Tiger Woods Headlines Group Of 36 Players Set To Receive Massive Loyalty Payouts From PGA Tour
It's tough to put a price tag on loyalty, but the PGA Tour is giving it its best shot by delivering very large paydays to some of its top players who have not made the jump to LIV Golf.
Back at the end of January, the PGA Tour struck a $3 billion investment deal with Strategic Sports Group, a consortium of American billionaires, to form a for-profit entity called PGA Tour Enterprises. After the deal was made official, the Tour sent a statement to its membership that explained "players would collectively access over $1.5 billion in equity in PGA Tour Enterprises."
Up to $750 million of that $1.5 billion looks to be headed into the bank accounts of the Tour's biggest names.
The overall popularity of players and career success are reportedly playing a role in the payouts, but loyalty to the PGA Tour amid an ongoing threat from LIV Golf is also a part of the equation.
Given that Tiger Woods is still a (somewhat) active PGA Tour member, it should come as no surprise that he will be receiving the largest piece of the equity pie, with the Telegraph reporting his share will be $100 million. Rory McIlroy is expected to receive about $50 million in equity. Jordan Spieth and Justin Thomas are each expected to receive $30 million, according to a report.
McIlroy is the only player among those four who has earned a PGA Tour victory over the course of the last year, having won the 2023 Scottish Open in July.
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According to the report, a total of 193 PGA Tour players will be receiving equity shares, but approximately $750 million will be divided among 36 players who best meet a criteria formula determined by the Tour.
PGA Tour Is Paying It's Stars
It is worth noting that these equity payments won't just be a simple, one-time direct deposit into the bank accounts of players.
"After four years, 50 percent of their equity will be vested, with another 25 percent two years later and the remaining amount two years after that," the Telegraph report notes. "They will also have to fall in line with the rules, which as well as not decamping, involve meeting the minimum requirements for Tour membership and, if not, providing services such as sponsors meets and media appearances."
The Tour has reportedly pledged to award $100 million worth of equity on an annual basis. That may seem like a relatively small figure when we're talking about a $3 billion investment, but handing out $100 million every 365 days will undoubtedly make a dent with other unknown investments from that $3 billion simultaneously taking place.
It was no secret that the PGA Tour would be rewarding its top talent for its loyalty, and we've now gotten a look behind the curtains of how the Tour looks to keep its most-lucrative players happy.