The Palm Beach Gardens campus may soon be home to a new sports tech company, which is part of Tiger Woods’s.
TMRW Sports, a company, will create an enclosed arena in which celebrities, top golfers and top players of other sports can play fast-moving virtual and in-person golf. TMRW Sports has created TGL, a high-tech league for golf in partnership with PGA Tour.
Woods and his partners, Rory McIlroy, pro golfer, and Mike McCarley (former NBC sports executive), signed a lease agreement in November. This will allow them to use nearly 11 acres of PBSC land for up 15 years.
TMRW Sports, however, will not rent the land and can use the parking lots at no cost.
Woods’ company instead will make a variety of contributions to the college over the term. These contributions can be described as “in-kind rent” in the lease.
Ava Parker, President of PBSC, stated that the college has estimated this in-kind rental to be worth more then $9 million over five year.
Parker stated that TMRW Sports will provide students with exposure to careers within the technology, media, and sports industries.
Parker stated, “I like that we’re going t bring opportunities to students, who may not have thought about a profession in sports, technology and entertainment.” “We will show them real-world experience… that could lead us to a career path.”
A 10.67-acre PBSC field located on RCA Boulevard on the south side college’s Palm Beach Gardens campus will be transformed into a multipurpose facility that spans 3 acres by 2024. McCarley, chief executive of TMRW Sports, stated that the arena, with 1,500 seats, will be used as an anchor for the new type of golf competition. It could hold up to 25 events annually.
McCarley stated that TMRW Sports has assembled an advisory and investor team, which includes business leaders in sports media, finance and technology. They believe in TMRW Sports’ vision to use technology to develop progressive approaches to sport.
The investors include Justin Timberlake, NBA star Stephen Curry, and Tony Romo (retired NFL quarterback). Investors include Andy Murray and Serena Williams, professional tennis champions.
Parker: PBSC will gain worldwide attention in deal
Nov. 1: The PBSC board of trustees voted in favor of a five year lease and two extensions to the lease for five years.
TMRW Sports will provide guest speakers, internships for students and full-time and part-time jobs in hospitality and technology for students under the agreement. TMRW Sports will also help to create technology and sports curriculums.
Parker stated that PBSC has also seen a significant increase in student education through the promotion of state colleges.
TMRW Sports has been required to mention Palm Beach State College at least twice in the broadcasts, use PBSC’s name in social media posts, and create news releases and videos that highlight PBSC’s location.
Parker stated that this kind of exposure is “a big deal” as “the marketing and branding increase our national recognition.”
Palm Beach County has a growing academic community. There are several branch campuses of universities located outside the county, which have either been built or planned to be built within the county. For example, the University of Florida has plans to build a West Palm Beach campus for its graduate students, while Nova Southeastern University has a campus located in Palm Beach Gardens.
Angela Harrington, PBSC spokeswoman, stated that Woods’ affiliation with Woods’ tech-sports business is consistent with the college’s vision statement. This statement also outlines the college’s goal to be an innovative academic leader by “dynamic partnerships.”
Ken Johnson, an economist at Florida Atlantic University in Boca Raton said that colleges and universities are increasingly forming partnerships with local communities. He predicts that there will be more affiliations.
Johnson stated, “You’re going see more of it.”
Harrington stated that Woods’ affiliation is more valuable than a standard lease, as the agreement contains other provisions.
Harrington pointed out that PBSC will not be incurring any costs related to the project but that the college will make more than $1.5million in unspecified improvements on the 11-acre property. McCarley estimates that the facility will be worth anywhere from $30 million to $50million at the end the lease term.
Harrington stated that the project will be a catalyst to develop new academic programs, which will increase college revenue streams and boost philanthropic efforts.
Millionaires should be able to use land owned by the state for free
However, some real estate professionals questioned the Tiger Woods venture’s land-free deal.
PBSC will not be paid cash rent for the property. The lease also stated that TMRW cannot live up to its in-kind rent promises. PBSC is prohibited from suing TMRW for monetary damages.
Harrington stated that nonprofits cannot recoup funds from in-kind donations.
She said that the college can only sue TMRW Sports to have a judge force it to fulfill its end of the agreement. The lease can also be terminated by PBSC.
Harrington stated in an email that the monetary value for in-kind services can be perceived differently by different stakeholders and “so they don’t have a fixed dollar figure.”
“The in-kind services provided to students, college and community may not be quantified by dollars or cents. Harrington stated that the lease reflects the college’s services, which are of primary importance to PBSC regardless of any monetary figures.
