Tiger Woods is set to receive $100mn worth equity as he remains the top influence on audiences
With the PGA Tour’s monopoly in top class golf being disrupted over the past two years by Saudi Arabia’s Public Investment Fund ( PIF), the tour has been forced to take several major steps to revamp their organisation.
A few weeks ago, The PGA Tour entered into a $3 billion investment deal with the Strategic Sports Group (SSG) and announced the launch of PGA Tour Enterprises which will house the PGA Tour’s commercial businesses and rights, as well as those of the DP World (European) Tour.
- The Tour announced players would receive equity grants into PGA Tour Enterprises, which is valued at $12 billion based on various factors, including playing accomplishments, future participation, and tour status.
- The first $930 million in grants was distributed to players divided into four categories:
- Group 1: Consists of $750 million in aggregate equity based on career performance, last 5-year performance, and Player Impact Program results. A total of 36 players were in this group including Tiger Woods ( US$100 million in equity) and Rory Mcilroy ( US$50 million in equity).
- Group 2: Consists of $75 million in aggregate equity granted to 64 players based on last 3-year performance.
- Group 3: Consists of $30 million in aggregate equity granted to 57 players who have earned certain fully-exempt PGA Tour status categories.
- Group 4: Consists of $75 million in aggregate equity granted to 36 players who were instrumental in building the modern PGA Tour based on career performance.
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- There is an eight-year vesting period, during which the grants will be worth 50 percent of their value after four years, 75 percent after six years, and the full amount at the end of eight years.
This move by the PGA Tour aims to further align the interests of players with the organization and compensate those who rejected offers from LIV Golf.
As negotiations for a settlement continue between the PGA Tour and the Saudi PIF, these announcements are geared to strengthen the PGA Tour’s negotiating position and pave the way for smoother cooperation between the players and the Tour.
Photo – PGA TOUR