the Tour announced a framework agreement with the DP World Tour and Saudi Arabia’s Public Investment Fund to create a for-profit golf entity known as PGA Tour Enterprises. Four months later, the PGA Tour’s policy board announced it had advanced discussions with the SSG and that it had not shut the door on the PIF.

The Dec. 31 deadline to come to a definitive agreement with the PIF was extended, and Monahan sent a memo to players that stated “active and productive” negotiations would continue into 2024 with the PIF based on the progress made to date. Monahan and Al-Rumayyan reportedly met last week in Saudi Arabia to continue negotiations.

Why bring in outside investors if talks with the PIF are continuing? One could argue that bringing in the SSG would dilute the Saudi investment and make the deal more palatable given the U.S. government’s various questions. On the flip side, such a move might be seen as a way for the Tour to have its cake and eat it, too, by pushing the Saudis out after ending the litigation with the framework agreement. The former seems more realistic and would be a step towards reuniting the game, while the latter would be another pivot from the Tour that would only lead to more battles with LIV.

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PGA Tour Commissioner Jay Monahan invites membership to ‘important’ update on Wednesday

Golfweek also has learned that a Tour Player Advisory Council call is scheduled ahead of the larger update.

PGA Tour Commissioner Jay Monahan invited members of all three tours to participate in “an important” and “timely update” during a conference call scheduled for 9:30 a.m. ET.

Golfweek also has learned that a Tour Player Advisory Council call is scheduled ahead of the larger update at 8 a.m.

A copy of Monahan’s memo also has been leaked on the internet. The memo didn’t specify what the topic of the call will be, but it is assumed it is to share details of a deal with Strategic Sports Group, a collective of several investors and firms, fronted by the Fenway Sports Group, which the Tour has been in advanced negotiations with for several months. Rory McIlroy, who relinquished his position as an independent director of the Tour’s Policy Board in November, said he isn’t as plugged in anymore but he had heard that a finalization of terms was imminent.

“I know that they were supposed to vote on it Sunday night and there was a delay, they were supposed to vote on it last night and there was a delay,” he said on Tuesday during a pre-tournament press conference ahead of the AT&T Pebble Beach Pro-Am in Pebble Beach, California. “I feel like this thing could have been over and done with months ago. I think just for all of our sakes that the sooner that we sort of get out of it and we have a path forward, the better.”

It is unclear whether progress has been made in negotiations with Saudi Arabia’s Public Investment Fund, which is the largest investor in LIV Golf. On June 6, Monahan and Yasir Al-Rumayyan announced a framework agreement between the Tour, DP World Tour and PIF to create a new commercial entity. The Dec. 31 deadline to come to a definitive agreement was extended, with Monahan sending a memo to players that stated “active and productive” negotiations would continue into 2024 with the PIF based on the progress made to date. Monahan and Al-Rumayyan reportedly met last week in Saudi Arabia to continue negotiations.

Report: Outside group may begin massive PGA Tour investment as early as next week

The Strategic Sports Group (SSG) may begin its PGA Tour investment sooner rather than later.

The future of professional golf remains uncertain, but according to a report, answers could be around the corner.

The Strategic Sports Group (SSG), an outside investment group headlined by Fenway Sports Group and comprised of several high-level U.S.-based sports owners, may begin its investment in the PGA Tour as early as next week, according to a Sportico report.

Back on June 6, 2023, the Tour announced a framework agreement with the DP World Tour and Saudi Arabia’s Public Investment Fund to create a for-profit golf entity known as PGA Tour Enterprises. Four months later, the PGA Tour’s policy board announced it had advanced discussions with the SSG and that it had not shut the door on the PIF.

ESPN previously reported anywhere from $3 billion to $7 billion may be in play, but Sportico claims the total money for the new entity will be less than the $3 billion figure. According to Sportico, the SSG investment will cover the Tour’s domestic rights. The PGA Tour has yet to respond to Golfweek for comment. A Tour representative told Sportico the information it reported was “incorrect” but did not elaborate further.

One could argue that bringing in outside investors is a way to make the deal more palatable given the U.S. government’s various questions. On the flip side, such a move might be seen as a way for the Tour to have its cake and eat it, too, by pushing the Saudis out after ending the litigation with the framework agreement. The former seems more realistic and would be a step towards reuniting the game, while the latter would be another pivot from the Tour that would only lead to more battles with LIV.

