How PGA Tour golfers are divided

The PGA Tour's parent organization plans to convert $930 million into shares, which will be distributed to nearly 200 golfer members in the initial phase of establishing a business unit called PGA Tour Enterprises.

Tiger Woods and Rory McIlroy will be among the highest-paid players when PGA Tour Enterprises is privatized. Photo: AFP — Tiger Woods and Rory McIlroy will be among the highest-paid players when PGA Tour Enterprises is privatized. Photo: *AFP*

PGA Tour Enterprises was revealed on January 31, when Strategic Sports Group officially became a non-controlling shareholder with an initial capital commitment of $3 billion, with $1.5 billion to be disbursed in the near future. In the preliminary announcement, the PGA Tour plans to use about 35% for improving digital platforms, developing data programs, promoting arenas and reinvesting when appropriate opportunities arise. The remainder is expected to be converted into shares for member golfers. This benefit sharing ratio will be based on individual professional results in the near future as well as the entire career.

On January 7, PGA Tour Special Envoy Jay Monahan sent an internal letter, providing a more detailed plan with a full program announcement scheduled for mid-March.

Accordingly, after receiving the disbursement of 1.5 billion USD, the PGA Tour will spend a total of 930 million USD to convert shares for 193 golfers in four groups. Based on the amount of money converted and achievements, group 1 will have 750 million USD for 36 individuals. This group is selected based on professional achievements in the last five years as well as career and "Player Impact Program" (PIP) results - a program that encourages members to promote or have a positive impact on the arena. According to that criterion, the group receiving the top shares almost certainly includes Tiger Woods and Rory McIlroy.

Meanwhile, Group 2 will receive $75 million for 64 individuals, selected based on their performance in the last three years. Group 3 will receive $30 million for 57 people who "have full privileges on the PGA Tour." For Group 4, the equity exchange budget will be at $75 million for 36 people, focusing on names that have recorded achievements that are legacy for their personal careers as well as future development for the PGA Tour, such as Jack Nicklaus, Woods.

The latest benefit announcement from the PGA Tour also clearly states that each individual is only entitled to one group and that the beneficiary must play at least 15 tournaments per season or meet the obligations when the organization requires with the workload commensurate with the value of the shares received.

After 2024, the PGA Tour will add $600 million to continue annual equity in PGA Tour Enterprises through 2030.

The newly established business unit is considered a necessary solution for the PGA Tour to raise capital and increase commercial activities when the parent organization is a non-profit and tax-exempt organization.

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