The PGA Tour is divvying up $1.5 billion. Here’s how they’ll do it

One week after saying a landmark funding for $1.5 billion (or extra), PGA Tour commissioner Jay Monahan has up to date the Tour membership on simply how a lot fairness worth will likely be issued, and how many gamers will obtain it. 

It was one of the urgent questions following the announcement — $930 million is nice, however who is going to get it? On a players-only name final week, Monahan made clear that the quantity could be “near 200,” however Wednesday’s memo, which was obtained by GOLF.com, revealed extra specifics: 193 gamers to be actual. 

The lion’s share of the preliminary grants in PGA Tour Enterprises (a brand new for-profit entity) — $750 million value, or greater than 80 % — will likely be going to a bunch of 36 gamers. You can comfortably assume that Tiger Woods, Rory McIlroy and gamers of comparable fame and accomplishments will likely be a part of what the memo referred to as “Group 1.” These recipients are incomes grants based mostly on their profession efficiency, their previous 5 years of efficiency and ends in the annual Player Impact Program, a system that measures optimistic affect on the PGA Tour. 

After Group 1 comes a a lot bigger Group 2, which can pull from a a lot smaller pool of financial worth in grants. Group 2 consists of 64 gamers, whose grants will quantity to an combination of $75 million, and will likely be based mostly on efficiency on the PGA Tour over the past three years. Group 3 follows with a complete of 57 gamers incomes grants that can vest to an combination whole of $30 million, based mostly on their fully-exempt standing as Tour members. 

Finally, Group 4 will embody 36 gamers “who were instrumental to building the modern PGA Tour, based on career performance.” It stays to be seen which former gamers would qualify by way of Group 4, however this writer is able to recommend a lifetime member like Davis Love III would make sense. Could these Group 4 grants lengthen all the way in which again to Jack Nicklaus, and even the property of Arnold Palmer? Nicklaus did meet the SSG funding reps final week and joined the players-only name led by Monahan. Nicklaus supposed to share some ideas with the membership on the decision, however there was an obvious technical problem that saved him from doing so. 

Importantly, eligible members solely qualify for one grant, that means McIlroy, although he would match into all 4 teams, will obtain a grant solely from Group 1. For gamers to see their grants vest, they might want to play the minimal 15 occasions on the PGA Tour yearly, and/or “serve requirements commensurate with the value of the grant.” 

What is most clear is that the implementation of this program will obtain loads of scrutiny, not simply in a authorized sense, but in addition from the membership receiving these grants. Most gamers can have a tough concept of the place they stand, however Player No. 37 would seem like on the skin wanting in at Group 1, the place a a lot larger quantity of worth could be on supply. 

The PGA Tour hosted a gamers assembly Tuesday evening in a resort close to this week’s WM Phoenix Open, the place this info was first shared. Over the course of the subsequent six weeks, gamers will likely be knowledgeable about eligibility, taxation, advantages and different particulars. Then, throughout the week after the Players Championship, they are going to discover out precisely the place they stand throughout the rating of Groups. 

Keen accountants will see that $930 million doesn’t match the $1.5 billion that the Tour has promised will likely be issued in whole fairness grants. The lacking $600 million from that equation will fall into recurring grants issued beginning in 2025 and persevering with (on the very least) via the 2030 season. That means $100 million will likely be doled out in grants every year and will likely be rewarded, the memo mentioned, “based on last 3-year performance, last year performance, and Player Impact Program results.” In different phrases, starting in 2025, a top-performing participant like, say, Xander Schauffele, might anticipate to obtain extra grants to the preliminary one obtained in March.