Just 36 of the PGA Tour’s top players, including Tiger Woods and Rory McIlroy, will share $750 million in equity in the new commercial entity created in partnership with a group of US sports team owners in a bid to protect the company from the threat . from LIV Golf. The figure represents half of the total assets payable to players and is sure to raise eyebrows elsewhere on the PGA Tour.
Last week it was confirmed that the PGA Tour had struck a deal, worth a total of $3 billion, with a consortium led by Fenway Sports Group. There is a plan for the Saudi Public Investment Fund, which finances LIV, to also invest, but that remains subject to regulatory pressure.
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It was known that players would be the winners of the latest golf deal, but the PGA Tour has now written a letter to members clarifying how an initial $930 million in equity will be distributed.
There are four categories. In the first and most notable, 36 golfers will gain access to $750 million based on “career performance, performance over the past five years and player impact program results.” In what was in itself a highly controversial “player impact” program, golfers actually received bonuses worth tens of millions for bringing attention to the PGA Tour. Some members of the Tour have made clear their dissatisfaction with the way the wealth is being distributed; This top-heavy approach is unlikely to calm them down, despite the blunt reality that players like Woods and McIlroy are greatly increasing interest in the sport.
Group two is for 64 players and $74 million in equity awarded for performance over the past three years. Another 57 players will share $30 million in equity once they “earn certain PGA Tour fully exempt categories.” The final portion, worth $75 million, is for 36 players who “have been instrumental in building the modern PGA Tour based on career achievements.” In normal times, Phil Mickelson would have inevitably earned based on the latest set of criteria, but he is among those banned from the PGA Tour after joining LIV. The PGA Tour has certainly emphasized that the money is for “eligible” members. Players can only earn through one group.
The third season of LIV continues this week in Las Vegas, with the PGA Tour making its traditional stop in Phoenix.