Rory McIlroy and his PGA Tour colleagues will finally learn the reward for their loyalty after snubbing LIV Golf.
On Wednesday, the PGA Tour members will be notified of their equity allocation resulting from a £1.2 billion investment program led by Fenway Sports Group, owners of Liverpool.
When LIV Golf was established in 2022 and made advances towards players, McIlroy was one of the individuals who declined their offers that were funded by Saudi Arabia. Although several athletes remained with LIV, some have proposed financial compensation for refusing to join them. Recently, they received recompense through a £1.2 billion deal agreed upon between Strategic Sports Group (SSG) and the group that turned down those opportunities earlier on.
Fenway Sports Group, the owners of Liverpool, joined forces with PGA Tour to create a profitable entity for SSG’s future stabilization amidst financial competition from LIV. As part of this partnership, players are set to receive equity in PGA Tour Enterprises through an aptly tailored scheme.
On Wednesday, the PGA Tour will notify the 193 qualified players about their initial award grants. The highest-performing golfers like Scottie Scheffler, Rory McIlroy and Patrick Cantlay from five seasons alongside veterans such as Tiger Woods shall receive a larger number of “membership units”. These units would mature over eight years which could motivate them to stay back instead of giving in to LIV’s irresistible attraction.
According to GOLF.com, the PGA Tour’s chief player officer Jason Gore stated in an informative video that will be distributed among players, “Ensuring our players are aware of the excellence and worthiness of competing on the PGA Tour while demonstrating appreciation for their loyalty is what truly matters.”
Contrary to the Player Impact Program of the tour, where players are incentivized for their fame and marketing abilities, Wednesday’s grant allocation is scheduled to remain undisclosed.
To further mollify PGA Tour players dissatisfied with how the LIVGolf controversy was managed, those who participate in the new tour and later return to the PGA Tour will not qualify for the equity program.
Four groups will be formed from the players, with Group 1 consisting of 36 players who will collectively receive 80% of the prize pool. This group includes notable names such as McIlroy, Woods, Scheffler, Justin Thomas and Jordan Spieth who are guaranteed to share £600m in equity.
The Group 2 consisting of 64 members will divide a total sum worth £60 million among themselves, including both the rank-and-file players and rising talents. On the other hand, Group 3 comprising of 57 participants shall share a pot amounting to £24m. Additionally, an exclusive fourth group constituting of past legends with distinguished careers on PGA Tour also has its own slice from a fund valued at £60m; however only living players are eligible for receiving equity awards which unfortunately cannot be transferred to their beneficiaries posthumously.
Once their equity has been vested, players can sell it but will be subject to taxation. Additionally, beginning in 2025, the top 20 players on tour each season will receive an annual £80m scheme following Wednesday’s equity awards.
