McKINNEY, Texas – On April 24, PGA Tour pros competing in the pro-am at the Zurich Classic of New Orleans couldn’t stop checking their phones. The reason? To tap refresh on their email and see if their notification of how much they had been allocated of $930 million in player equity shares that were divvied up to nearly 200 Tour members, or as one player put it, “Christmas in April,” had arrived.
Commissioner Jay Monahan originally detailed the Tour’s first-of-its-kind equity ownership program in a Feb. 7 memo to players. And it was why players experienced an uncontrollable urge to check their phones during play; it was so egregious that the Tour sent pros a memo reminding them of its phone usage policy.
Everyone wanted to know how much their loyalty was worth. The Telegraph reported Tiger Woods was to receive $100 million in equity and Rory McIlroy $50 million from a tier in which 36 players reportedly split $750 million. When McIlroy was asked at the Zurich Classic how much would make players feel validated for their decision to stay with the PGA Tour, he said, “I think the one thing we’ve learned in golf over the last two years is there’s never enough.”
We talked to a wide array of pros at the CJ Byron Nelson last week to find out how the rollout went and how they feel about being shareholders in the Tour’s new for-profit entity.
Chesson Hadley: 'The basement pays pretty good'
One of those players who had his phone out and received a memo with good news was Chesson Hadley. Last June, he was the first-round leader at the RBC Canadian Open after Tour Commissioner Jay Monahan stunned the world by announcing the framework agreement with Saudi Arabia’s PIF. Hadley, 36, remarked at the time that he would like to be compensated for his loyalty and the one-time Tour winner, ranked No. 297 and with earnings north of $12 million, was crucified for it.
“I chose the wrong pronoun. I said ‘I’ and people thought I was trying to be like I’m some world hero, golf hero that deserves it. I’m very aware of my career compared to the big fish who have stayed, I’m very aware of that,” he said last week ahead of the CJ Cup Byron Nelson.
“The basement pays pretty good. I have a good view from the basement.”
Hadley was pleased to receive his shares, something he said all players who finished in the top 125 in the FedEx Cup point standings received and noted that he was “blessed to be in the right place at the right time.”
“Some people deserve more, some people didn’t get any that probably should have but it’s not a perfect system,” he added. “It will be curious what the Tour looks like in 10 years. There’s never been a major sports association that hasn’t gone up in value, right? They keep growing. Teams like the Dallas Cowboys are worth $6 billion now and 10 years ago they were worth $3 billion. Hopefully, that’s the trajectory of the PGA Tour and everybody’s equity grows.”
Asked if being a shareholder in the Tour changes his view about LIV players returning, he said, “It makes me want some of them back more. My piece goes up immediately if Jon Rahm comes back. The Tour is instantly more valuable if he comes back. I would think my equity goes up if PIF becomes an investor but I don’t know.”
Adam Scott: 'I don't think anything the PGA Tour is doing right now is about spending time looking in the mirror'
As a player-director on the Tour’s policy board, Scott, 43, has had an intimate view of how the sausage has been made in forming the for-profit entity and dishing out shares in the new venture.
“Honestly, I’ve really only heard of a couple of disappointments from some people who didn’t receive any. Of course, you’d be disappointed if you thought you were going to get some equity or a grant and you didn’t,” he said, noting that no one had directly approached him but that’s what he had heard through the grapevine. “I don’t think there are any holes in the system that was devised. I was asked should Jack Nicklaus get the most? I don’t think anything the PGA Tour is doing right now is about spending time looking in the mirror. It’s about building a Tour for the future.
“Grants to the legends category was correct and I just don’t know how far you can go in giving grants to players of 20 years ago, for example, when it is more about now and looking forward.”
Scott said he wasn’t sure how big a carrot the shares would be for players but called it a “gift,” a “perk,” and a “bonus.”
“It’s not exactly the same as the retirement plan but I think it is an additional perk of being a Tour member and having a stake in the business,” he said. “In the years going forward, hopefully the business goes well and this equity is a real bonus.”
Does he expect player equity to discourage more players from jumping to LIV Golf for lucrative guaranteed contracts?
