According to sources, the PGA Tour and the Saudi Public Investment Fund (PIF) are close to reaching an agreement. bloomberg business report.
The two sides have been trying to reach an agreement for nearly 18 months, which could result in PIF acquiring a 6% stake in PGA Tour Enterprises, the PGA Tour's new commercial entity. is high. The investment could value PGA Tour Enterprises at about $12 billion, as PIF is likely to match the inflow of capital the tour received from Strategic Sports Group (SSG) earlier this year. SSG, a group of sports owners and billionaires, committed $1.5 billion to the tour in February. SSG plans to inject an additional $1.5 billion into the tour's new commercial arm over the next few years, bringing the total investment to $3 billion.
But what does this mean for the structure of professional golf?
PIF-funded LIV Golf isn’t going anywhere anytime soon. PIF has invested billions of dollars in LIV, and some teams currently have sponsorship deals. This enabled PIF to generate some returns on its initial investment of over $1 billion.
LIV has also hired a new CEO to replace the controversial Greg Norman and continues to plan events around the world into 2025 and beyond. The league is also home to four of the most popular players on the planet: Phil Mickelson, Jon Rahm, Brooks Koepka and current U.S. Open champion Bryson DeChambeau.
We have to assume that this investment will include some crossover between PGA Tour and LIV Golf players. TV ratings for the 2024 tour had a dismal year, likely due to LIV poaching a number of stars in recent years. Even with Scottie Scheffler's dominance, the Tour was unable to make year-over-year gains from 2023 to 2024. Plus, YouTube golf and amateur gaming are stronger than ever. Amateur players prefer playing games rather than watching big stars compete in events. YouTube now allows content creators like DeChambeau to create unique videos that viewers can watch at any time of the day. PGA Tour live golf doesn't have that.
Perhaps the LIV golfer will receive a pardon, paving the way for him to play in some high-profile PGA Tour events. Rahm said he misses playing at Torrey Pines and TPC Scottsdale every year. His return to these events would give each one a much-needed boost. DeChambeau, perhaps playing at the Arnold Palmer Invitational, wowed the golf world in 2021 with an otherworldly drive over a large lake on the par-5 sixth hole. But the crux of the issue is how LIV players will be received. While some rushed to leave, PGA Tour participants also threw barbs. Still, hostilities between the two sides appear to have eased in recent months, paving the way for some form of unification. Still, the tour shouldn't open its arms completely to LIV players, considering they helped threaten the PGA Tour's existence. They also won't be eligible to receive any part of the PGA Tour's new equity program because they received millions of dollars to join LIV in the first place.
Instead, the PGA Tour must allow LIV players to compete in four PGA Tour events per year. The four events with LIV Golfers will allow golf fans to see the world's best players compete side-by-side more often. With the PGA Tour and LIV Pros playing together in four majors, minus a few DP players, it's now 100% more realistic. world tour event.
Speaking of the DP World Tour, PGA Tour pros should be able to hop on to LIV and play some events there. Same as Rory McIlroy and Billy Horschel playing sporadically on the DP World Tour throughout the fall season.
Perhaps LIV will also backload calendars in the future. With events taking place around the world in the fall, there could be plenty of opportunity for overseas players to play while the PGA Tour is more or less in the middle of its offseason. Additionally, this fall doesn't bode well for professional golf in the United States. This time of year, fans are transfixed by the NFL, college football, and baseball postseasons, as well as the beginning of the NBA, NHL, and college basketball seasons.
Whatever happens, the agreement between PIF and the PGA Tour is not as substantive as many expect. This is simply an investment to give PIF a seat at the touring table, which was LIV's ultimate goal when it first launched. All PIF wanted to do was try to diversify its $700 billion assets and investment portfolio among sports organizations around the world. They did just that, defending the definition of “sportswash” while sending professional golf into a state of rupture.
At least golf seems to be slowly returning to normal.
Jack Mirko is a golf staff writer for SB Nation's Playing Through. Be sure to check it out @_PlayingThrough Cover more golf. You can follow him on Twitter @jack_milko In the same way.
