Tiger Woods secures ownership in $3 billion PGA Tour Enterprises deal

BY Preta Peace Namasaba February 12, 2024 9:52 AM EDT
Tiger Woods. Photo credit: Tiger Woods

Tiger Woods has secured ownership in a historic $3 billion PGA Tour Enterprises deal. The golf legend and other PGA Tour players will become equity holders in the newly established for-profit company. The approach is unprecedented in professional sports and is projected to reshape the golf landscape.

The significant moment was as a result of an investment deal between PGA Tour and Strategic Sports Group (SSG), a consortium of professional sports team owners. The investor group includes the owners of the New York Mets, the Chicago Cubs, the Atlanta Falcons, and Fenway Sports Group, among others. SSG has put forward an initial $1.5 billion to maximize revenue for players and enhance golf on a global scale. The other half will go to the PGA Tour business.

“Just wanted to say thank you, SSG, for believing in us and believing in our sport. Believing in the potential growth that we could enjoy together. Golf is an amazing sport. It has allowed communities to heal and grow. And we, as a team, are going to offer that according to what we believe is the true compensation and meritocracy that our sport has been built upon for all these years,” Tiger Woods said of the deal’s potential impact.

Consequently, SSG will have a minority stake in the business and the PGA Tour will be the majority shareholder. The deal was unanimously approved by the six-member PGA Tour board which includes Tiger Woods. The additional investment has an option to secure an additional $3 billion in funding from the Public Investment Fund.

The equity partly serves as a reward for players who stayed loyal to the PGA Tour despite tremendous contract offers from competitors. It will be distributed to 193 players in four categories beginning in March. Only PGA Tour members are eligible, with the size of each player’s ownership assessed using career accomplishments, recent achievements and Tour status. Top stars such as Tiger Woods will reap from $750 million Group 1 which accounts for 80 percent of the total amount. From 2025 to 2030, an additional $600 million will be distributed via recurring grants.

“As has been described earlier, as the Tour grows, we grow. So the more we invest into the Tour, the more we get the benefits of it. Which has never been — it’s never happened in sports history. So we’re the first. Exciting for me to be able to be part of that,” Tiger said of the historic investment deal.

PGA Tour Enterprises was founded last year following a framework agreement between the PGA Tour, PIF and DP World Tour to house their commercial operations. The for-profit enterprise is valued at $12 million and has received over two dozen investment bids worth a total of $20 billion. The PGA Tour is the organizer of professional golf tours in the United States and North America.