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Imago

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Imago

The PGA Tour is trying hard to make a profit! But since Brian Rolapp’s arrival, they have also been focused on making the best use of it. The Tour’s strategy has been focused on utilizing its funds to increase the competition and marketability of the product. And that has seen a major shift in its core structure.

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As reported by Sean Zak from GOLF.com, the PGA Tour was valued at $12.9 billion when the Strategic Sports Group decided to invest in it. However, the latest financial reports revealed that they had suffered at $451 million loss. That has already raised a lot of concerns.

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What’s more alarming is how the valuation is distributed. Out of the total valuation, about a quarter comes from the SSG. The Strategic Sports Group funded the PGA Tour with a $3 billion investment. That’s a little less than 25% of the Tour’s value. Moreover, big entities like Tiger Woods also own a stake in the Tour. Rolapp & Co. also has major TV deals with CBS and NBC that further take away from their valuation.

External stakeholders have a huge impact on the price fluctuations of the product. While neither of the PGA Tour’s partners is risk-driven, it still puts the product at a certain level of risk. And that’s not where the issues end

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The PGA Tour’s stake in the DP World Tour also has a huge influence on its valuation. The Tour acquired a 15% stake in its European partners back in November 2020. Both Tours are interlinked not only on the course but also financially. They also co-host events annually and exchange talent to promote them.

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Moreover, the PGA Tour has also loaned funds to the DP World Tour often. According to Zak, Jay Monahan & Co. have come to the rescue whenever European Tour events have fallen short on purses.

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If that wasn’t enough, the PGA Tour has another deadline they are rushing towards as they prepare for big changes in the upcoming season.

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Big changes coming from Brian Rolapp & Co. next season

2027 will be the year of change in the PGA Tour. We’re not only talking about the reduced schedule that Tiger Woods hinted at during his meeting with the players.

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There is another deadline Brian Rolapp & Co. need to meet in 2027. By January 30 next year, they will have to utilize the funds the Strategic Sports Group has invested in the PGA Tour. That’s less than a year away from now.

Rolapp has already hinted at the Tour schedule starting after the Super Bowl from next season onwards. Considering the deadline and the possible schedule change, the PGA Tour might see a lot of changes that are difficult to anticipate at the moment.

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