In a groundbreaking move for professional golf, the PGA Tour has announced a $3 billion investment from Strategic Sports Group (SSG), a group of billionaire sports team owners. The deal will establish a new for-profit entity called PGA Tour Enterprises, with players gaining access to over $1.5 billion as equity owners. This move comes after the PGA Tour signed a framework agreement with the Saudi backers of LIV Golf, a commercial venture that has caused significant disruption in the golf world. The announcement, expected to be released on Wednesday, was obtained by the Associated Press.

PGA Tour Commissioner Jay Monahan held a conference call with players on Tuesday night to discuss the finalized deal. The Washington Post was the first to report the agreement with SSG. While negotiations with the Public Investment Fund of Saudi Arabia are still ongoing, the partnership with SSG allows for potential co-investment from PIF, pending regulatory approval.

The player equity program introduced by the PGA Tour will grant around 200 players initial grants based on career accomplishments, recent achievements, and PGA Tour status. These grants will vest over time, and recurring grants will be made for future players starting next year. Specific details of the equity ownership program were not disclosed.

SSG, led by Fenway Sports Group, includes owners of various professional sports franchises such as the Milwaukee Brewers, Atlanta Falcons, New York Mets, Boston Celtics, and Boston Red Sox. The group will invest an initial $1.5 billion into PGA Tour Enterprises, focusing on maximizing revenue for the benefit of players and enhancing golf globally. The remaining $1.5 billion will go towards PGA Tour business.

The PGA Tour board, which includes notable players Tiger Woods, Patrick Cantlay, Adam Scott, Jordan Spieth, Webb Simpson, and Peter Malnati, unanimously approved the deal. The player directors expressed their excitement about creating opportunities for current and future players to be more financially and strategically invested in the organization.

While the deal with SSG progresses, the PGA Tour continues negotiations with the Saudi national wealth fund, PIF, on future investments and a comprehensive agreement. The European tour, which has a strategic alliance with the PGA Tour, is also part of the framework agreement. The details of how the partnership with SSG affects PIF's involvement remain unclear.

The original agreement aimed to dismiss lawsuits involving LIV Golf, a rival league that has attracted prominent players like Dustin Johnson, Brooks Koepka, Phil Mickelson, and Bryson DeChambeau. LIV Golf recently signed Masters champion Jon Rahm to a reported $500 million deal, further highlighting the competition it poses to the PGA Tour.

The PGA Tour's decision to partner with SSG is seen as a significant step towards securing the future of professional golf. The involvement of prominent sports team owners and the creation of a player equity program demonstrates a commitment to the growth and success of the sport. As negotiations with PIF continue, the hope is to bring together the best players from both tours and create a unified and prosperous future for golf.