Just over a month ago, a group of financiers and sports-team owners, led by Fenway Sports Group, said it would invest up to US$3-billion in the PGA Tour, a watershed deal that gave players equity in the league as it fends off competition from the Saudi-backed LIV Golf.
What wasn’t reported then was that several powerful people in sports, music and entertainment had also invested personally. Two names are likely to draw attention: LeBron James, the superstar basketball player; and Drake, the rapper.
The investors are bringing more than money.
Fenway Sports Group and fellow backers, including billionaires Steve Cohen, Arthur Blank and Marc Lasry, believe they can help reinvigorate the sport, particularly as the value of media rights soars. James and Drake are committing additional capital as “strategic investors” and are expected to use their marketing power to help the tour broaden its audience. James and the PGA Tour commissioner, Jay Monahan, were at the home of Tom Werner, FSG’s chair, recently discussing just that, DealBook hears.
Fans may see the stars around the greens, perhaps in the same way Drake is a frequent courtside presence at Toronto Raptors games.
“Golf can be so much more than a sport. I remember some of my best childhood memories was being on the golf course with my uncle,” Drake said in a statement to DealBook. “It’s one thing to invest in a team, but to help reimagine one of the biggest leagues in the world is an incredible opportunity, and I’m excited to be a part of it.”
James and Drake aren’t new to sports investing.
In 2021, James took a stake in FSG – he’s actually named in the small print as an FSG investor in a news release announcing the US$3-billion deal – which owns the Boston Red Sox and Liverpool FC. James’s investment is separate from FSG’s involvement.
In 2022, James and Drake also invested in AC Milan, the Italian soccer club, alongside RedBird Capital Partners and the owners of the New York Yankees.
Other previously unidentified PGA Tour investors include …
Actor Chris Pratt; James’s business partner, Maverick Carter, and the player’s agent, Rich Paul; Jeremy Zimmer, the CEO of United Talent Agency; and Steve Stoute, the founder of UnitedMasters.
The man behind the investments is Paul Wachter.
The financial-adviser-turned-investor runs Main Street Advisors, and has been involved in many celebrity and athlete-driven businesses, including Beats by Dre and NTWRK’s purchase last month of Complex.