PGA Tour to offer members equity ownership in new corporation - ESPN

ST. SIMONS ISLAND, Georgia — Once it reaches an agreement with Saudi Arabia's Public Investment Fund or U.S.-based investment partners — or perhaps even both — the PGA Tour will offer its members direct ownership in the newly formed corporation, PGA Tour commissioner Jay Monahan said in a memo sent to players Tuesday.

The memo comes on the heels of Monday's marathon meeting at PGA Tour headquarters in Ponte Vedra Beach, Florida, in which policy board members, including Tiger Woods, were apprised of potential investment partners.

«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,» Monahan's memo said.

«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 PGA Tour reached a surprising framework agreement with the Public Investment Fund (PIF) and the DP World Tour on June 6. The framework agreement is set to expire Dec. 31, although sources have told ESPN that the deadline can be extended.

For the past few months, the PGA Tour has been weighing bids from several U.S. based entities, including Fenway Sports Group, which owns the Boston Red Sox, Pittsburgh Penguins and Liverpool FC. Fenway Sports Group has emerged as one of the strongest potential partners, sources told ESPN. Last week, Fenway Sports Group chairman Tom Werner confirmed to CNBC that