Tiger Woods is about to get a whole lot richer.
On Wednesday, the PGA Tour is set to honor the steadfast loyalty of Tiger Woods, Rory McIlroy, and other leading golfers through substantial equity awards from the newly established PGA Tour Enterprises.
According to the Telegraph, Woods will receive $100 million in equity, while McIlroy is expected to get approximately $50 million.
This gesture is a part of the PGA Tour’s effort to compensate these players for their continued allegiance amid enticing offers from the Saudi-backed LIV Golf. The move comes after PGA Tour Enterprises secured an investment of up to $3 billion from Strategic Sports Group, which includes a mix of billionaire sports team owners. The specifics of how this investment will be utilized remain vague, but it will support the equity payouts.
The distribution of equity is based on various criteria including career achievements and popularity, with a significant portion—up to $750 million—designated for the top 36 players as determined by a confidential formula that accounts for these factors among others.
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It’s important to note that these equity stakes are not outright cash payments.
Players will see 50% of their equity vested after four years, an additional 25% two years later, and the final portion two years after that. Compliance with certain PGA Tour rules is required to retain the equity, including maintaining Tour membership standards and participating in sponsor meetings and media engagements.
The PGA Tour plans to distribute $100 million in equity annually, a sum that will accumulate substantially over time, backed by the $3 billion from Strategic Sports Group.
PGA Tour Commissioner Jay Monahan highlighted at The Players Championship earlier this year that the establishment of PGA Tour Enterprises and the collaboration with Strategic Sports Group are pivotal, enhancing the Tour’s ability to make significant investments and drive growth within the sport.
