The investment would have given Endeavor a stake in PGA Tour and led to the expansion of Endeavor-owned IMG’s work on the Tour

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Negotiations between Endeavor and PGA Tour around a possible investment by Endeavor into PGA Tour have collapsed, according to a report by Sportico.

The aim of the talks was to secure a commercial partnership between Endeavor and PGA Tour that would have seen Endeavor being paid US$25m a year for its work with PGA Tour.

Endeavor’s investment into PGA Tour to create the commercial partnership would have been funded through TKO. However, the talks leading up to the proposed investment have fallen apart after Endeavor made an offer that was rejected by PGA Tour.

Endeavor president and COO Mark Shapiro told Sportico: “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.”

As part of Endeavor’s offer, the company would have expanded its work with the PGA Tour, which already involves the selling of commercial rights and tournament management of PGA Tour events. Endeavor-owned IMG sells tour sponsorships and operates the Honda Classic and PNC Championship events, while IMG Arena manages the tour’s gambling rights. Endeavor also represents golfers and golf sponsors in other parts of its business.

Endeavor’s proposed offer would have given it “no more than 10%” of a PGA investment vehicle.

TKO Group Holdings would have funded the investment. Endeavor controls a majority stake in TKO and Shapiro is also president and COO of TKO.

Endeavor’s offer comes as PGA Tour are in discussions with Saudi-backed LIV Golf and the European Tour about their commercial merger.

Shapiro confirmed to Sportico that Endeavor had asked for $25 million a year in services in return for a minority investment in PGA Tour, and said that following its offer being declined, “We’ll just continue with our long-standing partnership as-is with the hopes of growing it further in the future.”