Category: PGA Tour

The PGA Tour is facing a historic change: for the first time in its history, a CEO is being sought who will work closely with Commissioner Jay Monahan. Monahan, the PGA Tour’s top executive since 2017, has initiated numerous reforms during his tenure, including the expansion of international tournaments and the increase in prize money. He currently faces the challenge of leading the Tour through a period of profound change, characterized by economic investment and competition from LIV Golf.

This decision marks a milestone in the restructuring of the organization, which is being driven by a $1.5 billion investment from private equity firms, notably Strategic Sports Group (SSG), as well as strategic partnerships such as with Fenway Sports Group. SSG is an alliance of leading US sports entrepreneurs working with the PGA Tour to strengthen its commercial objectives. In early 2024, the SSG made a $1.5 billion investment that went towards the creation of PGA Tour Enterprises, a for-profit subsidiary of the Tour.

Strategic realignment for the economic future of the PGA Tour

Jay Monahan announced the search in a year-end message and emphasized the opportunity to bring new perspectives to the leadership team. “Everything is on the table,” Monahan explained optimistically. The aim of the realignment is to secure the sporting and economic future of the PGA Tour and at the same time strengthen the integration of player interests.

While the Tour is seeking an agreement with the Saudi Public Investment Fund, which is a minority investor in LIV Golf, negotiations are still ongoing. Nevertheless, the first signs of rapprochement between PGA Tour and LIV Golf players can be seen at “The Showdown”, an exhibition match between top players from both camps – a small step towards reconciliation on the golf horizon.

The new CEO will play a key role in the strategic leadership of PGA Tour Enterprises, which oversees the Tour’s profitable businesses. The search committee, led by Atlanta Falcons owner Arthur Blank, includes high-profile members such as Tiger Woods and Adam Scott. In parallel, the PGA Tour is planning innovative changes, including the modernization of the PGA Tour Studios for content production and the introduction of new competition formats, such as the TGL (Tomorrow Golf League), which launches in January.

The restructuring of the PGA Tour takes place in an environment of numerous changes in professional golf. In addition to the PGA Tour’s CEO search, the LPGA, the PGA of America and LIV Golf are also looking for new leadership.

The prize money in golf has risen rapidly, especially in recent years. Provided they are successful, golfers win millions in winnings. But they don’t earn them alone: they are always accompanied by their caddies, who are also entitled to a share of the winnings. As a rule, the caddies are entitled to a fixed share of the prize money: ten per cent if they win, seven per cent for the top 10 and five per cent if they make the cut. Bryan Kopsick, PGA Tour caddie, has now revealed what he earned and what he spent last season.

This is how the caddie’s earnings are made up

Bryan Kopsick works as a caddie for Ben Silverman, a 36-year-old Canadian who is coming off his best season on the PGA Tour and is ranked 110th in the money list with earnings of more than $1.2 million. On X (formerly Twitter) he wrote: ‘How much are PGA Tour caddies paid?’ His calculation includes Silverman’s earnings, which amount to 1,262,599 US dollars from 24 events played. According to his calculation, he is entitled to eight per cent of the prize money per event, which in this case is 101,007.92 US dollars. In addition, he earns 2,000 US dollars per event. His total income is therefore 149,007.92 US dollars. He adds: ‘This does not include sponsorships/off course income OR travel expenses.’

How much are PGA Tour caddies paid?

Ben’s 2024 earnings – $1,262,599
Events played – 24

$1,262,599 x .08 = $101,007.92
24 events x $2,000 = $48,000.00

Total on course earnings $149,007.92

This does not include sponsorship/off course income OR travel expenses

Ask whatever

— Bryan K (@InvestingCaddy) November 2, 2024

The fact that Kopsick is not paid according to the 5/7/10 per cent rule is due to the fact that Ben Silverman is a ‘great guy’. At the end of the day, it is up to the players what they want to pay their caddies. However, he has to deduct around 50,000 US dollars in travelling and professional expenses from the approximately 150,000 US dollars. In turn, he can add income that he generates through sponsorship. However, there is no exact figure here.

‘We don’t do it for the money’

Kopsick also admits that the figures mentioned are from a very good year. In previous years, Silverman was still at home on the Korn Ferry Tour and had far lower profits (2021 – 74,890 US dollars, 2022 – 23,936 US dollars, 2023 – 522,828 US dollars). The shares Kopsick was entitled to can be easily calculated based on his presentation above: Significantly lower earnings.

If he worked on a first-class golf course, he could also earn up to 100,000 US dollars. However, if the conditions here are not ideal, it would quickly remain at 40,000 to 60,000 US dollars. The caddie also argues: ‘It’s hard, but we don’t do it for the money. It’s extremely rewarding to try and help someone succeed at what they’re truly good at.’ He also says he has ‘the coolest job in the world’ and can eat ice cream the night before a competition despite his job in sport.