In an effort to keep the membership loyal during a tumultuous time of change, the PGA Tour player directors sent an update to Tour members late on Friday.
Tiger Woods, who joined the board on Aug. 1, Charley Hoffman, Peter Malnati, Patrick Cantlay, Webb Simpson and Jordan Spieth, who recently replaced Rory McIlroy, (along with Adam Scott, who will replace Hoffman at the start of 2024) – signed a two-page letter that addressed “speculation in our game” and updated the Tour’s ongoing negotiations with Saudi Arabia’s Public Investment Fund, which has a deadline outlined in the framework agreement of the end of the year.
“Since Tiger joined the policy board on Aug. 1, the player directors have been doing everything we can to ensure the PGA Tour is best positioned to thrive for decades to come,” the memo read. “We have learned a lot, and we are encouraged by progress on multiple fronts.”
While not going into specifics, Tour Commissioner Jay Monahan earlier this week mentioned that he would be meeting with PIF governor Yasir Al-Rumayyan next week and noted that the deadline is “a firm target.”
Speaking at The New York Times DealBook Summit in New York City on Wednesday, Monahan acknowledged the Tour is in discussions with multiple parties about potential investment in a new for-profit entity.
“I’ll be with Yasir next week, and we continue to advance our conversations. And I think it’s pretty well known that there’s a large number of other interested parties that we’re also pushing to think about.”
The Tour has also been in discussions with other interested parties, including the Fenway Sports Group. Investment firm KKR & Co. was another group reported to have had discussions with the Tour, but Bloomberg News reported this week that they no longer are under consideration.
Monahan said a potential agreement with PIF may include at least one additional co-investor.
“What’s most important to our players is that they go from the model of being independent contractors to being owners,” Monahan said.
The player director memo said, “These are not traditional ‘private equity’ groups as has been reported, but rather multi-decade oriented, strategic partners,” the memo read. “Each group is optimistic about the growth opportunities for the PGA Tour and their ability to help drive the growth.”
The memo continued: “We have agreed that we will work to reach a unanimous consensus before voting on any proposal that either creates a for-profit entity or contemplates third-party investment.”
The memo reiterated Monahan’s remarks that there are opportunities for members to receive “equity grants” and the player directors “are committed to providing ownership opportunities to both current and future PGA Tour members.”
In the closing graph of the memo, the player directors admit they “know this has been a frustrating and confusing year,” and welcome feedback and questions. The memo closes by saying, they “are determined to get this right.”