According to The Telegraph, Tiger Woods has received an email informing him that he will receive up to $100m in equity for staying loyal to the PGA Tour.
The Newspaper reported that the veteran golf player has received an email from Sawgrass HQ that states he will be awarded up to $100m in equity for staying loyal to the PGA Tour, with Rory McIlroy possibly receiving $50m for not joining LIV.
Golf fans have awaited this news after the PGA Tour launched PGA Tour Enterprises earlier this year, a programme that promised players the ability to collect equity based on career accomplishments.
The commercial venture came from a partnership with Strategic Sports Group (SSG), a consortium of American sports team owners led by Fenway Sports Group, which owns Liverpool FC, Boston Red Sox and others.
At the time of its launch, it was believed that collectively players would have the opportunity to receive over $1.5bn in immediate and future equity in the new company, with the grants based on career accomplishments, recent achievements, future participation and services as well as PGA Tour membership status.
Approximately two thirds of the reported $1.5bn figure will be shared as equity to 193 golfers. However, The Telegraph has reported that $750m is to be split among the 36 superstars adjudged by the circuit, with sums expected to be different depending on the factors mentioned above.
At the time of PGA Tour Enterprises’ launch, Jay Monahan, CEO of the new Venture and Commissioner of the PGA Tour, emphasised: “Today marks an important moment for the PGA TOUR and fans of golf across the world.
“By making PGA Tour members owners of their league, we strengthen the collective investment of our players in the success of the PGA TOUR.
“Fans win when we all work to deliver the best in sports entertainment and return the focus to the incredible – and unmatched – competitive atmosphere created by our players, tournaments and partners.”
The first 36 will likely be pleased with their share, and the next 64 players will also collect $75m in equity between them. However, the next section will see a total of 57 players sharing $30m. In each group, career points will be the overriding determinant.
Looking forward, the Tour has pledged to award equity of $100m on an annual basis, with the hopes of the amounts increasing via sponsorships and broadcast deals.
The substantial amount that Woods is reportedly receiving is unsurprising, given his 82 Tour titles and his status as one of the biggest names and personal brands in golf.
Taking into account how big of a loss it would be to have Woods leave for LIV golf like fellow players such as Phil Mickelson, this venture looks to be a method to prevent more making the switch.
However, it is yet to be seen how much of an effect this initiative will have. When Jon Rahm left for the rival organisation, he received an upfront fee of $450m, which is far more than most PGA players will receive from this commercial venture.
