The PGA Tour has agreed a private equity deal worth around $3bn (£2.36bn) with a group of investors led by Liverpool FC owner Fenway Sports Group.
As a result, golfers who remained loyal to the tour and rejected advances from rival LIV Golf Tour are set to receive $1.5 billion in immediate and future equity.
Members were informed of the deal, which has been in the works since December last year. It coincides with the launch of PGA Tour Enterprises, a new for-profit company initially valued at $12 billion and which will run alongside the nonprofit, tax-exempt tour.
PGA Tour Commissioner Jay Monahan, who will serve as chief executive of the new for-profit company, said: “Today marks an important moment for the PGA Tour and golf fans around the world.
“By making PGA Tour members owners of their league, we are strengthening our players’ collective investment in the success of the PGA Tour.”
In a joint statement, PGA Tour player directors Patrick Cantlay, Peter Malnati, Adam Scott, Webb Simpson, Jordan Spieth and Tiger Woods added: “We were proud to vote in favor of this historic partnership.
“It was extremely important for us to create opportunities for players of today and tomorrow to become more invested in their organization, both financially and strategically.”
Fenway is facing Strategic Sports Group (SSG), a conglomerate of leading sports investors that is providing the cash infusion.
Other members of SSG include Arthur Blank (owner of the Atlanta Falcons), Wyc Grousbeck (Boston Celtics), Marc Lasry (Milwaukee Bucks), Tom Ricketts (Chicago Cubs), Cohen Private Ventures (New York Mets) and HighPost Capital.
SSG will invest up to $3 billion in PGA Tour Enterprises with an initial contribution of half that amount. Players will receive equity in the new company based on their achievements, status on the tour and future participation.
As of now, Saudi Arabia’s Public Investment Fund (PIF) is not involved, although the PGA Tour has confirmed discussions are underway about future investments.
The PGA Tour, as well as Europe’s DP World Tour, are in talks with the PIF – which funds LIV Golf – and a framework agreement announced in June last year has yet to be ratified.
The LIV season begins Friday in Mexico with new signings Tyrrell Hatton and Adrian Meronk joining Masters champion Jon Rahm as debutants on the tour.
The recruitment of this trio of European stars has put even more pressure on the golf establishment. Over the past two years, LIV has attracted major talent, including Brooks Koepka, Dustin Johnson, Bryson DeChambeau and Cameron Smith.
But the SSG deal brings a measure of security to the PGA Tour which is strategically aligned with the DP World Tour.
The PGA Tour says the strategic alliance remains a priority and discussions continue on a beneficial path forward.
The US Tour has embarked on a series of $20 million “signature events”, introduced to keep pace with LIV’s lucrative 14-tournament schedule.
It remains unclear when or if golf will come together under an agreed-upon schedule that would allow players to compete on the LIV and PGA Tours.
Rory McIlroy, previously a staunch critic of the Saudi-funded tour, said this week he had “changed his mind” in calling for reconciliation.
Speaking ahead of the $20 million Pebble Beach Pro-Am in California, the world number two from Northern Ireland said: “I see where golf is at and I see that having a diminished PGA Tour and a diminished LIV Tour or anything else is bad for both parties.”