PGA Tour to Distribute $930 Million in Equity From Investment, With Current Members and Legends Getting Shares
When the PGA Tour starts doling out the money it is getting from private equity to its players, there is a good chance a guy named Jack Nicklaus could enjoy some of the riches.
A memo from PGA Tour commissioner Jay Monahan to players on Wednesday outlined a plan that will see $930 million go to qualified members in initial grants.
Last week, the Tour announced a deal with Strategic Sports Group, which made a multi-billion-dollar investment in what will be a new for-profit company called PGA Tour Enterprises.
PGA Tour commissioner Jay Monahan (left) outlined how initial money from Strategic Sports Group's investment will be distributed.
Chris Condon/PGA Tour via Getty Images
The memo did not mention Nicklaus by name, but the wording suggests that someone of Nicklaus's stature will be rewarded because he was among players who were "instrumental to building the modern PGA Tour, based on career performance."
Sports Illustrated obtained a copy of the memo, which was first reported by Golf Digest.
No player names were mentioned and Monahan cautioned that the Tour was taking steps to follow regulatory protocols. But it did spell out various groups of players.
- The first group would see $750 million in equity granted to 36 players based on career performance, last five-year performance and Player Impact Program results.
- The second group would see $75 million in equity granted to 64 players based on their performance over the past three years.
- The third group would see $30 million in equity granted to 57 players who have earned fully exempt PGA Tour status.
- And the last would see $75 million in aggregate equity granted to 36 players who were “instrumental to building the PGA Tour, based on career performance."
Nicklaus, 84, helped spearhead a break from the PGA of America in 1968 with Arnold Palmer, Gardner Dickinson and others, which led to the formation of a separate entity for touring pros now known as the PGA Tour. His career record of 73 victories including 18 major championships, not to mention his hosting of the Memorial Tournament, are also factors that would make the Golden Bear a lock for this type of reward.
Monahan’s memo also stated that another $600 million would be distributed through recurring grants.
“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),” the memo said.
“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. Like the initial grants, the recurring grants will require minimum participation and/or service requirements commensurate with the value to the grant.”
The memo does not address the Public Investment Fund of Saudi Arabia, the backer of LIV Golf which is said to still be in negotiations with the PGA Tour to become part of PGA Tour Enterprises—as was initially outlined in the June 6 "framework agreement."
Last week, Monahan said that regulatory approvals would be part of that process.
LIV’s signing of Jon Rahm in December and the Tour’s subsequent deal with SSG have heightened tensions between the two sides leading to conjecture about if a deal will get done—although both sides have said often that is their ultimate goal.
