THREE OFF THE TEE

Exciting news from the world of professional golf: Tiger Woods and the Strategic Sports Group (SSG) have finalized a $3 billion investment in the PGA Tour. This groundbreaking deal, which was announced on February 01, 2024, marks a significant milestone for the sport and its players.

The investment, valued at $1.5 billion with a potential to grow to $3 billion, is based on a $12.3 billion valuation of the PGA Tour. This substantial sum was determined after a thorough evaluation of the Tour’s operations, including its television presentation, courses, and player compensation.

Over 20 unsolicited investment bids were submitted, totaling $20 billion, highlighting the high level of interest in the PGA Tour from wealthy investors. As part of the deal, close to 200 PGA Tour members will become equity holders in the newly established for-profit company, PGA Tour Enterprises. Their ownership will be based on their career accomplishments, recent achievements, and Tour status, with grants vesting over time.

In addition to the initial investment, $600 million in recurring equity grants will be distributed to players starting in 2025. Furthermore, the SSG investment guarantees player compensation in the form of tournament purses for five years. This commitment to the well-being of players is a testament to the importance of this investment.

A 13-person board will oversee the new company, with seven Tour pros ensuring player-majority control. This structure will allow players to have a significant voice in shaping the future of the PGA Tour and its operations.

This exciting news comes after months of rumors and speculation. The investment by Tiger Woods and the SSG marks a new chapter in the history of the PGA Tour, one that promises growth, stability, and a bright future for professional golf.