PGA Tour rejects Endeavor’s partnership offer amid financial terms disagreement
The PGA Tour has rejected a minority investment and potential strategic partnership proposal from Endeavor, the renowned international entertainment and sports conglomerate.
Mark Shapiro, Endeavor’s President and Chief Operating Officer, disclosed that the PGA Tour had declined the offer. The PGA Tour’s decision has been officially confirmed to Sportcal (GlobalData Sport). The decision is believed to be linked to financial terms set forth by Endeavor, which included a hefty $25 million annual service fee as a prerequisite for the deal.
“They’ve officially turned it down,” a circumspect Shapiro said.
“We’re big fans of golf, and we’ll continue to champion the PGA Tour, but we’re not going to be an investor at any level.”
Endeavor had expressed its interest in acquiring a stake in the PGA Tour earlier in the year, particularly in connection with the PGA Tour’s framework agreement with the Saudi Public Investment Fund, which would essentially unite the PGA Tour with the controversial LIV Golf venture.
Ari Emanuel, the CEO of Endeavor, confirmed that his company had submitted a bid for the partnership.
The discussions between the PGA Tour and potential investors, including Endeavor and Fenway Sports Group, were prompted by the PGA Tour’s introduction of an investment vehicle, a development tied to the framework agreement with the Saudi Public Investment Fund.
“We asked for $25 million a year in services, and if they would have agreed to that, we would have been happy to make a minority investment,” Shapiro explained.
“But we get it, they have a lot of suitors, a lot of bidders, a lot of attractive offers, and they declined. So we’ll just continue with our long-standing partnership as-is with the hopes of growing it further in the future.”
The existing collaboration between the PGA Tour and Endeavor involves Endeavor’s role in marketing commercial rights and managing tournaments for the premier golf series.
The framework agreement, which was unveiled in June, binds the PGA Tour, the DP World Tour of European golf and the PIF-supported LIV Golf circuit. The three entities have until December 31 to finalise a binding contract.
According to the terms of the framework agreement, the for-profit assets of these three circuits will be consolidated into a new subsidiary provisionally named NewCo. After an assessment of these assets, the PIF, which holds a 93 percent stake in LIV Golf, will make a minority investment in the new entity.
NewCo is slated to serve as an overarching entity for all future golf-related investments by these three groups, aiming to generate financial returns through targeted mergers and acquisitions to globalise the sport. Additionally, the PIF will become a ‘premier corporate sponsor’ by investing in both the PGA Tour and DP World Tour.
