LIV Golf’s Phil Mickelson takes aim at the PGA Tour after learning it plans to offer its members an equity stake in its new for-profit entity.
Phil Mickelson has hit out at the PGA Tour after a leaked memo from the circuit has highlighted the potential for player equity in its new for-profit entity known as PGA Tour Enterprises.
In light of the PGA Tour’s ongoing framework agreement with the Saudi Public Investment Fund, the PGA Tour held its final Policy Board meeting of the year at its HQ on Tuesday November 14.
Tiger Woods, who was named a player director earlier this season, was called in for the “significant board meeting”.
PGA Tour commissioner Jay Monahan led the meeting and he confirmed in the memo that was sent out to members that negotiations towards a definitive agreement with the Saudi Public Investment Fund (PIF) and the DP World Tour remain a “priority”.
According to the memo sent out to PGA Tour players, which you can read in full below, Monahan penned:
“Progress has been deliberate given the complex nature of the potential agreement, and we will keep you apprised of the progress, with continued input and direction from your Player Directors and player advisor Colin Neville.
“Additionally, as you know, the Framework Agreement with PIF and the DP World Tour generated unsolicited – although not surprising – interest from numerous outside potential investors.
“The opportunity to potentially participate in the transformative growth of the PGA Tour for the first time brought forth dozens of inbound prospects, which were all initially vetted by the Tour’s investment bank, Allen & Company.
“In the Policy Board meeting, we reviewed these remaining bids with the Independent Directors and Player Directors – with input from Allen & Co. and The Raine Group – and agreed to continue the negotiation process in order to select the final minority investor(s) in a timely manner.”
Monahan’s memo then also addressed potential for player equity in its new for-profit entity, PGA Tour Enterprises.
The memo read:
“Tour management has designed a program that would align the interests of our members with the commercial business of the Tour via direct equity ownership in PGA Tour Enterprises.
At the point we secure outside investment, this would be a unique offering in professional sports, as no other league grants its players/members direct equity ownership in the league’s business.
“We recognize – as do all of the prospective minority investors who are in dialogue with us – that the PGA Tour will be stronger with our players more closely aligned with the commercial success of the business.”
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