PGA Attracting Red Sox And WWE Owners As Possible Alternative To Saudi Investment

Forbes Business Breaking PGA Attracting Red Sox And WWE Owners As Possible Alternative To Saudi Investment William Skipworth Forbes Staff I am a breaking news reporter. Following Sep 28, 2023, 06:12pm EDT | Press play to listen to this article! Got it! Share to Facebook Share to Twitter Share to Linkedin Topline A group including Endeavor Group Holdings (owner of the WWE) and Fenway Sports Group (owner of the Boston Red Sox) is in the preliminary stages of potentially investing in the PGA Tour, providing the golf association with an alternative to its pending deal with Saudi Arabia’s Public Investment Fund and LIV Golf, a source familiar with the situation told Forbes . A general view of the PGA Tour logo during the PGA – Travelers Championship at TPC River Highlands .

. . [+] on June 21, 2023 in Cromwell, Connecticut.

(Photo by Rich Graessle/Icon Sportswire via Getty Images) Icon Sportswire via Getty Images Key Facts The deal, which also includes KKR & Co. co-founder Henry Kravis, could provide the PGA Tour with an alternative option to the controversial deal it made in June to merge with Saudi Arabia-backed LIV Golf, the source said. This could happen in the event that U.

S. regulators strike down the deal or the players vote it down. Forbes reported Wednesday that the PGA Tour was looking for U.

S. investors as a backup in case the merger falls through. This potential investment could also allow the PGA Tour to simply reject the LIV Golf merger deal, though a spokesperson for the tour told Forbes its “focus continues to be on finalizing an agreement with the Public Investment Fund and the DP World Tour,” but also noted that they’d received “unsolicited” offers.

The investment could also happen even if the merger goes through, and the source emphasized that negotiations are still early and the deal could evolve in a number of ways. Forbes has reached out to Endeavor Group Holdings and Fenway Sports Group for comment; Bloomberg first reported the news Thursday. Key Background With billions of dollars from the Saudi government-controlled Public Investment Fund, LIV Golf emerged as a direct competitor to the PGA Tour in 2022.

Using that money, the golf startup was able to lure some of the PGA Tour’s best-known golfers, including Phil Mickelson and Dustin Johnson, kicking off a messy legal fight between the two. Eventually, the PGA Tour forbade its golfers from participating in LIV Golf events, forcing players to pick between the two. Throughout it all, LIV Golf was accused of being a “sportswashing” operation by the Saudi government, which critics argued was using the golf league to distract from its human rights abuses.

This came to an end in June when the two suddenly announced a merger . That deal has been heavily scrutinized, including by politicians in Washington. Sen.

Richard Blumenthal (D-Conn. ) told a group of PGA executives the deal gives the Saudi government “financial dominance” because they “control the purse strings” during a hearing in July. Tangent This also appears to be an attempt by Endeavor and Fenway to expand their portfolios in the sports industry.

Endeavor, which is based in Beverly Hills, California, just completed its takeover of the popular wrestling label WWE. And Fenway Sports Group, which is run in part by founder John Henry, is based in Boston and commands a massive sports portfolio, owning properties like Liverpool FC, New England Sports Network and Nascar’s Roush Fenway Racing, in addition to its marquee team: the Boston Red Sox. A deal with the PGA Tour would add to its burgeoning golf investments.

It was a partner in the PGA Tour’s Deutsche Bank Championship, and in August partnered with the Ladies Professional Golf Association. It also invested in TMRW Sports, which is launching a new Tiger Woods -backed golf league called TGL , and owns the TGL Boston team. Forbes Valuation We estimate Fenway Sports Group Founder John Henry to be worth $5.

1 billion, and we estimate KKR & Co. co-founder Henry Kravis to be worth $8. 9 billion.

Further Reading Henry Kravis, Endeavor, Fenway Eye PGA Tour Deal to Rival Saudi Arabia’s (Bloomberg) PGA Tour And Saudi-Backed LIV Golf Agree To Sudden Merger (Forbes) The PGA Tour Wants U. S. Money As Insurance For Opposition Of Saudi LIV Golf Takeover (Forbes) Saudi Public Investment Fund Reports $11 Billion In 2022 Losses—But Sports Investments Might Not Be To Blame (Forbes) Tiger Woods Joins PGA Tour Board Ahead Of Saudi Merger—Expresses Confidence In Maligned PGA Commissioner Jay Monahan (Forbes) Follow me on Twitter or LinkedIn .

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