In February 2024, the PGA Tour made a major move, securing a $3 billion investment from Strategic Sports Group (SSG), led by Fenway Sports Group (FSG), the same group behind Liverpool Football Club and the Boston Red Sox. With nearly 200 players set to receive over $1.5 billion in equity, the deal promised to reshape the Tour and offer new financial opportunities through a for-profit venture called PGA Tour Enterprises. Jay Monahan, the PGA Tour’s commissioner, took on a new role as part of this partnership, marking a significant shift in the Tour’s leadership and structure.

The deal also raised questions about the future of the Saudi Public Investment Fund (PIF) framework agreement and its long-term impact on the sport. Fast forward to 2025, while the initial excitement was palpable, there now seems to be some tension brewing, with a few issues surfacing after just one year. It appears the grand vision might be facing some challenges.

In early 2025, the PGA Tour Headquarters faced significant layoffs, a rare occurrence for the organization. In the latest episode of No Laying Up Podcast, Neil Schuster and Randy were asked about the huge layoff as a next move or a big wrinkle in the world of pro golf. But others within the organization argue it’s part of a larger restructuring process, aimed at making significant changes. “Even if things got bloated at the PGA Tour,” said Randy, “that’s not the fault of the people who got laid off. It continues to suck for them to be the people to pay the cost, but second, how did it get like that?” The question remains: “Who’s the leadership that’s being fired? Who’s the leadership that’s being changed?” There’s a sense of frustration that the same people who may have helped create the problem aren’t being held accountable.

As the host pointed out, “PGA Tour does not have big sweeping layoffs very frequently,” making this move seem like “a next kind of wrinkle in the world of pro golf.” While the reasoning behind these layoffs remains unclear, the impact on the staff is undeniable.

It’s a tough situation for those affected, and no one wants to make light of it. However, the layoffs have raised questions about the Tour’s new investors, Strategic Sports Group (SSG). Reports have indicated that SSG wants to cut tens of millions in payroll over the next year, suggesting that more cuts could be coming. But there’s a deeper issue that’s troubling: “How does Jay Monahan still have a freaking job along with some of these other executives?” The frustration is palpable, especially when looking at how things have unfolded.

The optics of this situation don’t sit well with many. While the PGA Tour cuts jobs, it has also spent large sums on new facilities. “People on the content side will just open up this studio with for hundreds of millions of dollars,” said Neil, referring to a high-end facility built by the Tour. “It’s a gorgeous facility, and then it’s like, okay… I don’t know.” This mix of layoffs and lavish spending raises questions about priorities and leadership.

“The optics stink,” they added. “Obviously, new leadership and new investors are going to want to make some cuts, but does anybody want to do the hard cuts? Does anybody actually want to address the issue because it’s at the top? It’s not like…” The same person continued, addressing the broader product concerns: “It also comes back to the week-to-week product… Do you want to watch a bunch of guys hit it 330 yards, wedge it, and try to shoot 59?” There’s a lot of work left to do on the product itself, which adds to the frustration.

“The layoffs are easier to understand if you laid off the leadership or some leadership, and then they come in and bring their people with them,” said the host. But right now, “This is like step three. What step one is, is like, let’s get a fresh set of eyes on this.” When looking at both sides—inside and outside the organization—it’s hard not to connect the dots. “You just got a bunch of new private equity investors and then you cut a bunch of jobs,” they said. “It’s hard not to tie those two things together.”

“If you’re telling me things are bloated and overstuffed, it’s like, well, it’s the lifelong kind of day-to-day workers that you’re getting rid of,” they pointed out. “What are you talking about?” The anger is clear, leaving a pretty bad taste in people’s mouths. But as another person summed up, this whole situation feels more like ‘palace intrigue’, rather than real change happening from the top down.

Well, it was not just the insiders questioning the deal. Jay Monahan was questioned about the expenditures earlier as well.

SSG questioned Jay Monahan about the money

In February, one of the stakeholders was eager to find out what the Tour was doing with that hefty sum. Rory McIlroy, a recent addition to the PGA Tour policy board, playfully raised the question during a press conference, asking what the Tour plans to do with the $1.5 billion it secured on January 31, 2024. “What are we going to do with the $1.5 billion?” McIlroy asked. “What are we going to invest in? How are we going to grow this thing?” As an equity holder in the new venture, McIlroy is naturally invested in the success of the business. “I’m basically like an LP (limited partner) in a fund,” McIlroy explained. “So, what are we doing?”

Later, PGA Tour Commissioner Jay Monahan addressed McIlroy’s inquiry during a media scrum, offering an intriguing response. “I would say that we’ve spent a lot of time and are currently in discussions about some opportunities where we will deploy capital,” Monahan said. “I’m not in a position to share any of those details just yet.” Monahan also noted that PGA Tour Enterprises has formed an investment committee, which includes several members of the SSG team, and they are actively evaluating opportunities to strengthen the PGA Tour with complementary deals. “Suffice to say, I think we’ll have some news on that front in the coming months,” Monahan teased. “It hasn’t been touched tangibly in a big way yet. We haven’t announced any big deals, but that doesn’t mean we’re not talking about them.”

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