Champions League of Golf Valued at Near Half Billion Dollars in Series A Round

Champions League of Golf Valued at Near Half Billion Dollars in Series A Round

TMRW Sports recently completed a Series A investment round co-led by Dynasty Equity and Connect Ventures. Reports indicated the funding round valued the company behind TGL at $500mm.

TGL is a new tech-enabled team golf league founded by Tiger Woods, Rory McIlroy, and sports executive Mike McCarley. Its teams will be comprised of just Tour stars, all of whom will be mic’d up for sound. League matchups are set to air in primetime on Monday and Tuesday nights beginning Jan 7, 2025. Entire ‘rounds’ can be played within two hours.

Think of it like a Champions League of sorts for golf.

Woods, McIlroy, and McCarley are creating TGL in partnership with the PGA Tour. The Tour aligned with TMRW because it recognized the sport’s traditional format does not necessary appeal to many of the game’s newest participants (see: TopGolf influence, COVID impact). To draw in a younger and more diverse fan, without alienating its existing audience, it needed an adjacent, repackaged product.

The PGA Tour also envisions TGL events creating new storylines and helping to weave narratives between, and to drive additional interest in, Tour stops on a week-to-week basis–a potentially powerful catalyst for growth.

It’s logical to wonder how many other leagues could benefit from creating similarly strategic ancillary properties targeted at next-gen fans.

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TMRW Sports’ half-billion valuation may sound rich considering the company has yet to host its first event. FWIW, the reported figure is a bit high. 

However, the real number, which isn’t too far astray, is based on a reasonable multiple of contracted revenues. The startup league already has a high-profile naming rights partner (see: SoFi), a national media rights deal (see: ESPN), and a host of other blue-chip sponsors on board (think: Genesis).

In other words, TGL is not your typical challenger sports property.

That is in part because it the game’s biggest star is involved—and everyone wants to be in the Tiger Woods business. Woods will play every third week and participate in broadcasts and attend matches as a team owner on weeks he is not playing.

But marquee brands are also finding it easier to bet on a league in a sport with an existing fan base than on one still trying to find a consistent following stateside (think: pickleball, padel, or volleyball).

TGL’s potential to create organic viral moments has been a draw for sponsors too. The expectation is the league’s star power, its focus on the golfer’s personalities, and individual player rivalries will all contribute towards making the type of content that gets passed around the group chat. 

And that TMRW’s celeb-filled investor pool will amplify the clips’ social reach. The company’s cap table, which includes the likes of Shaquille O’Neal, Justin Timberlake, and Lewis Hamilton, collectively maintains more than a billion followers across platforms.

It’s important to understand that TGL is not just an abbreviated version of golf (like T20 cricket).

At its core, the game remains unchanged.

TGL is leveraging advanced technology to pack 15 holes of live action into a short television-friendly product. The tech will enable fans at home and in attendance to see every shot (matches will be played in a custom-built arena versus on an expansive course).

The vibe in and around that building should be much different than the typical golf tournament. Ryder Cup and Waste Management Open aside, live golf events tend to be relatively quiet affairs. TGL is planning to have lights, player intros, and a DJ playing music throughout its rounds. 

There will also be pre-parties outside the Palm Beach arena for the high-end crowd expected.

“It’s going to be packaged as an event,” one insider said.

But even with its shorter format, star power, and party-like atmosphere, it’s hard to envision young millennials and Gen-Zs —the next-gen PGA Tour fan— tuning into a linear cable network for two hours on a weekday evening; unless you subscribe to the narrative that TGL is going to captivate the minds of young bettors.

Remember, during a typical golf event few shots are shown live, and the number of betting markets is relatively limited.

That shouldn’t be the case with TGL. With just one ball in play at a time, every shot is going to be shown in near real time. And with all the players involved financially well off and no money at stake on any one TGL event, sportsbooks should be able to lean into weekly matchups more than they would for a typical PGA Tour stop.

While it seems unlikely that young fans will tune in en masse, TGL’s packaging should give it a better chance of attracting the demo than a random Saturday or Sunday afternoon PGA Tour tournament has. And the hope is once there, the competition and banter will spark storylines and drive their interest in the following weekend’s ‘traditional’ tournament.

If it plays out that way, TGL will become a powerful marketing vehicle for the PGA, and other leagues are certain to follow and create shortened, more bet-able versions of their own game.

While some sports don’t need a revamped format to draw in next-gen fans (see: American football, basketball), many others would benefit from having one. Cricket, tennis, and motorsports come to mind.

TMRW’s next venture will be in partnership with the LPGA Tour. Once that league is up and running, expect to see mixed or crossover events with TGL players (think: Woods playing alongside Nelly Korda). The idea is to generate the viral moments that help it, and the two tours, gain awareness and cultural relevancy.

The investors in TMRW’s most recent round do not need the company to create any other properties to reap PE like returns. TGL’s success would be sufficient. For context, the PGA Tour has a ~$15bn valuation.

However, if TMRW did succeed on one or two other properties, their ROI could be significantly greater.

It’s worth noting that those investing at a league level maintain a level of downside protection. TGL sold six expansion franchises. The cash generated in those transactions, the venue in Palm Beach, and company’s proprietary technology are all real assets that they hold a partial claim to.

The league could always sell additional teams too. And if/when they do, it’s likely going to occur at multiples meaningfully greater than what the inaugural franchises sold for.

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