Tiger Woods is set to receive a substantial equity payment from the PGA Tour, reportedly up to $100 million, as a reward for his loyalty to the organization. This announcement comes as part of a larger initiative where a consortium of US investors, led by Fenway Sports (owner of Liverpool FC), injected $1.5 billion into PGA Tour Enterprises, creating a new for-profit company.
The equity distribution is anticipated to benefit 193 golfers, with approximately two-thirds of the investment allocated in this manner. However, the distribution among players will vary significantly, with a considerable portion, $750 million, earmarked for the 36 top-performing golfers, including Tiger Woods and potentially Rory McIlroy.
Key criteria for determining the allocation include Career Points, which recognizes players’ achievements over their careers on the Tour, and the Player Impact Program (PIP), which assesses their influence on the Tour’s business aspects such as ticket sales, sponsorships, media engagement, and fan interaction. Woods, with his unparalleled 82 Tour titles, is expected to lead the pack by a considerable margin.
The initiative comes in response to the threat posed by alternative leagues, notably the Saudi-funded venture, which has enticed some players with substantial offers. Notably, Phil Mickelson’s decision to join the rival league excluded him from benefiting from this equity scheme, although his involvement may have contributed to its establishment.
Players like Rory McIlroy, with significant achievements such as three FedEx Cup victories, stand to earn substantial equity, estimated at around $30 million. However, despite the lucrative payouts, recipients will not be able to immediately cash in their equity, with vesting periods spanning several years and contingent upon continued adherence to Tour rules and obligations.
Beyond the top earners, other players will also receive equity, with a total of $75 million allocated to 64 players and additional funds distributed among retired legends. The Tour plans to continue this equity distribution annually, with a commitment to rewarding rising talents based on Career Points, thereby ensuring a sustainable financial future for its participants.
Despite recent challenges such as declining TV ratings, the PGA Tour remains optimistic about the growth potential of its equity program, especially if it secures a partnership with the Saudi Public Investment Fund. Overall, this initiative aims to secure the financial well-being of current and future professionals amidst a changing landscape in professional golf.
