PGA TOUR OUTLINES NEW CASH INJECTION FOR PAST AND PRESENT PLAYERS.
A new memo reveals how PGA Tour players will benefit from the $3bn investment from the Strategic Sports Group.
After reaching a $3 billion investment agreement with Strategic Sports Group, the PGA Tour has disclosed its plans for distributing the funds among its players.
Once the agreement was concluded, it was verified that a sum of $1.3 billion from the original investment would directly benefit former and current PGA Tour players, enabling them to acquire ownership stakes in PGA Tour Enterpirses, the recently established golf company that received funding from the SSG.
SSG consists of American investors headed by John Henry, who is the owner of Liverpool FC and Boston Red Sox.
A new memo sent to PGA Tour players on Wednesday outlines how the cash will be allocated to players, with four distinct groups having been drawn up.
Group One:
Group One will receive $750 million in aggregate equity, divided up between 36 players, based on career performance, last five years’ performance, and Player Impact Programme results.
Group Two:
Group Two will receive $75 million in aggregate equity, split between 64 players based on performance over the last three years.
Group Three:
Group Three will receive $30 million in aggregate equity, shared between 57 players who have earned certain fully-exempt PGA Tour status.
Group Four:
Group Four will also receive $75 million, which will be divided between 36 former players who were instrumental in the building of the modern PGA Tour based on past performance.
“The memorandum distributed to PGA Tour participants additionally clarified that players will solely be eligible to receive donations from a singular organization.”
The grants will also be gradually earned, with specific conditions that must be met in order to receive them, such as participating in 15 or more tournaments on the PGA Tour.
If you do some calculations, you will realize that the combined equity of the four groups amounts to only $930 million, which is less than the $1.3 billion allocated for players. Nonetheless, the memo also states the allocation plan for the remaining $600 million.
The memo stated:
“The recurring player equity grants are incremental to the initial grants, are in the aggregate amount of $600 million, and are planned to be awarded in the amounts of $100 million each year starting with the 2025 PGA Tour season and continuing through the 2030 PGA Tour season (at a minimum) .It is important to note that all PGA Tour members are eligible to receive recurring grants – regardless of whether or not they received an initial grant.
“These recurring grants will reward future top performers and will be based on last three-year performance, last year performance and Player Impact Program results.”
The memo mentioned that co-investment by the Saudi Public Investment Fund (PIF) is allowed in ongoing negotiations with the PGA Tour, as long as it complies with all regulatory requirements.