“I don’t think it was designed as a retention tool if you want to call it that,” said Scott, fifth on the career earnings list with more than $64 million in earnings. “I think the guys who have stayed so far will have a longer-term view of things and will appreciate what the equity is and not just throw that away and leave.”
Jordan Spieth: 'I think it's very confusing'
Spieth, age 30 and seventh on the all-time career money list with $62 million, is a fellow player- director on the Tour policy board. He was asked about the player equity program during his pre-tournament press conference.
“I had a couple players call me and say, wow, I didn’t know — they were excited about what their grants — I don’t know what their grants were. They were excited it was more than they thought it was,” he said. “I had conversations all the way back to even maybe just into the new year with some guys who missed out on it that would’ve made it other years. So I heard both sides.
“As far as the roll-out, I believe that it was made very clear to everybody that if anyone was confused in what it meant, how was it coming, and the roll-out specifically, there was PGA Tour officials every week that could sit down and explain any time anybody wanted to. I thought that was a good idea. I think it’s very confusing. It still is confusing for us players on when it’s vested, what’s the best idea for taxes, you know, stuff that we don’t — we all have people for that. That’s not what any of us do and it’s fairly complicated.”
Matt Kuchar: 'It feels like you're a shareholder now'
Kuchar, 45, is 10th on the all-time money list with earnings nearing $60 million. He said he’s kept a low-key, head-down approach to the player equity plan.
“It feels like you’re a shareholder now. It’s kind of cool to be an investor in the original new entity, whatever that is,” Kuchar said, but added, “I don’t get real excited until the deal is done, until the money is in your account. I reserve some of the excitement until the deal is done. It’s a nice bonus.”
Kuchar has always been a good soldier for the Tour, willing to do a media interview, shake hands with sponsors, stop by a tent after the round. Asked if being a shareholder will make him more willing to do more, he said, “I feel like I have a good rapport with fans and they like that I smile and I look like I’m enjoying myself out there. I feel like that has gone as far for me financially as good golf has. That’s a way I’m an asset to the Tour. I’m fortunate that fans want to holler my name. Am I going to start a social media presence? I probably have such a tainted view of social media that it would be tough for me to actually be the one that does it, maybe if someone else does it on my behalf, maybe if that helps the PGA Tour and the stock, maybe. It’s a neat incentive to think about it as a shareholder if you can do something to help the Tour, you can also help yourself. It’s an incentive, for sure.”
Kuchar said his stake was what he expected. He didn’t have any problems with how it was handled but did express some disappointment with the signature event sponsor invites, particularly with the RBC Heritage, where he was a past champion. “I had high hopes on that one. That’s the one I thought I stood my best chance. I was bummed out. I thought I did the things you were supposed to do. A couple of days of being disappointed went away and I realized best to earn them,” he said.
[Kuchar learned on Sunday that he had received an exemption into the Wells Fargo Championship.]
Mackenzie Hughes: 'I wasn't waiting for a handout'
Hughes, 33, has been a refreshing voice speaking out on the greed in the game during these turbulent times. He’s earned more than $15 million during his career and the player equity program wasn’t something he was spending too much time thinking about given the number of years before a player can vest.
“I think they could have done a better job. Some people have to vest for eight years and some guys don’t. You have to play 15 events but there are other guys like Tiger who isn’t going to play 15 events; he’s going to vest in other ways. That option isn’t going to be available for others. To me there are so many questions and loopholes,” Hughes said. “It’s not money that I expected. I wasn’t waiting for a handout, let’s put it that way. If it turns out to be something nice, great, but I haven’t put much thought into it.”
Austin Smotherman: 'I better check my spam'
Smotherman, 29, is playing this season out of the Nos. 126-150 category and splitting time between the PGA Tour (five starts) and Korn Ferry Tour (three starts) this season. He’s earned nearly $2 million on Tour during his three seasons. More than a week after the majority of players had received word about their equity ownership, Smotherman still was in limbo.
“I haven’t seen anything yet,” he said. “I was a full-status guy at one point, do I get any? Even if it is half of a half of a percent.”
He smiled. “I guess I’ve got to check my spam.”
But even Smotherman took solace in knowing that the program has an additional $600 million in equity grants that will be awarded in amounts of $100 million annually starting in 2025.
“Play better and there’s more equity to be had,” he said.
