Two of the biggest stars in sports and entertainment are taking a swing at golf.
Rapper Drake and Los Angeles Lakers star LeBron James are strategic investors in the PGA Tour, according to The New York Times.
In January, Fenway Sports Group (FSG) and Strategic Sports Group (SSG), a consortium of prominent U.S. sports team owners, partnered to create a commercial venture (PGA Tour Enterprises) in which players will gain equity. The deal calls for SSG to spend up to $3 billion, with $1.5 billion already down.
James, who became the first NBA player to reach 40,000 points scored in his career on Saturday, is an investor in FSG, the parent company of the Boston Red Sox and Pittsburgh Pirates. This investment is in addition to his involvement through FSG, according to the NYT report.
Drake, who is a global ambassador for the Toronto Raptors, isn’t new to being a celebrity investor. Both James and Drake bought a minority stake in soccer club AC Milan in 2022, alongside investment firm RedBird Capital Partners and the owners of the New York Yankees. (RedBird is also an investor in Fenway Sports Group.) James, who is ranked No. 4 in Sportico’s list of the world’s highest paid athletes, originally bought a minority stake in EPL soccer club Liverpool in 2011 before joining parent company FSG as an investor in 2021.
James, who was assisted by Main Street Advisors headman Paul Wachter, will reportedly be joined by other celebrity investors, including James’ business partner Maverick Carter, James’ agent Rich Paul, actor Chris Pratt, longtime recording executive Steve Stoute and United Talent Agency CEO Jeremy Zimmer.
“Anytime you’re able to invest in something with such a historical position like the PGA and the brand that has been built, I’m not passing up on that,” Paul said. “I don’t think it’s so much about the return but more about how I can add value. … I’m all about diversifying and that’s one that came across and made sense. You don’t get an opportunity at everything, but this one is pretty cool to be part of.”
Drake’s and James’ foray into golf comes as more Black celebrities and athletes get involved with growing the sport. NBA star Stephen Curry, who donated millions to jumpstart Howard’s University golf program, has been vocal about making the game more equitable. Black-owned lifestyle apparel brand Eastside Golf and Black-owned golf equipment company Renegade have also gained popularity.
Strategic Sports Group includes New York Mets owner Steve Cohen, Atlanta Falcons owner Arthur Blank and FSG owner John Henry, among other sports team owners. Boston Globe Media co-owner Linda Henry and Marc Lasry’s Avenue Sports Fund are also members of the group.
James has expressed interest in owning an NBA team if the league expands to Las Vegas. This additional investment into the PGA Tour allows him to get deeper into the ownership ranks.
The PGA Tour continues to have ongoing negotiations with the Saudi-backed LIV Golf league and the DP World Tour about their pending merger. The timeframe to negotiate expired last year, and the sides continue to seek a resolution, which still may include the Saudi Public Investment Fund (PIF). If the current broader deal holds, the Tour will remain in control of the for-profit entity, and SSG will be a minority investor.
The 2024 PGA Tour season continues with the Puerto Rico Open this weekend.
(This story has been updated in the seventh paragraph to add the quote from Rich Paul.)
