The PGA Tour increases in advance with the prize money being paid out around $500 million

The PGA Tour increases in advance with the prize money being paid out around $500 million

The PGA Tour lifts the portfolios higher in five of its biggest events, with two FedEx Cup playoffs now offering $15 million in a schedule that pushes prize money to nearly $500 million this year.

The increases, which include $12 million in the three inviting tournaments, were approved at a board meeting two weeks ago in Houston and outlined in a memo sent to players by PGA Tour Commissioner Jay Monahan on Monday.

“We are in a position to grow in the next 10 years faster than at any time in our existence,” Monahan said in the memo obtained by The Associated Press.

Monahan said the tour’s forecast is that 55% of revenue will go to players in prize money, bonus programs and other benefits. The $838 million allocated to players includes $32 million from the Reserve Fund.

The prize money from official events is up to $360.1 million. That doesn’t include the $75 million FedEx Cup, and it doesn’t include the majors, who are now falling behind on the regular PGA Tour events.

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Usually big companies don’t announce their bags until after the event is approaching. A year ago, the richest tournament was the US Open with $12.5 million. The PGA Championship purse was valued at $12 million, and the Masters and British Open gave $11.5 million.

The note was a year-end message delivered earlier than usual, in part due to an announcement earlier this month that a group led by Greg Norman and funded by the Saudi sovereign wealth fund plans to pump $200 million into the Asian tour as a move. Towards the creation of a promising global tour of secured fortunes.

Manahan did not mention the competing rounds in his memo.

The tour has already published a 2021-22 schedule which shows that most tournaments increase their prize money by about $1 million.

Board-approved updates include post-season events – the FedEx St. Jude Championship and BMW Championship – from $ 11.5 million to $ 15 million in prize money, which means that the winner will receive $ 2.7 million. That’s a boost from a $9.5 million portfolio a year ago.

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Also, prize money at the Genesis Invitational in Riviera, the Arnold Palmer Invitational in Bay Hill and the Memorial in Muirfield Village will come to $12 million, compared to $10.5 million previously listed and $9.3 million a year ago.

World Golf Championship – Dell Match Play will also receive a $12 million purse.

The average purse on the PGA Tour, excluding the four corresponding events, is approximately $9 million.

Besides the prize money, the total FedEx Cup reward ranges from $60 million to $75 million, with the winner taking home $18 million. The Comcast Business Tour Top 10 list, which offers rewards to the top contestants of the regular season, doubles its total bounty to $20 million.

Player Impact, which awards top players based on various media metrics, goes from $40 million to $50 million.

The tour said that $685 million of the $838 million earmarked for players will be player compensation such as prize money and bonuses. The rest goes to retirement and benefits plans.

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The increases come largely from a nine-year (network and digital) media rights deal worth approximately $7 billion that goes into effect in 2022.

“Over the past 20 months – as we have managed through the pandemic and restore our operating reserves – we have prioritized portfolio and overall profit growth across all FedEx Cup hubs,” Monahan said in the note, adding that the round was an “optimistic outlook” going forward.

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