Tiger Woods is set to receive exciting news today via email from Sawgrass HQ: a substantial equity reward of up to $100 million for his unwavering commitment to the PGA Tour. Likewise, Rory McIlroy stands to benefit, potentially pocketing around $50 million for opting not to join LIV.
The announcement comes on the heels of a landmark investment by Strategic Sports Group, spearheaded by Fenway Sports, injecting a hefty $1.5 billion into PGA Tour Enterprises. This influx of capital, only three months prior, paves the way for transformative changes within the organization.
A significant portion of this investment, approximately two-thirds, will be distributed as equity among 193 golfers. However, with $750 million earmarked for the 36 top-tier players deemed most deserving, the distribution will vary significantly. The exact breakdown has been shrouded in secrecy, with PGA Tour Commissioner Jay Monahan and his team guarding the details closely.
The allocation criteria include Career Points, a metric reflecting players’ achievements throughout their tenure on the Tour. Additionally, contributions to the Player Impact Program, which evaluates players’ influence on the Tour’s business metrics such as ticket sales, sponsorships, media engagement, and fan interaction, will factor into the equation.
Having already received substantial sums through the Player Impact Program—$35 million for Woods and $30.5 million for McIlroy—their positions atop the earnings ladder seem secure. Woods, boasting an unparalleled 82 Tour titles, is poised to command a lion’s share of the equity, potentially doubling that of his closest competitors.
While Phil Mickelson’s departure to LIV excludes him from this windfall, his involvement in the sport’s recent upheaval indirectly contributed to the establishment of this equity scheme. Meanwhile, McIlroy’s impressive track record, including three FedEx Cup victories, positions him as Woods’s closest contender for equity rewards.
Despite the allure of lucrative offers from alternative leagues, such as the Saudi-funded endeavor that lured Jon Rahm with a staggering $450 million, the PGA Tour’s equity scheme offers long-term potential. Recipients will receive equity units with a vested period spanning several years, contingent upon continued Tour participation and adherence to membership requirements.
While the top tier of players will enjoy substantial equity shares, lesser-known players will also benefit, with equity distributions cascading down through various tiers based on career points. Looking ahead, the Tour pledges to annually allocate $100 million in equity, incentivizing rising stars like Ludvig Aberg to accumulate career points rapidly.
Despite recent challenges, including declining TV ratings and talent dilution due to rival leagues, optimism abounds for the Tour’s future financial health. Negotiations with the Saudi Public Investment Fund offer potential for further growth, reinforcing players’ confidence in their long-term financial security within the PGA Tour ecosystem.
