PGA announces $3 billion investment deal, opportunity for player equity

One month removed from a missed deadline, the PGA Tour is making a "strategic" move in hopes of still going forward with its planned merger with LIV Golf.

On Wednesday, the PGA announced a new $3 billion investment in its planned for-profit arm, PGA Tour Enterprises. The investment comes from the Strategic Sports Group, a consortium of wealthy individuals already embedded in the sports world - John Henry and Tom Werner of the Boston Red Sox, Steve Cohen of the New York Mets, Arthur Blank of the Atlanta Falcons, Wyc Grousbeck of the Boston Celtics and Mark Attanasio of the Milwaukee Brewers. 

The cash infusion will come in two parts, with an initial $1.5 billion investment following the other half at a later time. According to ESPN, Fenway Sports Group, which is leading SSG after expressing interest in the PGA in late 2023, will act as an advisor for PGA Tour Enterprises. This deal also allows for a co-investor, which is likely where Public Investment Fund from Saudi Arabia comes into play. 

Perhaps the most important detail relates to the players themselves as they will have a chance to earn equity into PGA Tour Enterprises. Per ESPN's Mark Schlabach:

"The PGA Tour said nearly 200 of its members would have access to a "first-of-its-kind" program that would allow them to become equity holders in PGA Tour Enterprises. The members would collectively have access to more than $1.5 billion in equity grants, which will vest over time. The size of grants will be determined by a tiered system based on "career accomplishments, recent achievements, future participation and services and PGA Tour membership status."
"The equity program would be available only to qualified PGA Tour players."

The ambitious December 31 deadline came and went at the end of 2023, however the PGA, LIV and DP World Tour (also known as the European Tour) said that talks were being extended into the new year. In an early January column on Golf.com, James Colgan wrote that the PIF had viewed the SSG's interest as a leverage play against the merger, and that LIV's poaching of reigning Masters champion Jon Rahm may have complicated what had already been delicate talks.

All of that said, the SSG's involvement in golf could be major help for the PGA as it still aims to merge with LIV and the DP World Tour. The planned merger drew fiery ire from all corners of the golf world as well as the political one due to ongoing claims of sportswashing against Saudi Arabia through PIF. However, having an investment from a group of well-known American businessmen and sports owners could alleviate some concerns that the PGA would end up awash in "blood money," as many critics have said. The primary merger plans still need to go through regulatory approval from the U.S. Department of Justice and other agencies.