Loyalty Worth Multi-Millions to PGA Tour Stars Who Stayed

In a groundbreaking move that underscores the value of loyalty in professional golf, Tiger Woods and Rory McIlroy are set to receive substantial equity stakes for their unwavering commitment to the PGA Tour. According to reports by James Corrigan of The Telegraph (U.K.), Woods is slated to receive an impressive $100 million, while McIlroy will secure $50 million, all in equity, for their decision to remain with the PGA Tour and not join the rival LIV golf league.

This significant financial infusion is part of a larger funding arrangement with the PGA Tour orchestrated by the Strategic Sports Group. The deal, totaling $1.5 billion, allocates approximately two-thirds, or $750 million, to be distributed among 36 players identified by the Tour as the most deserving. As reported by Rex Hoggard of Golf Channel, the initial grants to players will amount to around $930 million, benefiting a total of 193 players.

The PGA Tour, however, has maintained silence on the matter, refraining from making any public statements regarding the distribution of funds. The criteria for determining the recipients’ worthiness include career achievements, such as major victories, Players championships, Tour championships, and other significant triumphs, collectively known as career points. These achievements serve as a barometer for the players’ value to the Tour.

The Player Impact Program (PIP) further refines the assessment of stars’ value to the Tour. Woods and McIlroy, for instance, have received substantial sums from PIP, with Woods netting $35 million and McIlroy securing $30.5 million. With an impressive 82 PGA Tour victories to his name, Woods stands out as one of the most valuable players in PGA Tour history, justifying his substantial reward.

McIlroy, boasting three FedEx Cup victories, also commands a high value in the eyes of the Tour. Speculations suggest that other top players like Jordan Spieth and Justin Thomas could potentially receive significant sums, with estimates hovering around $30 million each.

However, it’s crucial to note that the players are not receiving these amounts in cash but rather in the form of equity in the newly formed PGA Tour Enterprises organization. This equity distribution follows a structured vesting schedule, with 50 percent becoming vested after four years. Subsequent vesting periods occur at intervals of two years until the eighth year, by which time all equity will be fully vested.

To qualify for these equity stakes, players must meet certain criteria, including remaining loyal to the PGA Tour, fulfilling minimum playing requirements, and providing services such as sponsor engagements and media appearances. This stipulation ensures that players actively contribute to the Tour’s success even after receiving their rewards.

Beyond the initial 36 players, additional equity will be distributed among 64 players based on their FedEx Cup points earned over the past three years. Another group of 57 players will share $30 million in equity, determined by career earnings and frequency of finishing in the top 125.

Additionally, legendary players such as Jack Nicklaus, Gary Player, and Tom Watson, totaling 36 in all, will receive equity based on their career points, albeit exclusively while they are alive.

In total, up to 200 players will benefit from equity payments under this plan. Moreover, the remaining funds from the Strategic Services Group investment, approximately $600 million, will be allocated to players each season based on performance, akin to the existing PIP program. This annual distribution of $100 million aims to support promising future stars, ensuring a vibrant and competitive landscape in professional golf for years to come.