Jay Monahan has a new ally in his battle with LIV Golf. Although the PGA Tour is in talks with the PIF for a peace treaty, the Saudi-funded league has snatched away one of Jay Monahan’s most faithful loyalists. Apparently, there are some tough spots in the ongoing peace talks and both sides are bolstering their leverage. Monahan did this earlier, roping in big-money investors who could be a part of the $3B framework agreement between PIF, the PGA Tour, and the DP World Tour.

The ongoing negotiation talks with PGAT have brought the attention of investors to a sports entity they now deem an ‘undervalued asset.’ But the negotiations have proven more complicated than that. At first, Fenway Sports Group, Acron, and Endeavor’s names were thrown into the mix. Reportedly, the Tour found a new ally in the Strategic Sports Group, who as multiple reports suggest, can rival the Saudi offer. As the deadline approaches without any positive news from any side, will PGA Tour and PIF continue to walk the warpath?

Does SSG have the financial firepower to one-up PIF?

Strategic Sports Group, is a consortium of multiple big-money investors led by Fenway Sports Group, owner of Boston Red Sox (MLB), Pittsburgh Penguins (NHL), Liverpool Football Club (EPL), and Boston Common Golf in the Tiger Woods and Rory McIlroy’s futuristic TGL. Earlier the group was slated to invest as a solo stakeholder in the Tour. 

Arthur Blank, (Atlanta Falcons); Wyc Grousbeck (Boston Celtics), Marc Lasry (Milwaukee Bucks), Tom Ricketts (Chicago Cubs), Cohen Private Ventures (New York Mets), and Gerry Cardinale, of RedBird Capital (AC Milan) are also the bigwigs in the grouping.

Trending

‘Rattled’ Scottie Scheffler Reveals Police Officer’s Unsettling Question That Left Him Speechless

May 17, 2024 10:07 PM EDT

Hours After Crucial Bodycam Report, Scottie Scheffler’s Arrest Case Takes a Riveting Turn

May 19, 2024 03:11 PM EDT

Scottie Scheffler Case: Controversial Update Against Arresting Officer Sparks Massive Outrage in Golf World

May 18, 2024 06:49 PM EDT

PGA Tour Rumors: Unproven Scottie Scheffler Felony Charge Pushes Louisville Police Department in Hot Water

May 18, 2024 10:00 AM EDT

How Much Would Erica Stoll Receive from Rory McIlroy in Divorce Settlement?

May 16, 2024 05:18 AM EDT

Get instantly notified of the hottest Golf stories via Google! Click on Follow Us and Tap the Blue Star.

Follow Us

Reportedly, the Tour is in final talks with the group. In an official statement, the Tour said, “(W)e unanimously agreed to further negotiate with Strategic Sports Group (SSG), a consortium of U.S.-based professional sports team investors led by Fenway Sports Group … we also anticipate advancing our negotiations with PIF in the weeks to come.” Recently, Tiger Woods, who is also a member of the Tour Policy Board overseeing the negotiations, clarified that they are looking into the prospects that align with the Tour’s vision. 

The total worth of the SSG is in the ballpark of $50B, which is way more than the $3B in the framework agreement. However, the Jon Rahm saga is quite likely to have increased the stake of PIF in the negotiations. Let’s also not forget, that the PIF is worth more than $700B.  So, what will happen if the negotiations fail?

PIF has a dream bigger than a stake in the PGA Tour

Jay Monahan and the golf world have been so wrapped up with LIV Golf, that they stand to lose sight of the bigger picture. Because ‘conquering’ the PGA Tour and by extension, the men’s circuit, is just another pitstop for the Saudi Sovereign Fund because LIV Golf is an avenue for the Middle Eastern country’s grip over the sports world. 

Just about a month after the initial framework agreement, Al Hilal, a Saudi soccer club backed by PIF’s riches, offered French World Cup winner Kylian Mbappe, $1B. A shocking amount of money, that even drew NBA legends LeBron James and Giannis Antetokounmpo to quip on X (formerly Twitter). Why not! The Greek Freak agreed to a $186M contract extension with Milwaukee Bucks this year, roughly a fifth of what PIF offered to the French International. Additionally, in 2021, the Saudi Sovereign Fund also acquired an 80% stake in Newcastle United, which currently sits at the no. 6th position in the EPL table.

On the other hand, PIF already held stakes in McLaren, the car manufacturer and Formula 1 team owner, before selling it to Bahrin’s state investment fund. But that was part of a broader plan. PIF was willing to buy F1 from Liberty Media, for a reported $20B – $5B more than what Bloomberg estimated as the current value of the series. However, Liberty Media, who was a potential investor in the PGA Tour, rejected the proposal. 

LIV Golf’s emergence also serves as a reminder that other established ‘elite’ tours are also vulnerable if a LIV Golf-like disruptive force emerges in their sport. In fact, the Association of Tennis Professionals, the top tier of men’s tennis, has also held talks with PIF for future investments. 

PIF’s rapid investment in golf and other sports for the past few years shows their ‘serious’ commitment to expanding the Kingdom’s sports empire. PIF is armed with $700B of riches and as their absurd proposals to global sports icons show, Jon Rahm might not be the last big name to shift allegiance. Moreover, his reported $600M contract might not be the decimal point where PIF would stop. 

On top of that, the Tour has bled roughly $20M in lawsuits, and litigations against PIF. If the deal fails, the legal jousting will resume and PIF will come with all guns blazing.

Despite Their $53.4Billion Slap to LIV Golf, PGA Tour Possibly In Trouble As Major PIF Reports Emerge

So a deal is in both parties’ interests. The only roadblock on their way will be to figure out how they can integrate the Tour with PIF’s 54-hole shotgun format. But as the defending Masters Champion said he expected PIF to take his advice and make some adjustments. By 2025, the LIV Golf format might also go through some welcome change that makes the Tour more in line with Traditional golf.

The ball is in Jay Monahan’s court, and where he decides to knock his next shot will determine the future. Regardless of SSG’s support, the PGA Tour should brace for more impact should the $3B merger announcement go south.

Watch this Story: LIV Golf Takes Huge Leap Towards Success; With or Without Jon Rahm’s $600M Signing