Today, Tiger Woods is expected to receive an email from Sawgrass HQ, notifying him of his potential $100 million equity reward for remaining loyal to the PGA Tour. Rory McIlroy stands to benefit with a possible $50 million for abstaining from joining LIV Golf, according to New York Post.
Jay Monahan, the PGA Tour commissioner, will send out these highly anticipated messages, made possible after Strategic Sports Group, led by Fenway Sports, injected $1.5 billion into PGA Tour Enterprises three months ago.
The bulk of this investment will be distributed as equity among 193 golfers, with $750 million earmarked for the 36 top players deemed most deserving. The allocation process, influenced by factors like Career Points and contributions to the Player Impact Program, has been kept under wraps by Monahan and his team.
Career Points, reflecting players’ achievements over their Tour tenure, play a pivotal role. Additionally, the Player Impact Program, designed to counter rival leagues, rewards players for boosting Tour business through ticket sales, sponsorships, media presence, and fan engagement. Woods and McIlroy have already benefited substantially from this program.
Woods, with his 82 Tour titles, is expected to lead the pack by a significant margin, possibly doubling the earnings of his closest competitors. Phil Mickelson, had he not joined LIV, would have been a prominent contender. Yet, the emergence of the Saudi-funded league, partly spurred by Mickelson’s involvement, prompted the PGA Tour’s response.
McIlroy, with three FedEx Cup victories, will likely trail Woods, followed by players like Jordan Spieth and Justin Thomas, each poised to receive around $30 million in equity.
While lucrative, this windfall isn’t immediately accessible. Recipients will learn the number of equity units granted and their current market value. These units vest over a four-year period, subject to compliance with Tour rules and ongoing membership.
Beyond the top earners, additional players will share in the equity distribution, with retirees also included based on Career Points. Going forward, the Tour plans to allocate $100 million in equity annually, rewarding rising stars like Ludvig Aberg.
Despite recent TV rating declines due to talent dilution, equity values are expected to rise, especially if negotiations with the Saudi Public Investment Fund succeed. Regardless, today’s professionals can rest assured of financial stability for the foreseeable future.
