Fenway Sports Group eyes $3,500,000,000 investment in PGA Tour's new for-profit venture with potential $12,000,000,000 valuation - Reports
The merger framework agreement between the PGA Tour and Saudi Arabian PIF is due in the next three weeks. After the shock merger was announced in June earlier this year, talks between both entities have been ongoing to reach a consensus for the newer, bigger for-profit entity that they hope to form.
Amidst all the chaos, Fenway Sports Group has now reportedly entered into negotiations with the PGA Tour for a stake in the upcoming for-profit golf entity. Fenway Sports Group is expected to invest a total of $3.5 billion in the entity provisionally known as the PGA Tour Enterprises, with a total valuation of $12 billion. The talks and terms of the deal have been undisclosed, reminiscent of most decisions made this year in pro golf.
Webb Simpson, a member of the PGA Tour Policy Board, stated according to the New York Times:
“I’ve learned that any great board, you need disagreement in order to get to the best solution, and we’ve had many disagreements this year — even the players have had disagreements. But we’re trying to all get to a better place.”
PGA Tour advances talks with Fenway Sports Group amidst increasing scrutiny and deadlines
The PGAT reportedly narrowed its choice down to Fenway Sports Group for external investment amidst the talks with the Saudi Arabian PIF. The new entity will be an amalgamation of the PGAT, LIV Golf and the DP World Tour.
According to Sky Sports, the PGA Tour Policy Board wrote to players in an email:
"We also anticipate advancing our negotiations with PIF in the weeks to come. Please know that while we can't get into more details at this time, we are very confident in an eventual, positive outcome for all players and the PGA Tour as a whole."
This news comes just days after World No. 3 Jon Rahm decided to make a shocking shift to the LIV Golf Series in a big blow to the PGA Tour. Needless to say, the future of golf is currently in a gray area, especially for the players.