Billionaires Steve Cohen and Marc Lasry will be a part of a historical investment into the PGA Tour, according to Bloomberg.
Strategic Sports Group, a collective of investors and firms that’s fronted by Fenway Sports Group — which owns the Boston Red Sox, Pittsburgh Penguins and Liverpool Football Club — is expected to make an initial investment into PGA Tour Enterprises for $3 billion, the report reads.
The Saudi Public Investment Fund (PIF), which backs LIV Golf, could potentially make an additional investment if negotiations between the PGA Tour and LIV reach an agreement after the initial word of a merger.
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This investment, however, may not involve the PIF, as talks regarding how the merger of LIV Golf and the PGA Tour continue to take place.
Strategic Sports Group entered final negotiations to be a co-investor in December, and it included Cohen, the New York Mets’ owner, and Lasry, who once co-owned the Milwaukee Bucks.
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Cohen’s involvement with Strategic Sports Group goes through his Cohen Private Ventures office.
The deal could value PGA Tour Enterprises at about $12 billion, one person with knowledge of the deal told Bloomberg.
Delays have come in this deal, as figuring out how much control PGA Tour players will have within this merged league remains in question.
The PGA Tour, despite publicly trading barbs with LIV Golf on a player and executive front, agreed to a surprise merger with the PIF and the DP World Tour, Europe’s pro golf league, in June. This came after LIV Golf sued the PGA Tour for antitrust violations after banning LIV players from competing in its major tournaments among other quarrels.
Negotiations haven’t gone smooth, though, especially as the U.S. government got involved due to their concerns about a possible takeover from the PIF. Meanwhile, LIV continues to entice some of the best golfers on tour to join their ranks by dishing out millions of guaranteed dollars to players like Jon Rahm, the No. 3-ranked golfer in the world.
"Sportswashing," a term used to describe an individual or government participating in sports to improve reputation, is one that many are using when talking about the Saudi-backed league. The kingdom has been called out for its unethical human rights behavior.
Perhaps U.S. investors in this new entity golf is trying to create could make a bridge for both sides to get closer in negotiations.
