PGA Tour golfers will benefit from equity of more than £1.1bn after the circuit announced an injection of up to $3bn by a group of investors which includes the owners of Liverpool FC.
The payouts will be based on “career accomplishments, recent achievements, future participation and services” and will only be available to qualified PGA Tour players, a memo to players read.
The PGA Tour’s deal with Strategic Sports Group (SSG) also allows for a future “co-investment” from Saudi Arabia’s Public Investment Fund (PIF), which bankrolls LIV Golf.
But that will be subject to “all necessary regulatory approvals”, amid scrutiny from the US Department of Justice and the Senate due to antitrust concerns. The PGA Tour said its strategic alliance with the DP World Tour “remains a focus”.
“As close partners, the DP World Tour was included in the original framework discussions and agreement announced last year and the Tour is in active discussions on how to best work together for the continued benefit of all,” a statement read.
PGA Tour player directors Tiger Woods, Patrick Cantlay, Peter Malnati, Adam Scott and Webb Simpson voted unanimously in favour of the deal between the newly launched PGA Tour Enterprises and SSG, a consortium of US-based investors which includes Boston Red Sox and Liverpool owner John Henry.
“It was incredibly important for us to create opportunities for the players of today and in the future to be more invested in their organisation, both financially and strategically,” they said in a joint statement.
“This not only further strengthens the Tour from a business perspective, but it also encourages the players to be fully invested in continuing to deliver – and further enhance – the best in golf to our fans.
“We are looking forward to this next chapter and an even brighter future.”
SSG are making an initial investment of $1.5bn (£1.2bn), which could increase to up to $3bn (£2.4bn).
SSG manager Henry said: “We greatly appreciate the opportunity to join PGA Tour players in this important next phase of the PGA Tour’s evolution.
“Our enthusiasm for this new venture stems from a very deep respect for this remarkable game and a firm belief in the expansive growth potential of the PGA Tour.”
Commissioner Jay Monahan, who will also be CEO of PGA Tour Enterprises, said: “By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the tour.
“Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible – and unmatched – competitive atmosphere created by our players, tournaments and partners.”
PA