Tiger Woods is set to receive up to US$100 million in equity for remaining loyal to the PGA Tour, with Rory McIlroy poised to get around US$50 million, according to The Telegraph.
The two golfing stars are being rewarded for not defecting to the Saudi-backed LIV Golf circuit, with the payments arriving nearly three months
after the PGA Tour announced a US$3 billion investment deal with Strategic Sports Group (SSG), a consortium led by Fenway Sports Group (FSG), to form PGA Tour Enterprises.
SSG is making an initial investment of US$1.5 billion, which could increase to up to US$3 billion.
Now, around US$1 billion will reportedly be split between 193 golfers, with US$750 million to be divided between 36 of the world’s top players.
After the three dozen, the next 64 players will pocket US$75 million in equity between them.
A further 57 golfers will share US$30 million and US$75 million has been allocated for the 36 players considered ‘living legends’ who have retired.
In each group, a ‘career points’ metric, which awards marks for achievements on tour for however long the players have been competing, will purportedly be the primary decider over how equity is awarded.
Other determining factors include how players have performed in the Player Impact Program (PIP), a bonus pool set up in 2021 to reward golfers who drive fan and sponsor engagement.
According to The Telegraph, Woods has already received US$35 million in PIP payments, while McIlroy, who topped last year’s standings, has got US$30.5 million from the programme.
The PGA Tour has also pledged to award equity of US$100 million on an annual basis going forward, rewarding those who are quickly racking up career points.
It should be noted that this new payday from the PGA Tour does not mean guaranteed cash for players. Recipients will reportedly be told how many equity units they have been granted and what the fair market value is at this juncture. Players will also not be allowed to cash in immediately and then abruptly sign for LIV Golf.
It is understood that after four years, 50 per cent of equity will be vested, with a further 25 per cent two years later and the remaining amount two years after that. Players will also have to agree to the rules which, aside from not jumping ship to LIV Golf, involve meeting the minimum requirements for tour membership and, if not, providing services such as sponsors meets and media appearances.
There is, of course, the prospect of the value of the equity growing if the PGA Tour can finally agree a deal with LIV Golf after the pair, along with the DP World Tour, announced a shock framework agreement last June. Since then, talks have dragged on between the parties to combine their commercial operations, with the original deadline of 31st December having been and gone.
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Source: Los Angeles Times
