Report: Equity in PGA Tour Enterprises to be broken into 4 groups

League: Golf

Posted on: 07 Feb, 2024 at 11:49 PM

Credit: John David Mercer-USA TODAY Sports

The $3 billion investment that the PGA Tour received from the Strategic Sports Group to create the PGA Tour Enterprises will be divided into four groups to allow players to become equity holders, Monday Q Info reported Wednesday.

A memo was sent to PGA Tour players on Wednesday that detailed the equity groups and how the grants would work.

Group 1 features $750 million of aggregate equity and will be divvied up among 36 players based on career performance, performance over the past five years and results of the Player Impact Program.

Groups 2 and 4 both have $75 million of aggregate equity. Sixty-four players will benefit from the Group 2 money based off of their three-year performance, while 36 players who played a key role in creating the modern PGA Tour, thanks to their career performance, will be in Group 4.

The final group, Group 3, will have $30 million of aggregate equity that gets dished out to 57 players who have earned specific exemptions on the PGA Tour.

Of course, those four groups add up to just $930 million of the initial $1.5 billion of Strategic Sports Group's $3 billion investment. Wednesday's memo did mention what the other $600 million would be used for, though.

"The recurring player equity grants are incremental to the initial grants, are in the aggregate amount of $600 million, and are planned to be awarded in the amounts of $100 million each year starting with the 2025 PGA Tour season and continuing through the 2030 PGA Tour season (at a minimum)," the memo stated. "It is important to note that all PGA Tour members are eligible to receive recurring grants - regardless of whether or not they received an initial grant.

"These recurring grants will reward future top performers and will be based on last three-year performance, last year performance and Player Impact Program results."

PGA Tour Enterprises is also permitting a co-investment from Saudi Arabia's Public Investment Fund as long as it is "subject to all necessary regulatory approvals."

--Field Level Media