The PGA Tour sent a late-Friday update to its members in an attempt to maintain loyalty during a time of turmoil and change.
Tiger Woods who was appointed to the board in August, Charley Hoffman, Peter Malnati and Patrick Cantlay as well as Jordan Spieth who replaced Rory McIlroy (alongside Adam Scott who will take over Hoffman in 2024), signed a letter of two pages that addressed the “speculation” in our sport and updated Tour’s ongoing discussions with Saudi Arabia Public Investment Fund. The framework agreement has a deadline of the end the year.
The memo stated that “Since Tiger became a member of the policy board in August, the player directors are doing all they can to make sure the PGA Tour thrives for many decades to come.” We have learned a great deal, and are encouraged by the progress made on many fronts.
Without going into details, Jay Monahan mentioned earlier this week that he will be meeting PIF Governor Yasir al-Rumayyan in the next week. He also noted that “the deadline is a firm target.”
Monahan, who spoke at the New York Times DealBook Summit on Wednesday in New York City, acknowledged that Tour was in talks with several parties about possible investment in a for-profit entity.
“I will be with Yasir in the next week and we are continuing our discussions.” “I think it’s fairly well-known that there are a number of other parties interested that we’re also pressing to think about.”
The Tour is also in talks with Fenway Sports Group and other interested parties. Bloomberg News reported that KKR & Co., an investment firm, had also been in discussions with the Tour. However this week they were no longer being considered.
Monahan stated that a possible agreement with PIF could include at least one co-investor.
Monahan stated that it was important for players to move from being independent contractors and become owners.
In the player director’s memo, it was stated that “These are not traditional private equity groups, as has been reported. They are rather multi-decade focused, strategic partners,” according to the memo. Each group is optimistic regarding the growth opportunities of the PGA Tour, and their ability drive growth.
The memo went on to say: “We agreed to work towards a consensus before voting any proposal which creates or contemplates a third-party investor.”
The memo reiterated Monahan’s comments that there are “equity grant” opportunities available for PGA Tour players.
In the final graph of the memorandum, the players directors acknowledge that they “know it has been a confusing and frustrating year” and invite feedback and questions. In the closing paragraph, it is stated that they are “determined to get this right.”
