The PGA Tour Roadshow: A Good Walk Spoiled

Companies on the verge of an initial public offering typically conduct roadshows in an effort to stimulate investor interest.

A roadshow is a series of presentations made in various locations leading up to an initial public offering (IPO). The roadshow is a sales pitch or promotion made by the underwriting firm and a company’s management team to potential investors before going public. Roadshows generally take place in major cities and are meant to drum up interest in the upcoming offer. Potential investors are introduced to the company, its history, and its key personnel.

A story in Bloomberg this morning suggests that’s what the PGA Tour is doing as it continues its long walk spoiled towards a joint venture with LIV Golf.  

The PGA Tour, which has a pending deal with Saudi Arabia’s Public Investment Fund, has fielded unsolicited investor proposals, Commissioner Jay Monahan said in an email to players. “We remain focused on reaching a definitive agreement with PIF and the DP World Tour, but not surprisingly, these negotiations have resulted in unsolicited outreach and proposals from a number of other interested investors,” Monahan wrote in the email sent late Wednesday, a copy of which was seen by Bloomberg News. “All of this activity reinforces the Tour’s strong position and our potential for growth.”

Endeavor Group Holdings Inc. Chief Executive Officer Ari Emanuel said Wednesday at the inaugural Bloomberg Screentime conference that his company submitted a bid for a PGA Tour stake, confirming an earlier Bloomberg News report. Billionaire Henry Kravis and Fenway Sports Group, which owns the Boston Red Sox and Liverpool FC, are among US investors exploring investing in the PGA Tour. Any new investors may provide an alternative to the PIF transaction, though they could wind up partnering with the Saudi fund, a person with knowledge of the matter said. PGA Tour players are seeking to obtain an ownership in the new entity formed by the proposed tie-up with PIF and DP World Tour, Bloomberg News has reported.

The PGA Tour is still a 501(c)(6) as far as I know.  But I can’t see how.  Exempt organizations aren’t supposed to be doing roadshows, I’m just saying.

darryll k. jones