How PGA Tour stars will split new $1.5bn windfall

Last week, the PGA Tour struck a landmark agreement with a consortium of billionaire US investors that will will allow players to become equity holders in a new for-profit company. 

The major $3 billion investment deal with Strategic Sports Group will see players share equity in the new for-profit entity named PGA Tour Enterprises.

And details have now emerged about how $1.5bn will be divvied up between players on the US circuit.

In a memo sent to players on Wednesday, PGA Tour commissioner Jay Monahan outlined how an initial $930million will spread out amongst past and present players.

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As per Golf.com, ‘Group One’ will split $750million between a group of 36 players based on career performance and results in the Player Impact Programme. It would be a safe bet that the likes of Rory McIlroy and Tiger Woods will fit into this bracket.

There will also be $75million in equity divided between 36 past players who were deemed “instrumental in the building of the modern PGA Tour.”

At this stage, its unclear if Tour legends like Jack Nicklaus, Arnold Palmer and Tom Watson will be considered for these grants.

Here is the full breakdown as outlined in Monahan’s memo…

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. 

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These equity grants will be received by 193 players on the PGA Tour at the end of March.

The remaining $600 million promised to players as part of the agreement in equity grants will be issued in recurring grants starting in 2025 and continuing all the way through to at least 2030.

The memo read: “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.

Ben Parsons joined bunkered as a Content Producer in 2023 and is the man to come to for all of the latest news, across both the professional and amateur games. Formerly of The Mirror and Press Association, he is a member at Halifax Golf Club and is a long-suffering fan of both Manchester United and the Wales rugby team.