Peter Reed, a commercial real estate broker, said that Palm Beach Gardens’ in-town property is quite valuable.
For a potential total sales value of $20,000,000, he estimated that the land’s worth is approximately $2 million per acre. Reed estimated that the land’s market rent could be worth approximately $1.5 million per year based on this valuation.
According to a document that was provided to The Palm Beach Post, a September 2022 appraisal of Calloway & Price estimated the land to be worth only $5.9million.
Reed expressed disappointment that Woods, who resides on Jupiter Island, as well as McIlroy who resides in Jupiter, were unwilling to pay any rent for the prime location in the heart Palm Beach Gardens.
Reed, the managing principal of Commercial Florida Realty Services Juno Beach, stated that it seemed like a great deal for celebrities and golfers.
Reed asked, “How can it be that you live here and don’t need to pay state income taxes, and you want your virtual course for free?”
Reed stated that a percentage rent or money from concessions would have been a fair deal for PBSC if TMRW Sports were not willing to pay monthly rent to lease the land. This was while the venue gained momentum.
Reed said that even though TMRW Sports was a new company, he predicted that golf enthusiasts, including Woods’ passionate fan base, will flock to the arena to witness Woods in action.
Reed stated that “Golf has not been proven unproven.”
Parker stated that PBSC will not be paid any cash rent from TMRW to use the land. However, the college will still get the venue once the lease term expires or terminates.
Johnson of FAU stated that the fact that PBSC will keep the arena and all improvements made to it makes the deal attractive to the college. Johnson stated that if Johnson is sitting at PBSC’s seat, he thinks someday he will get the building and all its technology.
McCarley stated that the arena’s value could reach $50 million due to the technology infrastructure that will be installed.
Construction is expected to begin in 2023 and be completed by 2024.
This innovative version of a tournament golf game works
Six teams of three will be playing at the TMRW Sports venue. They will include celebrities and top PGA Tour players. According to the company, Woods and McIlroy have committed to competing.
Simulators will be available for tee shots and approach shots. In-person play will be possible with putting and chipping greens.
The two-hour events will be telecast on Monday nights by a network that is still to be determined. At least 15 events are planned for PBSC. Additional playoff and championship games are also planned.
McCarley stated that eventually, sports betting might be possible on the games.
Although tickets will be sold to the public at events, the price of the tickets is not yet known. PBSC will be entitled to eight tickets per year for every publicly-ticketed event as part of the lease agreement.
PBSC is not like other public-private partnership, president says
Parker of PBSC acknowledged that partnerships between public entities and private entities do not always work as planned.
After Scripps officials promised that a “biotech village”, consisting of jobs and companies, would be constructed on the Palm Beach Gardens property, 70 acres of public and private land were leased to Scripps Research Institute in 2006. It is located next to Alton, which is on PGA Boulevard.
After a 15-year agreement between Scripps and the county was up, in addition to the $310 million Scripps received form the state and $269 millions from the county, the land was to be transferred to Scripps. The county staff stated that Scripps had met the requirements to create 545 jobs in the county and remain there for 15 years to be eligible to transfer the land. However, the biotech village was never built.
The 70-acre parcel was sold to Scripps for $1 in 2021, according to the agreement with the county. The land is now under the control of UF Health as part of Scripps Florida’s acquisition.
Parker stated that unlike the Scripps agreement, the PBSC-TMRW Sports agreement will not only keep the land in PBSC’s possession but will also allow TMRW Sports to develop the land for no cost to the college.
Parker stated that the property was vacant for many years and that PBSC had wanted to develop it, but they didn’t have enough money.
Parker stated that he is happy with the support he received and the way they have valued it. “It was fair for the institution with the dollars going into improvements to the land and support for our students.”
Kelly Smallridge, President of the Business Development Board, agreed.
After the company had rejected other potential sites, Palm Beach County’s chief of business recruitment helped TMRW Sports locate the PBSC land. Some of these sites were located in other parts of the country and state.
Smallridge stated that the BDB recommended the PBSC site for the Woods group as it was aware of the college’s desire to use the vacant field.
Smallridge stated that the uniqueness of this affiliation is the educational opportunities available to students who are interested in exploring technology careers.
Smallridge stated that the tech industry is an important component of county’s growth. This has been mainly due to the recent influx of Northeast-based finance companies.
She stated that the BDB was not involved in the drafting the lease between TMRW Sports affiliates and PBSC.
Alexandra Clough, a business writer for the Palm Beach Post, is part of USA TODAY Florida Network. [email protected]. Twitter: @acloughpbp. Help support our journalism. Sign up today.
