Number Crunch: What the $3bn Investment Means for PGA Tour Players

The PGA Tour has drafted an email on what the new SSG investment might mean for its players.

The $3bn move was announced last week as a huge swing in favour of the Tour – and the beginning of what might look like financial compensation for the guys that stayed despite tantalizing offers being dangled their way.

There are four groups according to the memo, outlined as follows:

• $750m aggregate equity (that’s ¾ of a billion dollars) granted to 36 players based on career performance, last 5-year performance, and the ‘slush fund’ Player Impact Program results.
• $75m aggregate equity in the Tour, granted to 64 players based on last 3-year performance.
• $30m in aggregate equity, granted to 57 players that have earned full exemption on the PGA Tour.
• $75m in aggregate equity granted to 36 players who were instrumental to building the PGA Tour, based on career performance.

PGA Tour Set to Announce MASSIVE New $3bn Investment Partner

Some initial thoughts:

Guys like Rory are obviously in group 1. But they are also group 4. The better you are the more likely you could fall into wither group, and we are seeing qualitative metrics for quantitative outcomes, always an interesting scenario. Those just outside the top 50 in the FedEx Cup would likely see themselves in group 3, so the Chesson Hadley’s of this world can still be rewarded for their loyalty to the Tour.

Michael Kim took to X to open it up to his followers, asking ‘What group am I guys?’

What group am I guys? pic.twitter.com/DZHT91V4Aw

— Michael S. Kim (@Mike_kim714) February 7, 2024

As always, @acaseofthegolf1 was ahead of the curve in sharing this email. The breakdown of the equity stake for the PGA Tour’s top 193 (I did the math) players is interesting and obviously an attractive proposition. Switching to for-profit status will attract the younger college guys who may have thought about the eye-watering sums available on the LIV Tour, and could swing the pendulum back in Jay Monahan’s favor when recruiting the top young guys in their senior year (or sophomore in the case of Caleb Surrat).

Cover Image via New York Times