Tiger Woods receives an email from Sawgrass headquarters informing him that he will receive up to $100 million in stock for remaining loyal to the PGA Tour, while Rory McIlroy is likely worth $50 million for not joining LIV I told them that they would benefit from this.
PGA Tour Commissioner Jay Monahan has announced the long-awaited deal since Strategic Sports Group, a consortium of U.S. investors led by Liverpool FC owner Fenway Sports, poured $1.5 billion into the new PGA Tour Enterprise. I pressed the button for a super personal message. Commercial enterprise, 3 months ago.
Approximately two-thirds of this amount will be distributed in stock to the 193 golfers, but $750 million will be distributed among the 36 superstars the circuit deems most valuable, so the amount would be very different. So it's no wonder Monaghan and his management took pains to keep the breakdown secret.
The tour has already explained to its members that the main factor in determining who earns what is a metric called “career points,” and as it says on the tin, this is based on how much a player earns. Achievements on tour are evaluated based on how long a player has been competing.
Another factor will be how they perform in the Player Impact Program (PIP), which was introduced three years ago primarily to stave off the threat of a breakaway league. The program rewards players who have the greatest impact on the Tour's business: tickets, sponsorships, media consumption and fan engagement. Woods has already received $35 million in PIP payments, while McIlroy, who led the program last year, has withdrawn $30.5 million from this source.
Woods, an 82-time Tour champion, will inevitably command a huge lead in the overall standings, with insiders predicting he could earn twice as much as any other player on a sliding scale system.
Phil Mickelson would have finished second if he hadn't jumped to LIV — which obviously excludes the rebels — but this new organization and this plan is a big deal for the Saudi-funded league. It almost certainly would not have happened without the formation of and some of them. Mickelson's role in the sports civil war.
With three wins at the FedEx Cup, which is essentially the PGA Tour's prize money list, McIlroy became Woods' closest pursuer, followed by the likes of Jordan Spieth and Justin Thomas, who each received a stake worth about $30 million. I'm going to do it.
Annual stock awards to other PGA players
Of course, Jon Rahm paid an advance of $450 million for his defection late last year, but all of these names would have gotten far, far more money had they succumbed to the Saudi offer. Dew. And this record payday doesn't mean there's money in the bank. Recipients will be informed of the number of share units granted and what their current fair market value is. They can't cash out quickly and suddenly sign LIV.
After four years, 50 percent of the shares vest, another 25 percent vest after two years, and the remainder vest two years after that. They must also follow rules that include not only not breaking camp but also meeting minimum requirements for tour membership and, if not, providing services such as meetings with sponsors and media appearances.
The lucky 30 players will rub their hands together, but the next 64 players will also collect $75 million in stock between them. In the next tranche, a total of 57 players will share $30 million, with an additional $75 million to be split among 36 retired players considered living legends. For each group, career points are the most important determining factor. Going forward, the tour has pledged to give out $100 million in equity on an annual basis to reward players like second-year sensation Ludwig Aberg, who is quickly racking up career points.
Despite the tour's recent slump in TV ratings, capital will understandably increase as the dilution of talent from the split has taken its toll. No one expects it to fall. And if the tour can reach an agreement with the Saudi Public Investment Fund in ongoing negotiations, players are hopeful their stock could explode. At least one thing seems certain, even if it remains uncertain. It means that the current group of experts will not be in trouble any time soon.
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