How does PGA Tour equity work?

I doubt that anyone actually knows the details since Strategic Sports Group (the other "SGS") isn't required to disclose details of their investment or their operations.

Let's say a player is given equity in 2025, with an 8yr vesting period. Assume it's $5,000,000 ($5M) of equity, and the PGA Tour says that it's current market value is $5,000,000,000 ($5B).

In a normal business, the options for the equity owner would be:

1. After 8yrs, the equity would be vested and they could sell it assuming the market value of the company is up and there is a market available to sell the equity.
2. After 8yrs (or at any time), the company may offer to buy back the equity from the person, with some assumptions of the increased value of the company.
3. At some point, the original company (A) gets aquired by another company (B), and they are compensated for the vested equity, and potentially given new equity in Company B for the value of the unvested equity.

I'm curious what some of you golf-insiders might have heard about how this equity is being pitched to the players?

• Since this is a Private Equity investment by SGS, is there an expectation that PGA Tour Enterprises is eventually sold to another entity, hence an equity event occurs?
• Does SGS eventually plan to buyout all of the PGA Tour?
• I doubt the plan is to create an IPO for the PGA Tour, as sports leagues are typically not public (ever?), and they aren't a 12 month entity so reporting quarterly earnings would be odd (albeit not impossible)
• Is there some sort of equity-to-pension equation being pitched to them?Does that become like an accelerated pension redemption schedule?

Just curious if anyone has heard anything about his it's actually supposed to work.