Jordan Spieth Doesn't Believe A PGA Tour - Saudi PIF Merger Is Needed After American Investors Jump On Board

The PGA Tour finalizing a $3 billion investment deal with the Strategic Sports Group has brought forth a new version of the same question the golf world has been asking itself for eight months now. We've now gone from when will the PGA Tour - Saudi PIF merger fall into place to does the PGA Tour still need the Saudis involved at all?

Jordan Spieth, a member of the PGA Tour policy board, has his answer, and his answer is no, the PGA Tour - Saudi PIF merger is no longer needed at this point.

"I don't think that it's needed. I think the positive would be a unification, but I think that, like I mentioned before, I just think it's something that is almost not even worth talking about right this second given how timely everything would be to try to get it figured out," Spieth explained shortly after the Tour's deal with SSG was announced. 

"But the idea is that we have a strategic partner that allows the PGA TOUR to go forward the way that it's operating right now without anything else with the option of other investors. Whether them or somebody else, that will just be a decision with them obviously being, you know, the active talks."

"But I think the short answer is we don't have to and I think the long answer is the positive there is a unification."

Jordan Spieth is of the idea that a PGA Tour - Saudi PIF is no longer needed, at least not at this point in time. (IMAGN/USA TODAY)

The Tour publicly acknowledged that it was in discussions with a number of different investment groups in 2023 months after PGA Tour commissioner Jay Monahan sat next to Saudi PIF governor Yasir Al-Rumayyan to announce a framework agreement on June 6 of last year.

The indication on June 6 was that the Tour would receive billions from the Saudis to invest in a new for-profit entity. As talks dragged on and the U.S. Department of Justice began to sniff around the situation a bit more aggressively, in came the consortium of American billionaires who formed the Strategic Sports Group to create a for-profit entity called PGA Tour Enterprises.

More Seats Added To The Negotiations Table

Equity is the name of the game now, both from a player's perspective and for any potential investors, including the Saudis, on the outside looking in on this new venture.

"Nearly 200 PGA Tour members will have the opportunity to become equity holders in this new company," the Tour's statement sent to players read. "PGA Tour Enterprises is also considering participation by future PGA Tour players that would allow them to. benefit from the business's commercial growth. Under this program, players would collectively access over $1.5 billion in equity in PGA Tour Enterprises."

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It appears an allotment of somewhere in the ballpark of $1.5 billion could be set aside for the top players on the Tour to cash in on. In looking at equity being a part of this equation, a potential merger between the Tour and Saudi PIF would involve the Saudis buying a share of the equity in PGA Tour Enterprises from the Strategic Sports Group.

Spieth hinted at this before explaining that the Saudi PIF investment isn't a necessity at this point, but now there isn't just the PGA Tour and its membership at the negotiation table, but the Strategic Sports Group as well.

"I think from where I sit, which is hopefully representing our entire membership, it matters how they feel about the entire situation," Spieth said at Pebble Beach.

"And then, you know, at this point if the PIF were interested in coming in on terms that our members like and/or the economic terms are at or not beyond SSGs and they feel it would be a good idea, I think that's where the discussions will start."