TLDR:
- The PGA Tour finalized a deal for $1.5 billion investment into PGA Tour Enterprises
- PGA Tour players will receive equity grants based on loyalty and performance
In a recent development, PGA Tour players are set to find out the value of equity grants they will be receiving as part of an investment into PGA Tour Enterprises. The equity grants are based on loyalty and performance, with high-performing players receiving a greater stake in the company.
The grants are divided into four groups, with the top 36 players receiving the highest value grants, followed by steady performers and up-and-comers, players who have won tournaments, and past legends. The grants will vest over an eight-year timeline, with players needing to provide services each year to ensure the equity vests.
Recipients must be eligible and living to receive the grants, and they will be taxed on the vested equity. The PGA Tour aims to align players’ interests with the growth and success of the Tour, encouraging them to think like owners and contribute to the long-term health of the organization.
Furthermore, starting in 2025, additional grants will be awarded to top performers each year based on career points and Player Impact Program results. The PGA Tour hopes that this program will inspire loyalty, ownership mentality, and shared success among its players.