Rory McIlroy finds himself on the brink of a windfall, poised to potentially pocket around $50 million as negotiations with the Saudi Public Investment Fund continue
Meanwhile, Tiger Woods received notification from Sawgrass HQ indicating he’s set to receive up to $100 million in equity as a gesture of appreciation for his steadfast loyalty to the PGA Tour. McIlroy stands to benefit, albeit to a lesser extent, possibly securing a significant sum for abstaining from joining LIV.
The long-awaited personalized messages, orchestrated by PGA Tour commissioner Jay Monahan, have finally been dispatched following a substantial injection of $1.5 billion into PGA Tour Enterprises by Strategic Sports Group, led by Fenway Sports, a few months back.
The distribution of approximately two-thirds of this fund as equity among 193 golfers, with $750 million earmarked for the 36 top performers identified by the Tour, promises substantial payouts. Monahan and his team have been diligent in maintaining confidentiality regarding the specifics of these allocations.
Career points, a metric reflecting players’ accomplishments over their tenure on the Tour, weigh heavily in determining the distribution. Additionally, performance in the Player Impact Program (PIP), designed to reward players who significantly influence the Tour’s business metrics, factors into the equation. Woods and McIlroy have notably reaped substantial rewards from the PIP, reflecting their impact on the Tour’s commercial success.
Expectedly, Woods, with an impressive 82 Tour titles to his name, is poised to lead the pack by a significant margin. Insiders speculate that he could potentially secure double the equity of any other player under the sliding-scale system.
While Phil Mickelson would have ranked high had he not aligned with LIV, his departure has reshuffled the rankings. Nonetheless, the emergence of the Saudi-backed league has played a pivotal role in catalyzing these developments.
McIlroy, boasting three FedEx Cup victories, trails Woods closely in the equity standings, followed by other top performers like Jordan Spieth and Justin Thomas.
Despite this historic payout, recipients won’t immediately cash in on their equity. Vesting occurs over four years, with stringent adherence to Tour membership requirements and obligations.
Beyond the fortunate top performers, additional players will also benefit, with equity totaling $75 million shared among the next 64 players and further allocations for retired legends. Moving forward, the Tour pledges annual equity awards totaling $100 million, rewarding rising stars like Ludvig Aberg based on their rapid accumulation of career points.
While uncertainties linger, including ongoing negotiations with the Saudi Public Investment Fund, one thing remains clear: the current cohort of professionals is poised for financial security in the foreseeable future.
