Jordan Spieth said Wednesday he believes the PGA Tour may no longer need to sign a deal with Saudi Arabia’s Public Investment Fund (PIF) after forming a new partnership with Strategic Sports Group (SSG). said.
The deal with SSG could inject $3 billion into the newly formed PGA Tour Enterprise.
Spieth, 30, who joined the PGA Tour’s policy committee following Rory McIlroy’s resignation, said he would be open to an agreement that benefits the PIF and all parties, but this is now said he doesn’t think it’s necessary. A new contract has been signed.
“I don’t think it’s necessary,” Spieth said before the start of Thursday’s AT&T Pebble Beach Pro-Am. “We have a strategic partner and the idea is that the PGA Tour can do nothing and borrow options from other investors to move forward with the way we operate today.”
The PGA Tour said in a news release that the agreement does not preclude future collaboration with PIF, as SSG allows co-investments with funds, and is subject to all necessary regulatory approvals. Ta.
Spieth also said the deal could lead to future partnerships with PIF and LIV Golf, but “we don’t know if, how, or when that will happen.”
The biggest part of the deal is the fact that SSG’s involvement allows players to become equity partners on the PGA Tour.
SSG’s funding will give 200 PGA Tour members access to a “first-of-its-kind” program that allows them to become equity owners in the for-profit PGA Tour Enterprises, according to a release.
In total, members will have access to more than $1.5 billion in equity grants, which vest over time.
The size of the grant will be determined by a tiered system based on “career performance, recent accomplishments, future participation and service, and PGA Tour membership status.”
“As part of this new partnership, we will launch a player equity program for current and future players, who will have an interest of more than $1.5 billion,” said PGA Tour Commissioner Jay Monahan. PGA Tour Commissioner Jay Monahan said at the “Just Listen” conference. phone.
“PGA Tour members will become equity members of PGA Tour Enterprises. This will strengthen the connection between players and the PGA Tour, while also creating a shared vision for the unity of the organization.”
The deal was attractive to Spieth from a player fairness perspective.
“The players are owners now,” Spieth said. “So not only do they profit from the tour, but now that they own the stock, they want to promote the tour themselves. They want to make the product better themselves. Not that it hasn’t happened before, but you can directly benefit from owning the work.”
McIlroy said Tuesday that he believes LIV players should be allowed to return to the new PGA Tour without penalty if they are still eligible.
However, Spieth said this view was not a unified consensus among the players and that the players remained concerned about entering into any kind of partnership with the PIF.
“I asked a lot of players and had a lot of talks with a lot of players in the last few months,” Spieth said. “That’s Rory’s view. You can name some people who have the same point of view, you can name some people who have a completely opposite point of view. So if the players are going to talk about it… It’s definitely complicated how I feel.”
SSG includes: Steve Cohen (Mets), Tom Warner and John Henry (Red Sox), Mark Attanasio (Brewers), Arthur Blank (Falcons), Wick Grousbeck (Celtics), Tom Ricketts (Cubs) ).It is made up of groups including owners such as others.
The group will become a minority investor in PGA Tour Enterprises, and the PGA Tour will remain a majority shareholder.
Mr Monaghan also did not comment further on the current status of PIF.
On June 6, the PGA Tour and PIF signed a Framework Agreement to combine the companies’ commercial assets, including LIV Golf.
The agreement was originally set for a Dec. 31 deadline, but was extended as both sides continued to work out final details.
It’s unclear whether or how the PGA Tour’s contract with SSG will affect negotiations.
“The agreement with SSG does not affect ongoing negotiations with PIF,” Monaghan said. “SSG is aware of and supports the continued dialogue with PIF. We will continue to advance the dialogue as long as it favors our future and the Policy Board.”
The deal still leaves golf fans without the possibility of seeing the world’s top players compete, outside of the majors.
Will that change? stay tuned.
