“We now have very savvy and experienced stakeholders” – Max Homa is ‘optimistic’ about the PGA Tour and SSG’s $3,000,000,000 deal
Max Homa is optimistic about the PGA Tour and Strategic Sports Group's (SSG) whopping $3 billion deal. The Tour Commissioner, Jay Monahan, announced the deal on Wednesday, January 31. He released a memo to the players citing that SSG would make an initial investment of $1.5 billion into PGA Tour enterprises for the potential growth of the company. Interestingly, the PGA Tour players also hold equity shares in PGA Tour Enterprises.
Max Homa expressed his optimism about the deal in a recent post on X (formerly Twitter). The American golfer said in his post that the Tour has more "savvy and experienced" stakeholders who can advance the sport's general development and make it "better for the fans."
The 2023 Farmers Insurance Open winner took to his X account to write:
"I know everyone is sick of hearing about how much more money golfers are getting. My optimism lies in the main point of this which is we now have very savvy and experienced stakeholders who have a lot of incentive to improve the product creatively and make it better for the fans."
A fan inquired about the possible advantages, that the viewers might experience from the agreement, by jumping into the comments section. In response, Homa stated that these organizations would make financial investments and would like people to watch sports to receive a return. This would force them to put in more effort to enhance the game and make it entertaining for fans.
"Because this investment group isn’t just donating money. They want to make money. So they need people to watch golf to make money. So they’d better do a damn good job to make this more watchable and entertaining for the fans," Homa tweeted.
It is interesting to note that the PGA Tour unveiled the new deal with SSG on the same date Saudi-backed LIV Golf announced its 2024 roster, headlined by Jon Rahm, Tyrrell Hatton, Adrian Meronk and Lucas Herbert, who have recently confirmed their move to the series.
The PGA Tour has been in a negotiation deal with Saudi Arabia's Public Investment Fund, the financial backbone of LIV, for a while now. The potential merger was scheduled to be finalized at the end of December 2023, but it was postponed to a later date. Reportedly, the merger could be finalized by the end of March 2024.
As the Tour has already secured a deal with SSG and the deal with PIF is ongoing, fans have eyes on the new changes the PGA Tour could have in 2024.
"We strengthen the collective investment of our players"- PGA Tour commissioner Jay Monahan on the deal with SSG
The new deal between the PGA Tour and SSG comes with benefits for the players on the circuit, as it will give them equity shares in the company.
Tour commissioner Jay Monahan highlighted the same in his memo to the players about the deal with SSG. Monahan said that by giving Tour golfers equity shares, they have strengthened the "collective investment of players." He said (via The Athletic):
"By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour. Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible — and unmatched — competitive atmosphere created by our players, tournaments and partners.”
This week, the PGA Tour will have its second Signature Event, the AT&T Pebble Beach Pro-Am tournament, which will run parallel to LIV Golf's season-opening Mayakoba event.