Liverpool Owners Consider Investment in PGA Tour
Liverpool owners Fenway Sports Group (FSG) and US group Endeavor, owners of WWE, are reportedly among those considering a rival investment into the PGA Tour. The potential move comes in response to a deal announced in June that would combine the PGA Tour, the DP World Tour and LIV Golf as a global entity under Saudi Arabia’s Public Investment Fund (PIF).
Public Investment Fund’s Inroads into World Sport
PIF is also the owner of Newcastle along with four of the Saudi Pro League’s leading clubs, and has been accused of “sportswashing” as it makes its inroads into world sport. According to Bloomberg, FSG and Endeavor are among the American investors exploring an alternative deal for the PGA Tour. KKR & Co. co-founder Henry Kravis is also said to be considering investment.
Endeavor recently completed its takeover of World Wrestling Entertainment (WWE) as part of a merger with the UFC, under the umbrella of TKO Group Holdings Inc. It remains to be seen whether those groups would combine their investment, though it is even speculated that they could “end up partnering with PIF.”
The History of the PGA Tour
The PGA Tour was founded in 1929 as organiser of golfing tours across the US and North America. Its potential merger with the DP World Tour and LIV Golf has been hugely controversial, with US lawmakers vocal about their opposition to the deal. This is despite assurances by PGA representatives in July that the Public Investment Fund would be only a minority investor in the combined entity.
Financial Terms and Regulatory Concerns
A transaction remains a long way from completion, with the sides yet to agree to financial terms, and make further concessions to address regulatory concerns. Under the terms of its deal with the PGA Tour, PIF has the exclusive right to further invest in the new entity, including a right of first refusal on any capital invested.
Liverpool Owners’ Previous Investments in Golf
If FSG became involved, it would not be their first investment into golf. Fenway Sports Management is linked with the PGA Tour’s Deutsche Bank Championship and the Ladies PGA. FSG also purchased a team in TMRW Sports’ TGL, the virtual golfing league backed by Tiger Woods and Rory McIlroy, in June.
Famously, the ownership group also counts the baseball franchise the Boston Red Sox among its assets, as well as NHL team the Pittsburgh Penguins, while they own a 50 percent stake in NASCAR team Roush Fenway Keselowski Racing.
Conclusion
The potential investment by Liverpool owners FSG and US group Endeavor into the PGA Tour is an interesting development in response to a deal announced in June that would combine the PGA Tour, the DP World Tour and LIV Golf as a global entity under Saudi Arabia’s Public Investment Fund. With US lawmakers vocal about their opposition to the deal, it remains to be seen whether FSG and Endeavor will combine their investment or “end up partnering with PIF”.