Strategic Sports Group’s investment in the PGA Tour comes as the professional golf organization’s merger with the Saudi-backed LIV Golf is up in the air.
A U.S. consortium has agreed to invest up to $3 billion into the PGA Tour, the professional golf organization announced on Wednesday.
Under the terms of the deal, the investor, Strategic Sports Group, will become a minority owner in PGA Tour enterprises, the for-profit entity of the PGA Tour. The group will make an initial investment of $1.5 billion in the tour. It is unclear when and how the up to $1.5 billion in additional funding will go to the PGA Tour.
The agreement comes as the organization tries to plot out its future in the face of competition from the upstart LIV Golf and a proposed merger with the Saudi-funded league. The Tour confirmed progress on its ongoing negotiations with PIF on a potential future investment and its discussions with the DP World Tour.
“Today marks an important moment for the PGA Tour and fans of golf across the world,” PGA Tour Commissioner Jay Monahan said.
The deal received unanimous support from the PGA Tour player directors.
As part of the new agreement with Strategic Sports Group, the Tour said nearly 200 players will have the opportunity to receive equity participation in the Tour the league said.