This year was supposed to usher in a new era of professional golf following the last two years that were chock-full of uncertainty. While plenty of questions remain, some answers may be near.

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Meet the Strategic Sports Group investors, PGA Tour and Saudi PIF executives vying for a place in pro golf’s future

Both tours, the SSG and PIF have an unprecedented opportunity to reshape professional golf as we know it.

On Dec. 10, the PGA Tour’s policy board announced it had agreed to advance discussions with the Strategic Sports Group (SSG) – an outside investment group comprised of U.S.-based professional sports team investors. This, of course, came six months after the PGA Tour, DP World and Saudi Arabia’s Public Investment Fund entered a shocking framework agreement to create a for-profit entity known as PGA Tour Enterprises.

On New Year’s Eve, PGA Tour commissioner Jay Monahan updated players on the “meaningful progress” made in negotiations with the SSG and that while the framework agreement deadline of Dec. 31 with the PIF was missed, discussions with the Saudi-backed fund remained “active and productive.”

If both the SSG and PIF are involved as much as $7 billion may be in play, according to ESPN. Both tours, the SSG and PIF have an unprecedented opportunity to reshape professional golf as we know it. The decisions made over the next weeks and months could see the game propelled into the future. But if agreements aren’t reached and the division at the pro level continues, the sport we all love could quickly become tennis, where only the majors receive in-depth coverage while the week-to-week action on tour is relegated to a footnote.

From the consortium of SSG investors to the PIF and PGA Tour executives involved, get to know the people who may have a prominent place in professional golf’s future.

MORE: Breaking down the impact of extending PGA Tour, Saudi PIF and investor negotiations

Outgoing DP World Tour CEO Keith Pelley calls out PGA Tour’s lack of global vision

“I’ve believed that we should unify and all work together. I’ve believed that for years,” said Pelley.

DP World Tour chief executive Keith Pelley has one foot out the door on his way to his next gig as the president and chief executive of Maple Leaf Sports and Entertainment, and the 60-year-old has some thoughts to get off his chest before he leaves the golf industry later this year.

Pelley called out the PGA Tour and its players for a lack of global vision while speaking with reporters ahead of the DP World Tour’s Hero Dubai Desert Classic this week and seemed to hint that his opinions weren’t taken seriously in the past.

“This is a global game. Every business now that is growing wants to be global. What I would like to see is the game becoming unified with a global strategy,” said Pelley, who has held his current title since 2015. “I think the PGA Tour is coming to the realization is global is the key for the growth. They have heard me say it once or twice.”

MORE: European pros react to Pelley leaving the DP World Tour

Pelley echoed PGA Tour commissioner Jay Monahan with his belief that progress has been made towards a deal with the Strategic Sports Group and Saudi Arabia’s Public Investment Fund to create a for-profit golf entity – known as PGA Tour Enterprises – that would aim to reunite the professional game. The initial framework agreement was announced on June 6, 2023.

“Our goal is to unify the game,” Pelley added. “I don’t think all of the dialogue that has happened has been positive for the game and I think that the game is growing at a rapid pace coming out of Covid. The professional game needs to be unified to capitalize on the growth of the amateur game. There’s so many wonderful things happening in our game.”

“That’s what the whole concept was behind the framework agreement, and I think some of the top players in the US are starting to realize that that’s exactly what the purpose of the framework agreement was. It was to unify the game,” he continued. “Unfortunately after that framework agreement, some of the top players in the United States didn’t support it, which we needed them to support. I think they are realizing now that the best way forward is to unify the game. I think we will know the direction of travel over the next couple of months.”

The direction of travel towards an agreement with the SSG and PIF may be clear, but the destination sure isn’t. ESPN has reported that anywhere from $3 billion to $7 billion may be in play if an agreement is reached, but what will a schedule look like? Will the PGA Tour need to cut events? Do LIV Golf and the delayed TGL get placed under the PGA Tour Enterprises umbrella? What will players who resigned membership need to do to regain status? It’s easy to point the finger when you won’t be around to solve the problem.

“If the game didn’t unify, I would be quite disappointed. I’ve believed that we should unify and all work together. I’ve believed that for years,” said Pelley. “So I was overjoyed with what transpired in June, and that was the right direction. I still believe it’s the right direction. What that means in terms of what the product looks like down the road, that’s the second step.”

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PGA Tour board member Webb Simpson on greed in golf, why legacy still matters and why he’s concerned more sponsors may bail

Webb Simpson, as always, offered his perspective on the world of golf.

