'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
Endeavor is no longer in talks to lead an investment into the PGA Tour after making an offer that included a bigger strategic relationship between the two sides. In a telephone interview on Friday afternoon, Endeavor president and COO Mark Shapiro said:
“They’ve officially turned it down. We’re big fans of golf, and we’ll continue to champion the PGA Tour, but we’re not going to be an investor at any level.”
Their offer, according to Shapiro, was contingent on the company expanding its broader engagement with the PGA Tour, which includes everything from selling commercial rights to tournament administration.
Trending
Endeavor (NYSE: EDR) was looking for a multiyear arrangement that would pay it $25 million each year, he claimed. In exchange, they were aiming to head a group that would acquire "no more than 10%" of a PGA investment vehicle.
“We asked for $25 million a year in services, and if they would have agreed to that, we would have been happy to make a minority investment,” Shapiro said. “But we get it: They have a lot of suitors, a lot of bidders, a lot of attractive offers, and they declined. So we’ll just continue with our long-standing partnership as-is with the hopes of growing it further in the future.”
PGA Tour rejects Endeavor's offer amid merger talks
The PGA Tour has been in active talks with Saudi-backed LIV Golf, and the main European Tour about their planned commercial merger, which was announced in June. It has not yet been completed, and several organizations, including Endeavor, have proposed alternate financial options.
It is unclear whether the PGA Tour's rejection indicates a desire to proceed solely with Saudi Arabia's PIF fund as the primary investor of the combined business, or whether other possibilities are being considered.
A PGA Tour official confirmed Shapiro's remarks, but declined to comment on the status of further conversations. A PIF spokesman didn't reply to a request for comment.
Endeavor's eventful streak: WWE acquisition, TKO spin-off, and consideration of strategic options
Endeavor recently completed the acquisition of WWE as well as the spin-off of TKO Holdings. This week, the company revealed that it is considering "strategic alternatives" for the future.
Concurrently, Silver Lake, a large shareholder, indicated interest in a privatization proposal. This series of events has resulted in a 24% increase in the stock's value this week.
Following years of bitter public conflicts and legal fights, the PGA Tour created waves in the golfing industry in June when it announced plans to merge its economic interests with those of LIV Golf.
The proposed concept calls for the formation of a centralized body, principally managed by the PGA Tour. PIF is expected to hold a non-controlling minority ownership in the firm and serve as the entity's sole external sponsor.
