PGA Tour makes deal worth up to $3 bn to create for-profit entity

MIAMI: The US PGA Tour announced a deal worth up to $3 billion with a group of billionaire sports team owners on Wednesday to create a for-profit entity, PGA Tour Enterprises.

The commercial venture partnership with Strategic Sports Group (SSG), under the PGA Tour´s control, offers nearly 200 PGA Tour players the chance to become equity holders in the new company launched Wednesday.

SSG includes Fenway Sports Group, owners of English football´s Liverpool FC, MLB´s Boston Red Sox and the NHL´s Pittsburgh Penguins, plus MLB New York Mets owner Steven Cohen and NFL Atlanta Falcons and MLS Atlanta United owner Arthur Blank.

Under the program, players would collectively access more than $1.5 billion in grants that vest over time with SSG investing an initial $1.5 billion and the possibility of investing another $1.5 billion later.

The money would maximize revenue to benefit players as well as enhance worldwide golf growth opportunities, said three-time major winner Jordan Spieth, among the PGA Policy Board player members who unanimously backed the deal.

“You talk about the funding, but really the strategies that they can have in navigating that space will be very important.” Player equity grants, according to a statement by the PGA Tour, “will be based on career accomplishments, recent achievements, future participation and services and PGA Tour membership status and grants are only available to qualified PGA Tour players.”