With merger negotiations not progressing as fans initially anticipated, The PGA Tour is clearly focused on growing on its own. That is, with a little help from some of the biggest names in sports and entertainment. Actor and former governor Arnold Schwarzenegger, Olympic skiing legend Lindsey Vonn and blockbuster movie star Chris Pratt are joining face of the NBA LeBron James and iconic rapper Drake in a massive undertaking.
They are all investing in PGA Tour Enterprises, per PGATour.com, which the golf league is heading up courtesy of a partnership with the Strategic Sports Group (SSG). The goal of this monumental venture is to help generate massive revenue for players and the PGA as a whole.
The SSG, which is led by Fenway Sports Group and is comprised of mainly sports franchise owners, has agreed to invest $3 billion, with $1.5 billion already committed. The formation of Enterprises will enable approximately 200 Tour members to become equity holders. Growth will not be achieved by only funneling in money, though. Marketing and branding will be crucial for the PGA to take the next step.
That is where the aforementioned megastars will be especially valuable. Casual golf fans might be more likely to engage and invest in the product if someone with universal appeal like Arnold Schwarzenegger or Drake is promoting the sport. These celebrities are personally investing into PGA Tour Enterprises, which is going to be tackling all commercial activity related to the league.
Although it offers a different format and vibe, LIV Golf's major selling point has always been the eye-popping financial commitments it makes to its golfers. Now that the PGA Tour is doing what it can to reward some of the men who remained loyal during this golf war, it could gain significant leverage in all future negotiations.
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