PGA finalizes $3B agreement with Strategic Sports Group

The PGA Tour and Strategic Sports Group have finalized a $3 billion deal to create a new for-profit operation called PGA Tour Enterprises.

Strategic Sports Group will be the minority investor in the new entity, while the PGA Tour remains the majority shareholder. SSG members include several sports executives: Boston Red Sox chairman Tom Werner and owner John Henry; Atlanta Falcons owner Arthur Blank; chairman/owner of the Milwaukee Brewers Mark Attanasio; Chicago Cubs chairman Tom Ricketts; New York Mets owner Steve Cohen; and Wyc Grousbeck, co-owner and governor of the Boston Celtics.

Even with this deal in place, the PGA is still negotiating to finalize something on merging with Saudi Arabia’s Public Investment Fund and the DP World Tour. According to sources to ESPN, the deal could bring in billions of dollars to PGA Tour Enterprises.

Over the last few years, many golfers have defected from the PGA Tour and over to Saudi-backed LIV Golf. The PGA originally took the stance that if any golfer left, they would be banned for a year from PGA-backed competition. There are a few golfers who think that should no longer be the case, including Rory McIlroy, who won the Hero Dubai Desert Classic in the DP World Tour on Jan. 20.

“I think it’s hard to punish people,” said McIlroy at the AT&T Pebble Beach Pro-Am. “I don’t think there should be a punishment. Obviously, I’ve changed my tune on that because I see where golf is and I see that having a diminished PGA Tour and having a diminished LIV Tour or anything else is bad for both parties. It would be much better being together and moving forward together for the good of the game. That’s my opinion of it. So to me, the faster that we can all get back together and start to play and start to have the strongest fields possible, I think, is great for golf.”

Recent names who have joined LIV are England’s Tyrrell Hatton, who signed a $63 million deal to join John Rahm’s team on Tuesday. Rahm, the reigning Master’s winner, left the PGA in December. Adrian Meronk and Lucas Herbert joined last week, and a few more are expected to sign in the coming weeks.

“Guys made choices to go and play LIV; guys made choices to stay [on the PGA Tour],” McIlroy said. “If people still have eligibility on this tour and want to come back and play, or you want to try and do something, let them come back.”