One other weird thing about the PGL offer is that it is to PGA Tour, Korn Ferry Tour, DP World Tour players at a single moment in time which I guess is TBD. If you happen to be a member of those tours at that moment: big windfall being offered. If you get on that tour next year: Too late, you get nothing. If you fall off the tour after that moment: you keep your windfall. It is purely to buy their way to the PGA Tour PAC table offering a crazy amount of money to do so.
Do you have any idea what a reasonable valuation of the PGA Tour would be right now? I know they are a non-profit vs these for-profit alternative leagues (PGL specifically) but it’d be interesting to think through how far off the PGL is from a valuation expectation to realistic revenue opportunity. I think what you’re saying is, their only revenue source would be a TV contract and the PGA Tour is already getting $700MM for their product. If the PGL were to get the same contract (unlikely), no way they would be valued at $10B. Am I thinking of that right? Have no clue what a reasonable revenue to valuation multiple would be for a league though. Thanks!
One other weird thing about the PGL offer is that it is to PGA Tour, Korn Ferry Tour, DP World Tour players at a single moment in time which I guess is TBD. If you happen to be a member of those tours at that moment: big windfall being offered. If you get on that tour next year: Too late, you get nothing. If you fall off the tour after that moment: you keep your windfall. It is purely to buy their way to the PGA Tour PAC table offering a crazy amount of money to do so.
Very informative thread Jared!! Will be interesting to see how it all plays out
Do you have any idea what a reasonable valuation of the PGA Tour would be right now? I know they are a non-profit vs these for-profit alternative leagues (PGL specifically) but it’d be interesting to think through how far off the PGL is from a valuation expectation to realistic revenue opportunity. I think what you’re saying is, their only revenue source would be a TV contract and the PGA Tour is already getting $700MM for their product. If the PGL were to get the same contract (unlikely), no way they would be valued at $10B. Am I thinking of that right? Have no clue what a reasonable revenue to valuation multiple would be for a league though. Thanks!