The outgoing leader of the European Tour, Keith Pelley has responded to the PGA Tour’s partnership with the Strategic Sports Group (SSG). After the DP World Tour pro Pablo Larrazabal questioned where the European Tour stands with the PGA Tour moving forward with SSG, Pelley sent a letter to its members to provide some clarity.
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The letter from the leadership read, “Negotiations involving ourselves, the PGA Tour, and the PIF are still on-going, and I believe this announcement gives continued momentum to those discussions as well as being an important step to possible overall alignments between all four entities, SSG included.” The letter clears the air about doubts from pros who might get the idea that the merger with PIF had been adjourned.
That means, after the SSG invested $3 billion in the PGA Tour to start the PGA Tour enterprise, another $3 billion would be invested by the PIF to withhold all three leagues under one umbrella, though the LIV Golf will remain a stand-alone entity. The letter also intended to state that even after SSG’s investment, DPWT’s alliance with the PGA Tour remains “firmly placed.” The letter also gives His Excellency, Yasir Al-Rumayyan and Greg Norman high hopes as the deal was thought to be dissolved.
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The PGA Tour would be moving upward with a whopping $6 billion investment for the future of the league. The for-profit entity would now have contributions from the player’s side as well in terms of equity shareholders.
What the SSG-PGA Tour deal means for pros
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The whopping $3 billion partnership means that the prize purse for the event will eventually increase and there will be more revenue streams for the Tour to maximize every year. Moreover, the 200 members of the PGA Tour will get the opportunity to take part in the equity of the for-profit enterprise.
The project is supposed to give out $1.5 billion in equity for the PGA Tour members. The equity would be based on various factors. As the memo shared states, “based on career accomplishments, recent achievements, future participation and services, and PGA Tour membership status, and grants are only available to qualified PGA Tour players”.
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After The recent turn of events by the PGA Tour, the New York Post reported that Al-Rumayyan was quite unhappy, although the disclosed letter does highlight that the PIF-PGA Tour may still be reached. What will be the future of PIF moving forward? Stay tuned to find out!
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