On November 18, 2021, the PGA Tour announced that it had agreed to sell a minority stake in its media rights business to a group of investors led by Discovery Inc. The deal valued the PGA Tour’s media rights business at $7.3 billion, making it one of the largest deals in the history of professional golf.
Background of the Deal
The PGA Tour has been exploring ways to monetize its media rights for several years, as the demand for live sports content continues to grow. In 2020, the Tour created a new subsidiary, PGA Tour Media, to oversee its media rights business and explore potential partnerships and investments.
The Investors
Discovery Inc., a global media company known for its portfolio of television channels and streaming services, led the group of investors that acquired a minority stake in the PGA Tour’s media rights business. Other investors included the Saudi Public Investment Fund and The Raine Group, a merchant bank focused on technology, media, and telecommunications.
Impact on the PGA Tour
The sale of a minority stake in its media rights business is expected to have a significant impact on the PGA Tour’s financial position. The $7.3 billion valuation of the business will provide the Tour with a substantial cash infusion, which could be used to invest in player development, tournament infrastructure, and other initiatives to grow the game of golf.
Additionally, the partnership with Discovery Inc. and the other investors is expected to help the PGA Tour expand its global reach and attract new audiences through innovative content and distribution strategies.
Conclusion
The sale of a minority stake in its media rights business for $7.3 billion is a major milestone for the PGA Tour and represents a significant opportunity for growth and innovation in the world of professional golf. With the support of its new investors, the Tour is well-positioned to capitalize on the growing demand for live sports content and continue to thrive in the competitive media landscape.
