The PGA Tour is working to increase its negotiations with Saudi Arabia’s Public Funding Fund to kind a brand new for-profit entity, tour commissioner Jay Monahan informed golfers in a memo Sunday.
The stunning alliance, which was introduced June 6, had a framework settlement that was scheduled to run out Sunday. Monahan, nonetheless, stated within the memo that the edges are working to increase negotiations into 2024 based mostly on progress made within the talks.
Monahan stated the PGA Tour was close to finalizing a deal with Strategic Sports activities Group (SSG), a consortium of billionaire crew house owners that features Tom Werner and John Henry (Boston Red Sox), Arthur Clean (Atlanta Falcons) and Wyc Grousbeck (Boston Celtics), and that the PGA Tour hopes to have SSG, the PIF and DP World Tour as minority buyers within the new for-profit, PGA Tour Enterprises.
“As , the [PGA Tour policy board] unanimously directed administration to pursue unique negotiations with SSG,” Monahan wrote within the memo, a duplicate of which was obtained by ESPN. “I’m happy to report that we now have made significant progress and have supplied SSG with the due diligence data they requested. As we transfer ahead in our discussions, we’re targeted on the finalization of phrases and drafts of crucial paperwork.”
ESPN beforehand reported that the take care of SSG would infuse greater than $3 billion into PGA Tour Enterprises, in response to sources. If a deal is reached with each SSG and the PIF, greater than $7 billion may be invested into PGA Tour Enterprises, which might mix the industrial belongings of the PGA Tour, DP World Tour and PIF, together with the rival LIV Golf League.
Underneath the phrases of the agreements, the PGA Tour would retain management of the brand new for-profit entity.
“Our purpose for 2024 is to succeed in agreements with SSG, PIF and the DP World Tour, bringing them on board as minority co-investors in PGA Tour Enterprises,” Monahan wrote. “These partnerships will permit us to unify, innovate and spend money on the sport for the good thing about gamers, followers and sponsors.”
The potential offers would stabilize a fractured sport that has been stung by participant defections, a federal antitrust lawsuit and skyrocketing operational prices because the rival circuits have battled for the perfect golfers on the planet over the previous two years.
The LIV Golf League poached Spain’s Jon Rahm on Dec. 7 with a multiyear contract price greater than $300 million, in response to sources. Sources informed ESPN that LIV Golf is actively recruiting different PGA Tour gamers to fill out a brand new crew that can be captained by Rahm in the course of the 2024 season.