PGA Tour Players Who Rejected LIV Golf Offers Set to Find Out How Much Their Loyalty is Worth

PGA Tour players who rejected massive offers from LIV Golf are set to find out exactly how much their loyalty was worth to the TOUR, according to a new report.

As the PGA Tour has taken a massive hit with some of its biggest names leaving for LIV Golf’s guaranteed money, which, in some cases, was worth hundreds of millions of dollars, many of the players who remain expected to see some sort of payment for their loyalty.

Now, it appears an email will be sent to 193 players who are set to receive grants, as Jay Monahan will notify players tomorrow what they are worth, and it’s not as simple as an immediately available cheque written out to someone with a massive dollar figure attached.

Instead, players will be sectioned into four groups. There is around $1b being set aside for the players who remained loyal, and Group 1, which will include players who “rated well in the Player Impact Program, won many tournaments, and won important tournaments — like Signature Events or player-hosted invitationals — with an emphasis on the last five years,” according to Golf.

Tomorrow, PGA Tour players are expected to find out how much equity they’ll receive in PGA Tour Enterprises.

In other words, how much $$$ their loyalty has been worth.https://t.co/YLshehk0sw

— Sean Zak (@Sean_Zak) April 23, 2024

$750 million will be given to this first group — roughly 80 percent of the total payout set aside for the loyal players.

Groups 2, 3, and 4 will all consist of various subcategories that the TOUR comes up with. Group 2 is made up of “steady performers and up-and-comers.” Group 3 does not have a set player base, while Group 4 is being considered the “past legends” category, but we’re not likely to see Tiger Woods in there due to his strong PIP performance.

However, the report said Jack Nicklaus is set to receive a grant. They will not be awarded posthumously.

These three groups will all see $75 million each.

Not Immediately Available

Instead of players getting a cheque immediately for their efforts, their equity grants will vest over a long period of time.

Initial grants will vest on an eight-year timeline, with 50 percent of the value vesting after four years. Another 25 percent will vest after six years, and the final 25 percent will vest after eight. 

The players must remain with the TOUR, or they will forfeit any unvested equity.

They will also be taxed, according to Lance Stover, SVP of New Ventures at the TOUR:

“As with all forms of compensation … at each vesting milestone [years 4, 6, and 8 after the initial grants], players will be responsible for paying federal and state income taxes at ordinary income tax rates on the fair market value of the vested awards at the time of vesting.”

More Grants for Top Performers

There are $1.5 billion in total grants, of which $900 million is set aside for the groups. The other $600 million will be awarded to top performers on the TOUR, which will start in 2025.

Essentially, players are becoming owners of the TOUR, and they are being rewarded for their loyalty, as long as they remain loyal.

Ten months ago, Monahan said PGA Tour players would be rewarded for their loyalty. It seems that time is finally here.

Cover Image via The Independent