HONOLULU — On the morning of June 6, a day that will forever live in infamy on the PGA Tour, Webb Simpson was in Toronto at an RBC outing when a couple of the Tour’s independent directors phoned to let him know about the framework agreement that was about to be announced by Tour commissioner Jay Monahan and Yasir Al-Rumayyan of Saudi Arabia’s Public Investment Fund.

“I said, ‘I’m so confused, I have so many questions but I have to go because I’m doing a clinic,'” Simpson recalled on Friday after shooting even-par 70 at the Sony Open in Hawaii.

It’s fair to say that Simpson is still a little bit confused on how the pending deal is going to shake out despite being one of the six player directors serving on the Tour’s board of directors. But Simpson, a seven-time winner during his career, including the 2012 U.S. Open, is always thoughtful when answering questions and generous with his time and proved to be the most willing player director of late to speak candidly on the record.

In a wide-ranging conversation, Simpson touched on greed in golf, why legacy should still matter and his concern that more sponsors could take their money and run to other sponsorship opportunities. [This conversation has been edited for clarity.]

Rory McIlroy explains why the U.S. is crucial to his ‘dream scenario’ global tour

“We’d have, say, a 22-event schedule. That would look pretty good to me.”

Rory McIlroy may no longer be a member of the PGA Tour Policy Board, but that hasn’t stopped the four-time major champion from game planning what the future of professional could look like with the help of the Strategic Sports Group and Saudi Arabia’s Public Investment Fund.

Ahead of his first start of 2024 at the DP World Tour’s Dubai Invitational, McIlroy told Golf Digest on Tuesday he has a “dream scenario” of a global golf tour that reaches across multiple continents but still features a heavy American influence and expanded on the idea with the media at large on Wednesday.

“My dream scenario is a world tour, with the proviso that corporate America has to remain a big part of it all. Saudi Arabia, too. That’s just basic economics,” McIlroy said to Golf Digest. “But there is an untapped commercial opportunity out there. Investors always want to make a return on their money. Revenues at the PGA Tour right now are about $2.3 billion. So how do we get that number up to four or six? To me, it is by looking outward. They need to think internationally and spread their wings a bit. I’ve been banging that drum for a while.”

“I think informally, we sort of have most of that global schedule, anyway,” McIlroy added Wednesday at Dubai Creek Resort. “We still need to make sure that the biggest tournaments are in America; obviously that’s the biggest place that we play. But also trying to elevate some of the other tournaments around the world: You know, trying to, Middle East, Continental Europe, U.K. and Ireland, the Far East, whether it be Japan, Korea, Singapore, Hong Kong, Australia, South Africa. I mean, you’ve got a lot of different opportunities there.”

“I think everyone needs to start thinking more globally around it but globally in a holistic way but not really like this tour, that tour and another tour,” he continued. “What is the best structure for elite professional golf, the top 70 to 100 guys in the world and what would that look like, especially if the game is going to look different going forward and everything is on the table. I just think it’s worth having that conversation.”

McIlroy argued the importance of the United States’ involvement given the size and brand of the PGA Tour but admitted the Tour’s large market has kept others from thriving.

“If we can sort of all, start to work together a little bit more, I think a rising tide lifts all ships or all boats, and that’s the mindset that I would, I guess, come to that thinking of what the best thing is for professional golf,” he said.

In a recent interview, McIlroy noted how LIV Golf has “exposed flaws in the system” by taking advantage of players as independent contractors, making it impossible for the Tour to financially compete and difficult for companies to stomach the rising costs of tournament sponsorship. His solution is simple: player contracts.

“When you look at different sports and the media landscape and how much these media companies are paying for sporting events, I think you have to be able to guarantee them the product that they are paying for,” McIlroy explained. “So in my opinion, yeah, I would say that people would have to be contracted and sign up to a certain number of events every year; that the sponsors and media partners know that the guys they want to be there are going to be.”

The SparkNotes version of McIlroy’s plan would put a heavy emphasis on classic U.S. events and national opens, including the Australian Open, with stops in the likes of Singapore, Hong Kong and Japan as well as popular European countries. Maybe even the Middle East.

“Throw in the four majors and you have a brilliant schedule for the top 70-100 guys, whatever the number is,” he said. “We’d have, say, a 22-event schedule. That would look pretty good to me.”

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