Major U.S. investors, including Ari Emanuel's Endeavor Group (EDR). and Fenway Sports Group, are contemplating investment in the PGA Tour. This comes as an alternative to the currently pending deal with Saudi Arabia's Public Investment Fund (PIF). Additionally, KKR (KKR) co-founder Henry Kravis is also among those considering this investment opportunity. Though some of these U.S. entities might prefer to spearhead a deal, there's speculation they might partner with PIF.
The PGA Tour had previously announced a surprising merger with the PIF and DP World Tour in June, leading to a dramatic contest in the world of golf. The move by Saudi Arabia-backed LIV Golf to attract top players with substantial amounts had set the stage for intense competition. The PIF deal, which has met opposition from U.S. lawmakers, would see the PIF as only a minority investor in the PGA.
Endeavor, boasting a market value of around $9.5 billion, has been amplifying its focus on sports, evident in its recent acquisition of World Wrestling Entertainment Inc. Meanwhile, Fenway Sports Group, with its established presence in the sports industry, counts notable figures like LeBron James among its backers and has historic affiliations with golf events.
The PGA Tour's decision to integrate with the PIF and DP World Tour had taken many by surprise, especially with Saudi Arabia's LIV Golf trying to outpace the traditional PGA Tour. Amid the heated scenario, the U.S. lawmakers' concerns and the PGA's assurances about the PIF's minority stake have complicated the potential deal's progression.
