LeBron James And Drake Join Forces To Invest In PGA Tour
LeBron James and Drake are not only superstars in their respective fields, but also savvy investors who have diversified their portfolios across various industries. Their latest venture is golf, as they have become part of a group of celebrities who have personally invested in the PGA Tour’s new for-profit entity, PGA Enterprises.
PGA Enterprises is a result of a partnership between the PGA Tour and the Strategic Sports Group (SSG), an outside investment conglomerate headlined by Fenway Sports Group and comprised of several high-level U.S.-based sports owners. The deal will provide players equity in the new venture and will see the SSG invest up to $3 billion, with an initial investment of $1.5 billion. Only qualified PGA Tour players are eligible for the player grants, which will vest over time and will be based on career accomplishments, recent achievements, etc.
James and Drake are committing additional capital as “strategic investors”, and are expected to use their marketing power to help the tour broaden its audience. James and the PGA Tour commissioner, Jay Monahan, were at the home of Tom Werner, SSG’s chairman, recently discussing just that. Drake, who is an avid golfer himself, said in a statement to DealBook: “Golf can be so much more than a sport. I remember some of my best childhood memories was being on the golf course with my uncle. It’s one thing to invest in a team, but to help reimagine one of the biggest leagues in the world is an incredible opportunity and I’m excited to be a part of it.”
Other PGA Tour investors who were previously unidentified include actor Chris Pratt, James’s business partner Maverick Carter, James’s agent Rich Paul, CEO of United Talent Agency Jeremy Zimmer, and founder of UnitedMasters Steve Stoute²³. The point man behind the investments is Paul Wachter, the Los Angeles-based investor who now runs Main Street Advisors².
The PGA Tour’s move to create PGA Enterprises is seen as a way to fend off the competition from LIV Golf, a rival league backed by Saudi Arabia’s Public Investment Fund (PIF), which has been luring top players with lucrative offers. The PGA Tour has not shut the door on the PIF, and has extended the deadline to come to a definitive agreement with them based on the progress made to date. However, some players have expressed concerns about the human rights record of Saudi Arabia and the potential impact on the existing golf ecosystem.
With the involvement of James, Drake, and other celebrities, the PGA Tour hopes to attract more fans, sponsors, and media attention to the sport of golf, which has been struggling to grow its popularity and diversity in recent years. Whether this strategy will pay off remains to be seen, but one thing is certain: golf just got a lot more interesting.
