PGA Tour Payouts For Those Who Stayed

[PhillyV]

To me, except for the 54 vs 72 hole difference, it now means the PGA tour is no different than the LIV tour.

This loyalty pay out could also spark some jealousy in other players, making their move to the LIV tour an easier decision.

Wasnt the big issue most had with LIV was where the money came from, not necessarily the dollar amount?

 

[WLG1952]

Wasnt the big issue most had with LIV was where the money came from, not necessarily the dollar amount?

Yeah, they called it blood money, After a bit of researching, by myself, to me this was a misinformed, and hypocritical opinion. Mostly hypocritical.

The other part was they went for the "BIG" money. Some of the PGA tour players seems to be staying for the money.

What ever is going on, it's has a lot to do with the money. Money might be the legacy of this era's. player.

 

[DataDude]

I don't believe companies can argue that employees leaving to go elsewhere for more money is "stabbing them in the back" in a legal sense.

The PGA Tour is very different from a standard job. That’s not an apples to apples comparison. My job does not exist for my benefit like the PGA Tour exists for the benefit of its players.

 

[MtlJeff]

The PGA Tour is very different from a standard job. That’s not an apples to apples comparison. My job does not exist for my benefit like the PGA Tour exists for the benefit of its players.

Yeah for sure there's some legal elements to all of this and i'm not a lawyer, but the PGA now is a subsidiary of a for profit company i believe, so that likely changes things.

Anyway, it's just good conversation....i don't believe they will do this in the end, if only because the equity stake would be a good way to get players to come back potentially , assuming LIV stays around a while. I get the sense Koepka and Rahm would go back tomorrow if the package made sense

 

[CrashTestDummy]

They had no choice, for guys like Tiger it was simply a thank you for not screwing us royally, and he could have. But otherwise if LIV players are going to join the PGAT again like every LIV player and fan wants, this had to be done, can't have LIV guys who can barely make cuts on the PGAT tour with bags of riches teeing it off with guys who are real contenders but eating Ramen every night, that was never going to work, big problems, this sort of maybe makes those guys more malleable, a new house paid with cash works wonders for a persons attitude in life.

I don't like it either, but obviously they had to do it.

I do think there is some truth to that. That PGA would have been really in a bad spot if Tiger and/or Rory left for LIV and the money was some sort of compensation for that. However, Tiger has been involved a lot in the PGA-LIV deal, so that could have been a factor to Tiger's big payout as well.

A ‘Very Engaged’ Tiger Woods Hosted PGA Tour/PIF Bahamas Meeting and Played Golf With Yasir Al-Rumayyan - Sports Illustrated

All six Tour player directors attended the Monday meeting, which Webb Simpson classified as friendly in learning about the Public Investment Fund’s intentions.

www.si.com

 

[Augie53]

Breezed through the comments in this thread but I'm not sure many of you understand what this is about. The PGAT is not just cutting checks to players to buy their loyalty. This is an equity grant program with vesting. PGAT Enterprises is giving the players ownership interest by issuing equity shares. The dollar values you are seeing reported is based on the current valuation of those shares, which will change over time, hopefully increasing in value as PGAT Enterprises grows. Shares issued were based on a formula that took into account past performance and other variables, hence why there are equity payouts to some of the retired legends of the game that built the Tour like Nicklaus.

The vesting of these shares takes place over 8 years and the players have to hit certain metrics in order to vest.

Future shares will be issued annually based on player performance. So there are opportunities for guys like Scottie to earn even more. Opportunities for new players like Aberg to earn shares based on his career performance. Opportunities for future PGAT players not even on Tour to someday share in ownership of the Tour.

I think this is brilliant and a very good thing. Every player receiving shares, and future Tour players, now have a vested interest as an "owner" of the Tour. It's the players' tour and they are the owners in a partnership. They now have a vested interest in the long-term health and financial success of the PGAT which should make for a better Tour and a better product for us fans.

Think of it like this, the Tour players now have a stock option program.

 

[MtlJeff]

Breezed through the comments in this thread but I'm not sure many of you understand what this is about. The PGAT is not just cutting checks to players to buy their loyalty. This is an equity grant program with vesting. PGAT Enterprises is giving the players ownership interest by issuing equity shares. The dollar values you are seeing reported is based on the current valuation of those shares, which will change over time, hopefully increasing in value as PGAT Enterprises grows. Shares issued were based on a formula that took into account past performance and other variables, hence why there are equity payouts to some of the retired legends of the game that built the Tour like Nicklaus.

The vesting of these shares takes place over 8 years and the players have to hit certain metrics in order to vest.

Future shares will be issued annually based on player performance. So there are opportunities for guys like Scottie to earn even more. Opportunities for new players like Aberg to earn shares based on his career performance. Opportunities for future PGAT players not even on Tour to someday share in ownership of the Tour.

