The ongoing threat of a Saudi-backed Super League has dominated the golfing headlines in recent weeks, with Greg Norman continuing in his, and LIV Golf Investments', pursuit to set up a rival breakaway league. But there's also another league in town.
UPDATE: Greg Norman launches $250m Saudi Super League - Full story
RELATED: What is the Premier Golf League?
The Premier Golf League (PGL), headed up by London financier, Andrew Gardiner appears to have gained significant traction since it last came to light. The PGL has a very similar concept to the rumoured Saudi-backed Super League, with 18 events throughout the calendar year, consisting of 12 four-man teams in 54-hole, no cut, stroke play tournaments. Each with a purse of $10m.
World Golf Group, the organisation behind the PGL, has written to Rory McIlroy and outlined numerous plans in a leaked email obtained by the Fire Pit Collective. Significantly, the letter is dated 14 February, the date McIlroy became one of four player-directors on the PGA Tour's policy board.
The letter states the intention to generate significant equity for PGA Tour, DP World Tour and Korn Ferry Tour members that vote in favour of the plans. As a result, it would allocate 100 million shares with a prospective value of an astonishing $10 billion; which the PGL believes it can generate in equity value by 2030.
PGA Tour members would receive 50% of those shares, with Korn Ferry Tour members receiving 7.5% and DP World Tour members just 2.5%. There are further, albeit smaller, allocations for Commercial Partners, the World Golf Group, and PGA Foundation and Directors.
In addition, the proposal includes a future equity release of $460m – which means that PGA Tour members would each receive $2m upon launch, with Korn Ferry Tour members each getting $300k. It is believed no future equity release can be granted once the $460m is spent. This is a future advance prior to any golf shot being hit in a bid to demonstrate the future financial success and value of the incorporation and to entice players to join in its inception. It will also place significant pressure on the PGA Tour to work with, rather than against, the PGL.
The financial make up of World Golf Group is said to be going through extensive scrutiny by industry audit experts in order to determine its validity but it does not involve any Saudi Arabia, or other, sovereign wealth funds. The wealth of the incorporation is said to be funded through private equity and high net worth individuals in the United States.
The proposal has been discussed by the PGA Tour, its policy board and a cross section of its Player Advisory Committee with those discussions ongoing.
View the leaked email below:
