NEW YORK – Just over a month ago, a group of financiers and sports team owners, led by Fenway Sports Group (FSG), said it would invest up to US$3 billion (S$4.03 billion) in the PGA Tour, a watershed deal that gave players equity in the circuit as it fends off competition from the Saudi-backed LIV Golf.
Several powerful people in sports, music and entertainment had also invested personally. Two names are likely to draw attention – LeBron James, the superstar basketball player from the Los Angeles Lakers, and Drake, the rapper.
James had been a partner of FSG since 2021 but, for long periods, it was not publicly known that he was involved in the PGA Tour deal.
The investors are bringing more than money
FSG and fellow backers, including billionaires Steve Cohen, Arthur Blank and Marc Lasry, believe they can help reinvigorate the sport, particularly as the value of media rights soars.
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 recently at the home of Tom Werner, FSG’s chairman, discussing just that.
Fans may see the stars around the greens, perhaps in the same way Drake is a frequent courtside presence at the Toronto Raptors’ National Basketball Association (NBA) games.
“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,” Drake said in a statement to The New York Times’ DealBook.
“It’s one thing to invest in a team, but to help re-imagine one of the biggest leagues in the world is an incredible opportunity, and I’m excited to be a part of it.”
James and Drake aren’t new to sports investing
In 2021, James took a stake in FSG – he was actually named in the small print as an FSG investor in a news release announcing the US$3 billion deal – which owns Major League Baseball’s (MLB) Boston Red Sox and the English Premier League’s Liverpool. His investment is separate from FSG’s involvement.
In 2022, James and Drake invested in AC Milan, the Italian Serie A football club, alongside RedBird Capital Partners and the owners of the MLB’s New York Yankees.
Other previously unidentified PGA Tour investors
Actor Chris Pratt; James’ business partner, Maverick Carter, and the player’s agent, Rich Paul; Jeremy Zimmer, the CEO of United Talent Agency; and Steve Stoute, the founder of UnitedMasters, are among the other investors.
The man behind the investments is Wachter
Paul Wachter, the financial adviser-turned-investor, runs Main Street Advisors. The 68-year-old has been involved in many celebrity- and athlete-driven businesses, including Beats by Dre and NTWRK’s purchase of Complex in February. NYTIMES
