PGA Tour – Fenway Deal Updates: $900M for Players as LIV Golf Gets Snubbed

After months of waiting, it looks like the PGA Tour is finally taking a step forward! The merger talks between the PGA Tour and PIF were thought to enter a cold bag when no new updates were coming forward. However, the PGA Tour has entered into a deal, but not with PIF. Instead, an agreement has been signed with Strategic Sports Group.

The details of the new agreement are finally coming to light, with the investment running to $3 billion on a $12 billion valuation. Furthermore, the PGA Tour players will be getting their rewards too. The players will get $900 million in equity shares. These will be given out to 180 players with higher ranks getting more.

Moreover, this also comes as a blow to the PIF deal, which is subject to regulatory issues and could take some time to materialize,

This has left the PIF merger in doubt. However, it looks like the PGA Tour is still in talks with the Saudis. But the deal with Strategic Sports Group has given the traditional league a huge step up.

What’s next for the PGA Tour?

When news about the Jay Monahan-headed league entering talks with SSG came forward, critics thought it to be a signal of rift with PIF. Naturally, the questions will arise as the two have yet to reach an agreement even after the December 31 deadline.

Meanwhile, the traditional league has found an ally in SSG. The Tour’s policy board approved this deal on January 30 with Jay Monahan revealing the details today in a conference call.

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With this deal, the PGA Tour, which is a non-profit organization, will launch a for-profit entity called the PGA Tour Enterprises. This new entity will manage all the commercial interests of the traditional league. But the interesting aspect of this new entity is the $900 million equity players will be getting.

This move will be a first from a sports league, something that could become a trend later. However, this move also looks like a last-ditch attempt to keep players away from the Saudi-backed league.

LIV Golf has become infamous for poaching players with lucrative offers. With Jay Monahan’s side now offering them incentives, players could opt to stick with the traditional league too.

With the PIF and the PGA Tour still in talks, it will be interesting to see how the dynamics change now. Maybe the Saudis can become an important stakeholder in PGAT’s new entity or they can provide a better alternative. Only time will tell what the two golf bodies decide.

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