The PGA Tour plans to distribute about 80% of $930 million price of preliminary participant fairness grants in its newly fashioned firm, PGA Tour Enterprises, to 36 high golfers based mostly on profession efficiency, outcomes over the previous 5 seasons and Participant Influence Program outcomes, commissioner Jay Monahan informed members in a memo on Wednesday.
The memo, a replica of which was obtained by ESPN, particulars how the PGA Tour plans to spend the $1.5 billion that Strategic Sports activities Group (SSG), a consortium of billionaire sports activities crew homeowners, are infusing in PGA Tour Enterprises, a for-profit entity.
The PGA Tour and SSG introduced final week that they’d reached an settlement during which SSG would make investments as much as $3 billion into the brand new firm. Within the memo, Monahan mentioned one of many outcomes of the SSG partnership was an fairness program, “the place PGA Tour members may have the chance to develop into direct fairness homeowners in their very own sports activities league — a first-ever step ahead in world sport.”
Monahan informed PGA Tour members that the Participant Fairness Program will grant over $1.5 billion in fairness in PGA Tour Enterprises to previous, present and future members over the following a number of years. Monahan wrote that this system is designed to “reward high performing members and incentivize them to help and construct PGA Tour Enterprises sooner or later; present a reward to a considerable portion of the present PGA Tour membership; and supply a reward to legends who helped construct the trendy PGA Tour.”
Beneath the plan, $930 million in preliminary participant fairness grants will probably be awarded to 193 PGA Tour members who will fall in considered one of 4 classes:
Group 1 will include the highest 36 gamers who will share $750 million in combination fairness based mostly on profession efficiency, final five-year efficiency and Participant Influence Program (PIP) outcomes.
Group 2 will embody 64 gamers who will share $75 million in combination fairness based mostly on final three-year efficiency.
Group 3 will include 57 gamers who’ve earned totally exempt PGA Tour standing and who will share $30 million in combination fairness.
Group 4 will embody 36 gamers who had been instrumental in constructing the trendy PGA Tour, based mostly on profession efficiency. They are going to share $75 million in combination fairness.
Within the memo, Monahan mentioned gamers will solely obtain one preliminary grant and that they are going to vest over time, which would require minimal participation, similar to taking part in 15 or extra occasions on the PGA Tour every season and/or “service necessities commensurate with the values of the grant.”
The tour can even award recurring participant fairness grants, which will probably be incremental to the preliminary grants, and will probably be price an combination quantity of $600 million. These grants will probably be awarded in $100 million totals annually, starting in 2025 and thru at the very least the 2030 season.
“It is very important notice that every one PGA Tour members are eligible to obtain recurring grants — no matter whether or not or not they acquired an preliminary grant,” Monahan wrote within the memo. “These recurring grants will reward future high performers and will probably be based mostly on final 3-year efficiency, final 12 months efficiency and Participant Influence Program outcomes.”
Monahan mentioned the tour hoped to complete finishing its authorized and regulatory necessities by mid-March and that gamers would be told of their particular person fairness issuances “instantly thereafter.”
“We’re enthusiastic about this historic second in PGA Tour historical past, and I stay up for partnering with every participant as we develop the PGA Tour now and sooner or later,” Monahan wrote.
The tour mentioned in a information launch final week that the take care of SSG permits for a co-investment from Saudi Arabia’s Public Funding Fund, topic to all needed regulatory approvals.