Tiger Woods of the US and Rory McIlroy of Northern Eire stroll to the eleventh fairway throughout a observe spherical previous to the 2023 Masters Event at Augusta Nationwide Golf Membership on April 03, 2023 in Augusta, Georgia.
Ross Kinnaird | Getty Photographs Sport | Getty Photographs
The PGA Tour stated Tuesday it would start to supply skilled gamers direct fairness possession within the new firm that will likely be fashioned after it reaches a cope with traders, based on an inside memo obtained by CNBC.
The tour is at present in negotiations working towards an funding settlement with Saudi Arabia’s Public Funding Fund, which owns LIV Golf, and the DP World Tour. The talks with PIF and the DP World Tour stay the tour’s “high precedence,” PGA Tour Commissioner Jay Monahan stated in Tuesday’s memo.
The perimeters reached a framework settlement earlier this yr to mix the enterprise pursuits of the golf leagues. The event triggered anger and criticism, together with from gamers similar to Rory McIlroy. The Senate held hearings to research claims that the deal was meant to extend Saudi Arabia’s affect within the U.S. by means of sports activities investments.
The brand new program outlined in Tuesday’s memo is the newest transfer to align the pursuits of PGA Tour gamers with the enterprise itself.
“On the level we safe exterior funding, this might be a singular providing in skilled sports activities, as no different league grants its gamers/members direct fairness possession within the league’s enterprise,” wrote. “We acknowledge – as do the entire potential minority traders who’re in dialogue with us – that the PGA TOUR will likely be stronger with our gamers extra carefully aligned with the business success of the enterprise.”
Monahan additionally wrote that the Tour’s settlement with PIF and DP World Tour has generated curiosity from different traders. The board is at present reviewing non-public traders’ bids and can maintain negotiating to pick out finalists, he added.
Final week, Fenway Sports activities Group Chairman Tom Werner acknowledged that the corporate has held talks with the PGA Tour, however declined to remark with any additional particulars. There’s been hypothesis that Fenway may give you a suggestion that tops the Saudis’ bid.