Two major figures from the worlds of entertainment and sports are stepping into the realm of golf. The New York Times reports that rapper Drake and basketball icon LeBron James from the Los Angeles Lakers have become strategic investors in the PGA Tour.
In a move made in January, the Fenway Sports Group (FSG) together with the Strategic Sports Group (SSG) — a collective of well-known owners of American sports teams — initiated a business endeavor named PGA Tour Enterprises. This initiative allows for player equity, with SSG committing up to $3 billion towards the venture, $1.5 billion of which has already been contributed.
LeBron James, celebrated for being the first player in NBA history to score 40,000 career points as of last Saturday, holds investments in FSG, the conglomerate behind teams such as the Boston Red Sox and Pittsburgh Pirates. His stake in the PGA Tour adds to his already extensive portfolio through FSG, as noted in the NYT.
Similarly, Drake, known for his role as the Toronto Raptors’ global ambassador, has a history of celebrity investments. Alongside James, in 2022, he entered the soccer sphere by acquiring a minority share in AC Milan with RedBird Capital Partners and the New York Yankees’ owners. (Notably, RedBird is an FSG investor as well.) James, who stands fourth in Sportico’s global ranking of the highest-earning athletes, ventured into the sports investment domain with a minority stake in the Liverpool FC soccer club in 2011, later escalating his involvement with FSG in 2021.
Guided by Paul Wachter of Main Street Advisors, James is expected to see a lineup of celebrity investors joining him, including his business partner Maverick Carter, his agent Rich Paul, actor Chris Pratt, music industry veteran Steve Stoute, and Jeremy Zimmer, CEO of United Talent Agency.
The entry of Drake and James into golf aligns with a growing trend of African American celebrities and athletes participating in the expansion of the sport. NBA standout Stephen Curry has been a notable figure in this movement, having contributed significantly to the establishment of Howard University’s golf program and advocating for the sport’s accessibility. Additionally, the rise of Black-owned brands like Eastside Golf in lifestyle apparel and Renegade in golf equipment underscores this momentum.
The Strategic Sports Group boasts members such as Steve Cohen, owner of the New York Mets, Arthur Blank of the Atlanta Falcons, and FSG’s John Henry, among others. Linda Henry of Boston Globe Media and Marc Lasry with his Avenue Sports Fund also contribute to this collective.
James has shown interest in furthering his ownership ventures, eyeing the possibility of owning an NBA team should the league introduce a team in Las Vegas. His investment in the PGA Tour marks a deeper dive into sports ownership.
Meanwhile, the PGA Tour is engaged in ongoing discussions with the Saudi-backed LIV Golf league and the DP World Tour regarding a potential merger. Despite the negotiation period having ended last year, efforts to find a solution continue, potentially involving the Saudi Public Investment Fund (PIF). Should the negotiations succeed, the PGA Tour is poised to maintain control over the commercial entity, with SSG positioned as a minority stakeholder.
