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Jan. 31 (UPI) -- The PGA Tour and Strategic Sports Group officially launched PGA Tour Enterprises on Wednesday, closing on an investment of up to $3 billion from the consortium of American sports team owners. The transaction, the PGA Tour said, "allows for a co-investment" from Saudi Arabia's Public Investment Fund, "subject to all necessary regulatory approvals."
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Under the terms of the agreement, nearly 200 PGA Tour members will be given the opportunity for partial ownership in the new commercial golf venture -- PGA Tour Enterprises, which will remain under PGA Tour control.
"Today marks an important moment for the PGA TOUR and fans of golf across the world," PGA Tour commissioner and PGA Tour Enterprises CEO Jay Monahan said in a news release.
"By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA Tour.
"Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible -- and unmatched -- competitive atmosphere created by our players, tournaments and partners.
"And partnering with SSG -- a group with extensive experience and investment across sports, media and entertainment -- will enhance our organization's ability to make the sport more rewarding for players, tournaments, fans and partners."
Strategic Sports Group includes: John Henry, who also owns MLB's Boston Red Sox, English soccer power Liverpool and the NHL's Pittsburgh Penguins; Steven Cohen, who owns the New York Mets (MLB); and Arthur Blank, who owns the Atlanta Falcons (NFL) and Atlanta United (MLS).
Also, Wyc Grousbeck, owner of the Boston Celtics (NBA); Mark Attanasio, owner of the Milwaukee Brewers (MLB) and English soccer club Norwich City; and several other investors.
Last June, the PGA Tour, Europe's DP World Tour and PIF announced a framework agreement, with plans to merge assets, including the PIF-backed LIV Golf. That pact came after two years of legal battles between the PGA Tour and LIV Golf, which led to player feuds, suspensions and tournament banishments.
Negotiations between the parties are ongoing, as is an investigation into the union by the U.S. Senate Permanent Subcommittee on Investigations.
Strategic Sports Group, a minority investor, will make an initial investment of $1.5 billion as part of the deal. The PGA Tour said the group of billionaires already "consented to an investment by PIF."
The PIF has an estimated value of more than $700 billion. The PGA Tour said Yasir Al-Rumayyan, the PIF governor, will serve as chairman of PGA Tour Enterprises, if a definitive agreement is approved.
The new, for-profit entity will feature a 13-person board, which includes: seven players; four representatives from SSG; an independent director from the PGA Tour policy board; and the commissioner of the PGA Tour.
The PGA Tour season will continue with the AT&T Pebble Beach Pro-Am. The tournament will tee off Thursday and end Sunday in Pebble Beach, Calif.
LIV Golf will hold LIV Golf Mayakoba from Friday through Sunday at El Camaleon Golf Course in Playa del Carmen, Mexico.