I think this is brilliant and a very good thing. Every player receiving shares, and future Tour players, now have a vested interest as an "owner" of the Tour. It's the players' tour and they are the owners in a partnership. They now have a vested interest in the long-term health and financial success of the PGAT which should make for a better Tour and a better product for us fans.

Think of it like this, the Tour players now have a stock option program.

I wasn't aware that this payout was as an RSU of sorts or it had an 8 year vesting---thanks for that info

I was aware they were looking to do that, but didn't know these payout were in the form of shares

 

[Pharaoh]

The PGA tour is like 6 months away from announcing shotgun starts and 54 hole tournaments....

I know why they are doing all of this.....it's just very funny , and you have to poke fun at them for it, because they are basically doing everything they criticized LIV for doing in their heavy-handed, beat you over the head consulting firm comments of 2022 and 2023.

"A cut is essential!"
"We've added several new elevated no-cut events"

"We only eat what we kill"
"Here's 100M to a guy who's played like 7 total rounds in the last 2 years"

"We reward performance only! We're not an exhibition tour"
"So, we're introducing this thing called the PIP"

Like , can we just get shotgun starts on the PGA tour this year and skip a few steps?

1) You have to qualify for elevated events. You don’t just get to show up and collect. You have to be in top rankings.

2)They are paying out lifetime achievements. It’s money for having success on the tour. The only question is what will Scottie’s be now with his run of success.

2) PIP existed way before LIV. Tiger always led that followed by usual suspects. The PGA did this to increase social media presence. If anything LIV copied the PGA tour.

 

[MtlJeff]

1) You have to qualify for elevated events. You don’t just get to show up and collect. You have to be in top rankings.

2)They are paying out lifetime achievements. It’s money for having success on the tour. The only question is what will Scottie’s be now with his run of success.

2) PIP existed way before LIV. Tiger always led that followed by usual suspects. The PGA did this to increase social media presence. If anything LIV copied the PGA tour.

- 1 is a valid point, but the tour did still make a big deal of the cuts being important and then right away added a bunch of no-cut events, all the while relying on clever wording in the OGWR rankings to act a bit superior (the majority of events needed to have a cut in order to qualify for OGWR--PGA met that criteria, but many of the elevated events did not, which was kind of funny---by the OGWR's terms the PGA basically qualified on the strength of lower tier events)

2) This is pretty much what LIV did, they paid people for success on tour, just not their tour. Not much different than a company paying you for experience you got at another company

3) PIP started in 2021

 

[Pharaoh]

- 1 is a valid point, but the tour did still make a big deal of the cuts being important and then right away added a bunch of no-cut events, all the while relying on clever wording in the OGWR rankings to act a bit superior (the majority of events needed to have a cut in order to qualify for OGWR--PGA met that criteria, but many of the elevated events did not, which was kind of funny---by the OGWR's terms the PGA basically qualified on the strength of lower tier events)

2) This is pretty much what LIV did, they paid people for success on tour, just not their tour. Not much different than a company paying you for experience you got at another company

3) PIP started in 2021

1) PGA had multiple players poached early. It only made logical sense to offer opportunities for more money but not by simply raising every event but rewarding those that were ranked high in the PGA standings. Quite different from just getting a big lump sum to join right off the bat.

2) PGA rewarding its members for remaining loyal is simply logical. Many members gave up lots of money by staying loyal. I hardly see anything wrong with them rewarding the members as long as it’s actually done fairly.

3) Started 2021. It was created in early 2020. Prior to LIV. Phil got second to Tiger the first year.

 

[CrashTestDummy]

All the PGA Tour players should be thanking Phil Mickelson big time for their new found wealth. He was right all along and was torched for saying it.

 

[Hacker67]

When do the DPWT players start seeing the loyalty money after signing the strategic alliance? I bet they're kicking themselves for not just adopting LIV like LET adopted the Aramco Series. No wonder Pelley bolted.

At least we still have all the top players together on the women's side, can't say that for the men.

 

[tequila4kapp]

Wasnt the big issue most had with LIV was where the money came from, not necessarily the dollar amount?

No, it wasn’t just that. Many hate LIV because it isn’t purely merit based competitive golf. This payout structure puts a dent in that PGA armor. Now the only thing the PGA fanboys have is 54 vs 72 holes…as if anything about the PGA tour is sacrosanct anymore - PGAT will switch to 54 holes if LIV Steals a few more key guys and holds out a little longer; they might even market it as a way to extend key guy’s careers (looking at you Tiger)

 

[WLG1952]

I enjoy watching LIV golf, but it is and always will be a 2nd tier tour. Casual fans do not watch LIV.

Fair enough.

Me, I don't differentiate between golf tours. I watch golf solely for the golf shots the professionals hit. It doesn't matter what tour, or who's hitting the ball. I include the LPGA too.

It also doesn't matter who is providing the tv coverage. Right now. I'm watching the best shots on this week's LIV. tour's rounds 1 & 2 on You Tube.

 

[Phil75070]

And to think, this all could have been avoided had Monahan not blown off Norman and the LIV people and had worked out some type of compromise.