Rory McIlroy is poised for a windfall of approximately $50 million as negotiations with the Saudi Public Investment Fund continue.
Today, Tiger Woods will receive an email from Sawgrass HQ announcing his loyalty bonus from the PGA Tour, potentially totaling up to $100 million in equity. This move not only benefits Woods but also stands to enrich Rory McIlroy by a similar amount, given his decision not to join LIV.
Jay Monahan, the PGA Tour commissioner, will initiate the distribution of highly personalized messages that have been eagerly awaited since Strategic Sports Group injected $1.5 billion into PGA Tour Enterprises three months ago. This consortium, led by Fenway Sports, comprises US investors.
Out of this hefty sum, roughly two-thirds will be distributed as equity among 193 golfers. However, the top 36 players, identified as superstars by the tour, will receive a lion’s share of $750 million, with each receiving vastly different amounts. The breakdown of these figures has been kept confidential by Monahan and his management team.
The distribution will be influenced by various factors, including Career Points, which reflect a player’s achievements on the tour over time. Additionally, contributions to the Player Impact Program, which measures a player’s influence on ticket sales, sponsorships, media engagement, and fan interaction, will also be considered. Woods and McIlroy have already earned substantial amounts through this program.
Woods, with his record 82 Tour titles, is expected to lead the pack by a significant margin, potentially receiving double the amount of any other player. Despite Phil Mickelson’s strong standing before joining LIV, Woods’ dominance and the formation of the new entity owe much to Mickelson’s role in the sporting landscape.
Following Woods, McIlroy, with three FedEx Cup victories to his name, will likely be the next highest earner, followed by players like Jordan Spieth and Justin Thomas.
While lucrative, this payout does not translate to immediate cash in hand. Recipients will receive equity units with a predetermined fair market value, subject to vesting periods and tour membership requirements.
Beyond the top performers, the PGA Tour plans to distribute equity totaling $100 million annually, incentivizing players to accrue Career Points.
Despite concerns over talent dilution due to recent TV ratings, equity value is expected to rise, particularly if negotiations with the Saudi Public Investment Fund bear fruit. However, regardless of the outcome, today’s golf professionals can rest assured that financial stability is within reach.
