The PGA Tour announced a substantial financial and strategic investment on Wednesday, though not the long-awaited arrangement with the LIV Golf League.

In the meantime, the PGA Tour will partner with private equity firm Strategic Sports Group (SSG) to launch PGA Tour Enterprises, a for-profit venture run by the tour.

SSG is comprised of a cohort of American sports owners, led by Fenway Sports Group and including Atlanta Falcons owner Arthur Blank and New York Mets owner Steve Cohen (LeBron James is an investor in FSG).

SSG will initially infuse the new venture with $1.5 billion at a valuation of $12 billion, with another $1.5 billion potentially coming down the road.

PGA Tour Commissioner Jay Monahan will serve as CEO of PGA Tour Enterprises. The PGA Tour Players Directors board — featuring Tiger Woods, Jordan Spieth, and Patrick Cantlay, among others — approved of the agreement.

“Today marks an important moment for the PGA TOUR and fans of golf across the world,” Monahan said in a statement. “By making PGA TOUR members owners of their league, we strengthen the collective investment of our players in the success of the PGA TOUR. Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible – and unmatched – competitive atmosphere created by our players, tournaments and partners. And partnering with SSG – a group with extensive experience and investment across sports, media and entertainment – will enhance our organization’s ability to make the sport more rewarding for players, tournaments, fans and partners.”

The deal leaves room for a co-investment from the Saudi-backed Public Investment Fund (PIF). PIF finances and operates LIV, which begins its third season this weekend. World No. 3 Jon Rahm will make his LIV debut in Mayakoba, helming a team that includes the latest high-profile defector, world No. 16 Tyrell Hatton. It's unknown what role PIF will play in PGA Tour Enterprises.

Back in June, Monahan and PIF Chairman Yasir Al-Rumayyan blew the quarter-zips off folks in the worlds of golf, business, and geopolitics by announcing the framework for a partnership that would combine the PGA Tour, LIV, and the DP World Tour (formerly the European Tour) under one banner. Those negotiations, which were extended past the Dec. 31 deadline, remain ongoing, though any accord will undergo severe regulatory scrutiny.

Ahead of this weekend's AT&T Pebble Beach Pro-Am — the first “Signature Event” of 2024 — Rory McIlroy said players who return from LIV should get off scot-free.

“If people still have eligibility on this tour and they want to come back and play or you want to try and do something, let them come back. I think it's hard to punish people. I don't think there should be a punishment.”

“We're potentially about to do a deal with PIF, who owns the large majority of LIV, and hopefully seeing things come back together here at some point. Obviously, I changed my tune because I see where golf is and I see that having a diminished PGA Tour and having a diminished LIV Tour or anything else is bad for both parties.”

According to Wednesday's announcement, nearly 200 PGA Tour members will gain access to a collective $1.5 billion in equity in PGA Tour Enterprises — an effort to repay players who forewent the LIV bag. Active members will also be made eligible to receive grants, which will vest over time, based on their participation and achievements on the golf course.

“We were proud to vote in unanimous support of this historic partnership between PGA TOUR Enterprises and SSG,” said the Player Directors. “It was incredibly important for us to create opportunities for the players of today and in the future to be more invested in their organization, both financially and strategically. This not only further strengthens the TOUR from a business perspective, but it also encourages the players to be fully invested in continuing to deliver – and further enhance – the best in golf to our fans. We are looking forward to this next chapter and an even brighter future.”