In 2021, LIV Golf announced its arrival on the golf scene. Backed by Saudi Arabia's Public Investment Fund (PIF), the new league quickly set its sights on the PGA Tour. Namely, LIV went after some of the biggest names in golf. The PGA Tour admonished the players who jumped ship, including big names like Phil Mickelson, Dustin Johnson, and Jon Rahm.
Some PGA Tour players, notably Rory McIlroy and Tiger Woods, spoke out against LIV, believing it was a detriment to the sport. Their loyalty was put to the test when the PGA Tour and LIV announced last year that they were planning to join forces.
Financial Rewards for Loyal Players
Several months later, those players are being rewarded for their loyalty. According to The Telegraph, the newly formed PGA Tour Enterprises — which received a big cash infusion from Strategic Sports Group — will pay nearly 200 players a total of close to $1 billion. This considerable sum represents a significant shift in financial dynamics within professional golf.
Woods and McIlroy are the big winners financially. Woods will receive about $100 million, while McIlroy will make around $50 million. Other prominent players like Jordan Spieth and Justin Thomas will each receive $30 million, and another $75 million will go toward retired players.
Distribution of Funds Among Players
The top 36 players, based on popularity and career performance, will get a collective $750 million, while other players will also collect smaller amounts. The PGA Tour received funding to provide an additional $100 million in payouts over the next several years.
However, this money has a bit of a catch. Players must remain loyal to the PGA Tour, and the equity will vest over the next eight years. Golf.com noted that the equity will be paid out evenly, which means Woods will make $12.5 million per year while McIlroy earns $6.25 million annually.
Potential Changes in the Landscape of Golf
These payouts could all change in the coming months and years. The PIF has dished out a TON of money to LIV Golf participants. If the two golf leagues reach an agreement, PGA Tour players would likely receive a lucrative windfall. This potential for change keeps players on their toes and highlights the evolving nature of professional golf.
For now, those players can breathe a sigh of relief. It took a while, but they were finally rewarded for their loyalty. The financial landscape of golf is rapidly changing, and players must stay informed and adaptable to navigate these new waters.
As we look forward, it will be interesting to see how the relationship between LIV Golf and the PGA Tour evolves, and what this means for the future of the sport and its players.
