PGA Tour in possible standalone deal talks with Endeavor, Fenway Sports Group

NEW YORK – Endeavor Group and Fenway Sports Group, which owns the Boston Red Sox and Liverpool, are reportedly among United States investors exploring an investment in the PGA Tour.

KKR & Co co-founder Henry Kravis, who has an estimated net worth of US$10.6 billion (S$14.45 billion), is among other investors, sources have said. 

Any potential transaction could rival the PGA’s deal with Saudi Arabia’s Public Investment Fund (PIF).

First unveiled in June, the PGA’s proposed merger with the PIF-backed LIV Golf and the DP World Tour has divided the golfing world and irked some US lawmakers.

They have blasted the deal as “sportswashing” – where Saudi Arabia uses sports to improve its reputation as it faces criticism of its human rights record.

This is despite assurances by PGA representatives in July that the PIF would be only a minority investor in the combined entity.

The PGA’s talks with Endeavor and Fenway are still at an early stage, a source said, requesting anonymity because the matter is confidential. 

It is also possible that they end up partnering with PIF, and there is no guarantee of a transaction in either option, the people added. Endeavor, Fenway and KKR all declined to comment.

The PGA pointed to its statement from Wednesday, where it had said its focus “continues to be on finalising an agreement with the Public Investment Fund”, even as it has received some “unsolicited interest from other investors”.

A transaction remains a long way from completion, with the sides yet to agree to financial terms, and make further concessions to address regulatory concerns.

There is a timeline to reach a definitive deal by Dec 31 and if there is nothing concrete by then, the US investment from the three parties could be a possible alternative transaction.

Beverly Hills-based Endeavor, which has a market value of about US$9.5 billion, has increasingly focused on sports.

The company in September completed its takeover of World Wrestling Entertainment, combining two of the world’s most popular combat sports into a publicly traded entity known as TKO Group Holdings.

Boston-based Fenway, which has backers including basketball star LeBron James, has existing ties to golf.

One of its divisions, Fenway Sports Management, was involved with the PGA Tour’s Deutsche Bank Championship, and in August signed an agreement with the LPGA. Fenway is also an investor in Tiger Woods and Rory McIlroy-backed TMRW Sports, the parent of TMRW Sports, a planned golf league developed by TMRW. BLOOMBERG, REUTERS