PGA Tour Plans to Offer Players Direct Ownership in New Venture amid Saudi PIF Talks

PGA Tour commissioner Jay Monahan revealed in a Monday memo that the organization plans to offer "direct equity ownership" to players in the proposed for-profit entity with the DP World Tour and Public Investment Fund (PIF) of Saudi Arabia.

Per Adam Schupak of Golfweek:

"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."

The entire memo can be read here, via Rex Hoggard of Golf Channel:

On June 6, the PGA Tour announced a "Framework Agreement" on a "three-party subsidiary" with the DP World Tour and Public Investment Fund (PIF) of Saudi Arabia, which is currently being referred to as "PGA Tour Enterprises."

As Monahan noted, the PGA Tour is "focused on our negotiations toward a Definitive Agreement with PIF and the DP World Tour as our priority."

Per ESPN's Mark Schlabach, the framework agreement is set to expire on Dec. 31, although the deadline can be extended.

In the meantime, the PGA Tour is still searching for outside investors in the for-profit enterprise. Eamon Lynch of Golfweek provided an exclusive report on Nov. 4:

"The five companies still under consideration are: Fenway Sports Group (FSG), which is partnered with investors Steven Cohen and Arthur Blank; Liberty Strategic Capital; Acorn Growth Companies; Eldridge Industries; and a group of influential individuals being referred to as Friends of Golf. Beyond the five groups bidding to be the Tour's main private equity partner, several other companies remain in the conversation as potential investors of additional capital."

Roadblocks exist en route to a deal. Per Schlabach, talks have reportedly slowed down with PIF "for a variety of reasons, including PIF officials wanting more control of the new for-profit enterprise." Schlabach also reported concerns that a "Saudi-only deal might not be approved by the U.S. Department of Justice's antitrust division."

For now, however, negotiations continue with the Dec. 31 deadline still a month-and-a-half away.