PGA Tour plans to continue negotiations with Saudi Arabian Public Investment Fund and Strategic Sports Group
The PGA Tour policy board informed members Sunday evening of its plans to further negotiate with Strategic Sports Group, a collection of U.S. sports team investors. In addition to unanimously voting to continue conversations with SSG, the board plans to advance negotiations with the Saudi Arabian Public Investment Fund in the upcoming weeks as the Dec. 31 deadline set forth by the June 6 framework agreement draws closer.
“Over the past several days, we have met to thoroughly review, discuss and debate the extremely strong proposals submitted by a final set of outside investors,” the PGA Tour policy board sent in a memo to membership. “Yesterday, we unanimously agreed to further negotiate with Strategic Sports Group (SSG), a consortium of U.S.-based professional sports team investors led by Fenway Sports Group … we also anticipate advancing our negotiations with PIF in the weeks to come. Further, the DP World Tour will continue to be an important part of the process as we build toward PGA Tour Enterprises.”
Cohen Private Ventures, Gerry Cadinale, Arthur Blank and Mark Attansio make up the rest of the SSG along with Fenway Sports Group. The Boston-based company owns the Boston Red Sox, Pittsburgh Penguins and Liverpool Football Club and has been linked to investing in PGA Tour Enterprises ever since commissioner Jay Monahan opened the conversation to outside parties. Before joining the PGA Tour, Monahan served as an executive vice president at Fenway Sports Group.
“Please know that while we can’t get into more details at this time, we are very confident in an eventual, positive outcome for all players and the PGA Tour as a while,” the board said in the memo.
The update comes just days after LIV Golf had its most significant acquisition to date when it signed world No. 3 Jon Rahm. The Spaniard’s departure has reopened the door for additional players to follow suit with the likes of Tony Finau and Tyrrell Hatton rumored to be in discussions with the 54-hole team circuit.
The PIF’s recruitment of the two-time major champion coincides with the two leagues rushing towards the year-end deadline to come to terms to house commercial operations under a new for-profit entity dubbed PGA Tour Enterprises. Before this memo, it had been widely reported the two parties remained far apart with PIF governor Yasir Al-Rumayyan holding the upper hand in negotiations given his bankroll and ability to sign big names to astronomical contracts. Monahan and Al-Rumayyan are scheduled to meet next week.
It also comes following a rather tumultuous week for the PGA Tour. Not only did the league lose one of its biggest stars in Rahm, but it also lost a long-time sponsor in Wells Fargo. The financial giant has hosted the Charlotte stop since 2011 but was unwilling to bear the additional costs as the PGA Tour looks for its sponsors to handle a portion of the tournament purse in the future.
