Endeavor has confirmed that the PGA Tour has turned down the agency’s offer of investment and an expanded strategic partnership.
Endeavor president and chief operating officer Mark Shapiro has said that the offer, which involved the agency making a minority investment in return for being paid US$25 million per year for services, had been officially rejected.
“They’ve officially turned it down,” Shapiro told Sportico. “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’s offer would have seen it sell media rights and hospitality, while also providing analytics to the competition. It already works to sell tour sponsorships through its IMG subsidiary, and it also represents golfers and brands that sponsor the PGA Tour in other parts of its business.
He added that the investment would have been made by TKO Group Holdings, the newly formed company created following the merger between the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE), as part of a wider consortium.
Endeavor would have had no more than a ten per cent stake in the consortium, with Shaprio declining to name prospective partners.
SportsPro says…
Reports of Endeavor’s interest in investing in the PGA Tour first appeared lost month, with the agency’s chief executive Ari Emanuel confirming an offer had been made not long afterwards.
The offer was made against the backdrop of uncertainty surrounding the US-based circuit’s planned merger with LIV Golf and DP World Tour, which was announced in June. The agreement would make the Saudi Arabia’s Public Investment Fund (PIF), the backer of LIV Golf, the exclusive investor in a new entity that would own the commercial businesses and rights of all three competitions.
It remains unclear as to how close the merger is to being finalised, amid scrutiny from US lawmakers who oppose the deal. While the PGA Tour has said the merger’s closure remains its priority, it has also yet to address whether it would be open to investment offers from other parties, with Fenway Sports Group (FSG) and Arctos Sports Partners among those reportedly interested in providing funding.
Source: https://www.sportspromedia.com/news/pga-tour-endeavor-mark-shapiro-investment-offer/