⛳ PGA Reveals $930m Player Equity Grants, and More.
⛳ PGA Reveals $930m Player Equity Grants, and More.
Let's look at how the PGAs new SSG money will be getting distributed to players.
Welcome back to the Baller Golf newsletter.
Following last week's news of the PGA deal with SSG, we now have some meat on the bone about how some of that money is going to be used.
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Section 1: The Tee Off - Key stories from the world of golf.
PGA Tour Reveals Key Details About $930m Player Equity Grants
In a memo released to players on Wednesday, the Tour outlined how an initial $930m in equity will be distributed, with players - current and past.
Around $750m - will be given to the game's top 36 golfers based on
“career performance, last five-year performance and Player Impact Programme results”.
Tiger Woods must be happy 🤑
Read more on this further down the newsletter 👇
Saudis threaten prison time for aiding PGA-LIV probe
According to a report by Bloomberg News, the PIF sued its advisers in a Saudi court last November preventing them from sharing information with the U.S. Senate Committee on Homeland Security and Governmental Affairs.
Banker Michael Klein and representatives of consulting firms McKinsey, Boston Consulting Group (BCG) and Teneo Strategy faced lawmakers and pled their case for not cooperating.
'The PIF has been explicit that the disclosure of information relating to BCG's work for PIF is a violation of Saudi law, which "imposes criminal penalties for disclosing or disseminating such information including imprisonment for a maximum of 20 years,''
BCG's Rich Lesser said in prepared testimony.
'We risk criminal and financial penalties for the firm and for individuals working or living in Saudi Arabia.'
Talk about being stuck between a rock and a hard place 😳
Tiger Woods to play first PGA Tour event of 2024: Genesis Invitational
Woods is expected to play one event per month in 2024.
The 48-year-old says he is "excited" to be playing at the Genesis Invitational, which he hosts, and which starts in California on Thursday, 15 February.
It’s always a buzz to see Tiger back out there.
Cristobal Del Solar shoots record 13-under-par 57
Del Solar carded two eagles and nine birdies in the opening round of the Korn Ferry Tour event on the Pacos Course at the Country Club de Bogata in Colombia.
There’s been a lot of discussion around this and unfortunately a lot of negativity. People saying things like “it was a short course”, “it was high altitude”, “perfect conditions for a pro to hit a low score”, and so on.
Maybe those are justified for making it an easier opportunity but is this really where golf culture has got to?
So what if the conditions were the perfect storm. He was still the only one to do it, if it were so easy, why didn’t they all do it?
Congrats to Cristobal, 57 on a tour is a great achievement.
Lucas Glover missed tee time: WM Phoenix Open.
Glover, who has never missed a tee time in his PGA Tour career, was scheduled to tee off at 8:26 a.m. and was in his hotel room when officials called and told him he had one minute before he had to tee off. Sadly, he had to pull out of the competition.
Glover told Golf Channel.
“I just misread my text messages”
“I’m kicking myself but laughing at myself at the same time.”
It must be frustrating but it happens, golfers are human. Sounds like he’s taking it well.
Section 2: The Business of Golf - Business news from the golf industry.
PGA Tour Allocates $1.5 Billion: Here's the Distribution Plan
PGA Tour Commissioner Jay Monahan unveiled details regarding the monumental $1.5 billion investment, shedding light on how equity shares will be distributed among players.
In a significant move, a total of 193 players will be the beneficiaries of equity grants from PGA Tour Enterprises. Among them, 36 top-tier players are set to receive the lion's share of the grants, amounting to a staggering $750 million, which represents over 80% of the initial grant pool. Notably, this elite group includes iconic figures such as Tiger Woods and Rory McIlroy, whose illustrious careers and substantial contributions to the sport have earned them a spot in what's referred to as "Group 1."
Following this elite group, a larger cohort referred to as "Group 2" will comprise 64 players, with their grants totalling $75 million. These grants will be allocated based on the players' performance on the PGA Tour over the past three years. Meanwhile, "Group 3," consisting of 57 players, will receive grants totalling $30 million, primarily based on their fully exempt status as Tour members. Additionally, "Group 4" will encompass 36 players recognized for their instrumental role in shaping the modern PGA Tour through their career performances.
It's worth noting that each eligible player is entitled to receive only one grant, despite potentially qualifying for multiple groups. To ensure the vesting of their grants, players must meet certain participation requirements, such as competing in a minimum of 15 events on the PGA Tour annually or fulfilling obligations proportional to the value of the grant they receive.
While most players may have a general understanding of where they stand, there may be some uncertainty, particularly for those on the cusp of qualifying for the more lucrative Group 1. I expect lawyers will be getting involved.
The PGA Tour has convened players' meetings and plans to provide comprehensive information on eligibility, taxation, benefits, and other pertinent details over the next six weeks. Additionally, players can expect to receive updates on their standings within the ranking of groups following the Players Championship.
The additional $600 million of the $1.5 billion total will be distributed through recurring grants starting in 2025. These additional grants, totalling $100 million annually, will be awarded based on performance metrics such as the Player Impact Program, offering top-performing players the opportunity to receive further rewards.
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