PGA Tour outlines new cash injection for past and present players
A new memo reveals how PGA Tour players will benefit from the $3bn investment from the Strategic Sports Group.
Following the PGA Tour's agreed $3bn investment deal with Strategic Sports Group, it has now been revealed how the cash injection will be distributed amongst players.
When the deal was finalised, it was confirmed that $1.3bn of the initial investment would be delivered straight into the pockets of past and present PGA Tour players, allowing them to become equity holders in PGA Tour Enterpirses, the new for-profit golf company that the SSG has invested in.
SSG is a group of US-based investors led by Liverpool FC and Boston Red Sox owner John Henry.
Related: Confirmed: PGA Tour approves $3bn investment from Strategic Sports Group
A new memo sent to PGA Tour players on Wednesday outlines how the cash will be allocated to players, with four distinct groups having been drawn up.
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.
PGA Tour players were sent an email detailing the grant players will receive if they meet certain criteria. pic.twitter.com/zYLj9yuK24
— NUCLR GOLF (@NUCLRGOLF) February 7, 2024
The memo sent to PGA Tour players also outlined that players will only be able to receive grants from one group.
The grants will also be vested over time, with minimum requirements needed for them to be received e.g playing 15 or more tournaments on the PGA Tour.
Some quick maths will tell you that the four groups' total equity only adds up to $930 million of the $1.3bn set aside for players. However, the memo also declared how the remaining $600 million would be allocated.
The memo stated:
With negotiations still ongoing between the PGA Tour and the Saudi Public Investment Fund, the memo also outlined that co-investment is permitted from the PIF as long as it is "subject to all necessary regulatory approvals."
Take me to more PGA Tour news!
Read More:
Johnny joined GolfMagic as Reviews Editor in 2023 having worked for Sports Impact for two years as Head of Social Media, working alongside prominent golf brands including Galvin Green, Motocaddy and Wilson.
