In February, PGA Tour Commissioner Jay Monahan unveiled the Player Equity Program. The PGA Tour had struck a deal with Strategic Sports Group to make an immediate investment of 1.5 billion dollars in a new for-profit entity called PGA Tour Enterprises. Part of the investment includes the Player Equity Program, designed to reward players for their loyalty to the PGA Tour. The 193 eligible recipients were notified of their equity shares by Tour Commissioner Jay Monahan, who is also CEO of PGA Tour Enterprises. “It’s about making sure our players know that the PGA Tour is the best place to compete and showing them how much the Tour appreciates them being loyal,” said Jason Gore, the Tour’s Chief Player Officer, in one of six informational videos the Tour has produced for members, which are available to Golf.com.
How the Money Is Distributed Among the PGA Tour Players
The plan envisages that around 930 million US dollars will be distributed to 193 players, taking into account four main categories. The players will not receive the money immediately, but in the form of shares in PGA Tour Enterprises, which will house the Tour’s commercial activities. Led by the Tour’s top stars, 36 players will receive a share of 750 million US dollars based on their performance over the last five years. That’s just over 80% of the prize that goes to only a few dozen pros. Points are awarded based on the number of years as a Tour member, participation in Tour Championships and victories, with special achievements such as Major titles, victories in the Players Championship and the FedEx Cup earning additional points. The second group, consisting of “consistent performers and up-and-coming talent”, will receive 75 million US dollars for 64 players. Their participation is based on FedExCup points over the last three years. A further 30 million US dollars will be awarded to 57 players in the third group, based on career earnings and the number of top 125 finishes in the FedExCup points. The fourth group, comprising “Legends of the Past”, including names such as Jack Nicklaus and Tom Watson, will receive 75 million US dollars. These funds are awarded on the basis of the “Career Points” system and are earmarked exclusively for living golf legends.
A key element of the program is the eight-year commitment period. Participations reach 50% of their value after four years, 75% after six years and the full 100% after eight years. At this point, players can sell their holdings to PGA Tour Enterprises. This arrangement is designed to strengthen player loyalty to the PGA Tour. Strategic Sports Group valued the PGA Tour at US$12.3 billion when it joined and this value is expected to increase over time.
What’s In It for the Top Players
According to a rough estimate by Golf.com, Tiger Woods will receive 528 career points, Rory McIlroy just 199, while Jordan Spieth and Justin Thomas have both accumulated a similar number of just under 100 points. All four players are expected to be part of Group 1 and all will receive substantial grants, but the difference in career points is expected to bring some differences in value. In short, Woods will receive the highest grant value (possibly by a wide margin) and McIlroy’s will be the second highest. Golf journalist Joe Pompliano estimates that Woods’ shares could be worth up to $100 million, double Rory McIlroy’s $50 million.
As part of its recent $3 billion fundraising round, the PGA Tour will start issuing equity payouts to its top players today, according to @jcorrigangolf.
Top Projected Payouts • Tiger Woods: $100 million • Rory McIlroy: $50 million • Jordan Spieth: $30 million • Justin… pic.twitter.com/luMfhumXMD — Joe Pompliano (@JoePompliano) April 24, 2024
Further Bonuses Expected In the Coming Years
In addition to the initial investment of 1.5 billion US dollars, the players will receive a further bonus of around 600 million US dollars in the coming years. These funds, amounting to USD 100 million per year from 2025 to 2030, will be awarded based on the performance and results of the Player Impact Program, with a particular focus on young talent.