The PGA Tour continues to answer potential threats to its future enterprise by growing the cash its gamers are paid all year long. In line with a memo written by PGA Tour commissioner Jay Monahan obtained by No Laying Up, the the FedEx Cup, Participant Impression Program and a handful of tournaments are all seeing monetary overhauls in 2022.
Listed below are the main points.
- FedEx Cup bonus going from $60 million pool to $75 million pool
- FedEx Cup winner getting $18 million (beforehand $15 million)
- FedEx St. Jude Invitational and BMW Championship purses going to $15 million (beforehand $9.5 million)
- Genesis Invitational, Arnold Palmer Invitational, the Memorial Event and WGC-Dell Applied sciences Match Play purses going to $12 million (beforehand $9.3 million)
- Participant Impression Program shifting from $40 million pool to $50 million
- Comcast Enterprise Tour Prime 10 going from $10 million pool to $20 million pool
- Whole event prize cash in 2022 going from $367 million to $427 million
- Common purse in 2022 shall be $9.1 million, which is up over $1 million from 2021
Monahan additionally detailed that PGA Tour gamers will obtain 55% of the Tour’s $1.52 billion in revenues in 2022. The opposite 45% will go to tournament-related bills, worker bills and TPC community bills.
This implies $838 million shall be distributed to gamers. Of that, 80% is within the type of prize cash, numerous bonus applications in addition to advantages for Tour members. The opposite 20% ($153 million) comes from advertising and marketing companions and company advertising and marketing companions (i.e. largely attire and tools firms) which is distributed to varied gamers, and Monahan expects that to double (!) over the subsequent two years.
Once more, all of this can be a response by the Tour to exterior threats just like the Premier Golf League — whose spokesperson, Andy Gardiner, defined the PGL’s enterprise mannequin on a current No Laying Up podcast — and the Tremendous Golf League, which is anticipated to evolve out of LIV Golf Investments, the place Greg Norman is the brand new CEO. LIV Golf Investments is pouring $200 million into the Asian Tour over the subsequent 10 years and needs an excellent league to develop from that place to begin.
All of that is extraordinarily complicated, even for these paying shut consideration. Essentially, the PGA Tour is trying to shore up its fortress partitions with myriad militia attempting to breach its exterior. Within the quick time period, this could work as a result of the Tour is pouring a ton of cash into the system. Whether or not there’s long-term sustainability there, and what that sustainability seems to be like, stays to be seen.
Nonetheless, Monahan stays assured in his product.
“We’re positioned to develop quicker within the subsequent 10 years than we have now at any level in our existence,” he wrote, “and we stay laser-focused on strengthening our core product and investing in our members.”