Tiger Woods to receive $100 million from new PGA Tour equity program

Tiger Woods is the main beneficiary of the PGA Tour’s Player Equity Program (PEP). This is one of the first results of the alliance with Strategic Sports Group (SSG) and will bring Woods a nice sum of $100 million.

In a groundbreaking move, the PGA Tour has launched the PEP, a historic initiative that rewards loyalty and aligns the interests of players and fans. By offering equity stakes in PGA Tour Enterprises, the program aims to bring the world’s best golfers together on iconic courses, delivering memorable competitions while maximizing fan interest and enjoyment.

According to the data released so far, Tiger Woods is expected to receive $100 million, while Rory McIlroy is expected to receive $50 million. Other players such as Jordan Spieth and Justin Thomas will receive around $30 million.

The payments will be spread over an 8-year period, with 50% being paid in the first four years. In Tiger Woods’ case, it would be $50 million by 2028.

PEP: Why is Tiger Woods the main beneficiary?

Tyler Dennis, PGA Tour’s Chief Competitions Officer, called the PEP “a historic moment for the PGA Tour.” And he’s right—there’s no other sports league globally where athletes own a significant share of their own sports organization.

Here’s the scoop: PGA Tour Enterprises, the newly-created for-profit entity, houses the PGA Tour’s commercial assets, including sponsorships and media agreements. The $1.5 billion investment from the SSG fuels this venture.

But what about the players? Well, eligibility for the PEP is based on a mix of factors: on-course performance, historical contributions to golf, and participation in PGA Tour-sanctioned events. Players must maintain eligibility by meeting specific requirements. Equity grants will be ongoing, reflecting both on-course performance and off-the-course impact on fan engagement.

Once you know these criteria, it’s no mystery why Tiger Woods is the player who meets them the most and the best.

The $930 Million Breakdown

The PGA Tour’s official communication outlines the initial $930 million in equity grants. Let’s break it down:

• Group 1: $750 million in aggregate equity, granted to 36 players based on career performance, last 5-year performance, and Player Impact Program results.
• Group 2: $75 million in aggregate equity, awarded to 64 players based on the last 3-year performance.
• Group 3: $30 million in aggregate equity, given to 57 players with certain fully-exempt PGA Tour status categories.
• Group 4: $75 million in aggregate equity, recognizing 36 players instrumental in building the modern PGA Tour.

 Additionally, another $600 million will be distributed through recurring grants, rewarding top performers year after year.

The equity payments seek to reflect Tiger Woods’ and every other player’s impact on the game and their commitment to the PGA Tour. But it’s not just about the superstars; all PGA Tour members are eligible for recurring grants, ensuring a fair distribution.

While the PEP promises exciting changes, questions remain about Saudi Arabia’s Public Investment Fund (PIF). Will it play a role in this for-profit venture? The PGA Tour’s partnership with SSG allows for potential co-investment from PIF, but antitrust regulations and ongoing investigations add complexity. Regardless, the PEP marks a new era—one where players, fans, and the game itself win big.