At the end of August, PGA Tour Commissioner, Jay Monahan, announced a number of changes that will reshape the face of its Tour for years to come. Within those changes, many of which were either scheduling or money-related, some questions came out, with several wondering how the PGA Tour would afford of all this...
Well now, Commissioner Monahan has explained the situation, with the 52-year-old stating: “The money comes from three sources. One, I would say for this year... that we’re in, the Tour is having its strongest year in history of the PGA Tour and is performing well ahead of budget.
The PGA Tour recently announced a new media rights deal which came into effect in 2022. The deal is reportedly running until 2030 and will be worth billions of dollars
“Secondly, as you’ve heard me talk about before, the Tour through the years has been very prudent in managing its finances and building reserves and being in a position to be able to invest in programs that are going to help the Tour grow. That’s what they’re there for, and that’s what we’ll continue to use them for.
“I would say additionally our partners, our sponsors and all of our partners who want to get behind and are getting behind the direction that we’re going in, want to be a part of the continued growth and evolution of the Tour.
"They recognize that with the changes we’re talking about today, the changes that we’ve made prior to today, and the direction we’re heading in, we’re going to be creating more value. When you create more value, you’re going to get more income coming into the business.”
What are the main changes you ask? Well, there is the introduction of four elevated events which will carry a minimum purse of $20m each. This means around a $46m addition to the total purse for 2022/23.
Along with the elevated events, there is the expansion of the Player Impact Program, which will reward the top 20 players with an increased pool of $100m, as well as the PGA Tour's 'top players' committing to a 20 event PGA Tour schedule per year.
Rory McIlroy and Tiger Woods recently announced the launch of a technology focussed golf league that will begin in 2024
The changes will indeed benefit a number of players. However, LIV Golf's backing from the Public Investment Fund is said to have assets of over $620bn.
During the announcement, Monahan was asked the question about LIV's funding and if they were to double what they're offering what would happen. His response? Well, it seems his idea is clear, as the Commissioner said: “I’ve been pretty consistent throughout that, for us, where we’re competing is with our product, and our product is our schedule."
He went on to add: “We’ve made some strong enhancements to that for top players and for our entire membership, coming into this year and certainly as we go into 2023. When you look at our schedule, the value of our platform and what players can achieve off of that platform based on their competitive success and the values that are conveyed through that platform.
"That coupled with some of these financial programs, when you look at being a member of the PGA Tour and you look at the financials moving forward, you can earn a tremendous — you can have a tremendous career. Your earnings potential is extraordinary."
