It never ceases to amaze how the PGA Tour collects nearly $2 billion in revenues yet remains a not-for-profit entity.
And boy does the PGA Tour have some dirty little secrets embedded in its 100-plus pages of form 990, the IRS form for 501 (c) (6) organizations that typically include Chambers of Commerce, real estate boards and business leagues that are “created for the improvement of business conditions.”
In the case of PGA Tour, Inc., you have an organization that has announced staff layoffs despite those billions in revenues, a $1.6 billion stock portfolio, $686.1 million in “other securities” and net assets of $1.153 billion.
A quick glance at the Tour’s form 990 also has some real eye-openers:
Kevin Streelman receives $1,412,729 for being a Player/Director. Wow, and he doesn’t even have to win anything.
But wait, there’s more.
Charley Hoffman is a nice guy but would you pay him $1,376,291 to be a Player/Director? The Tour does.
Johnson Wagner hauls in $735,716 as a Player/Director. Seriously?
Player/Director? Heck that’s a better job than being a U.S. Congressman or Senator.
We wonder if Davis Love III doesn’t feel a bit under-appreciated — he only makes $389,480 as a Player/Director but he’s been hauling in that extra loot for a lot of years now.
And what about Ye Olde Sheriff Of Nottingham — aka Tour Commissioner Jay Monahan? The Sheriff collects compensation of $7,443,295.
Keep in mind all of this was on the 2018 filing, the most recent one available.
But wait! There’s more!
Retired commish Tim Finchem was paid $817,218.
Charlie Zink, one of the higher-ups has retired and was in charge of the President’s Cup — Charlie collected $2,842,046. (Charlie was a junior golfer in the late 60s in the suburban D.C. area).
Ed Moorhouse was an attorney who worked for the Tour for a long time (30 years) and his last role was described as “Senior Advisor, Office of the Commissioner.” Well Ed’s enjoying retirement, he received a whopping $7.443 million payout in 2018 as he exited the building.
So you’ll have to excuse us if we say “Shame On You” to the PGA Tour for those announced 50 layoffs.
The Tour’s revenues keep going up as well.
In 2015 they totaled $1,225,727,119.
In 2016 that went to $1,280,738,913.
For 2017: $1,470,476, 971.
As mentioned at the top, the 2018 number was $1,922,409,658.
We’ll leave it to your imagination to figure out the 2019 and 2020 revenues. Although 2020 might tip a bit, you know, COVID-discount.
The Tour has a LOT of people working there hauling in north of $1 million a year.
What it all means is that there are some pretty nice gigs going on up there at the palatial PGA Tour headquarters in Ponte Vedra Beach. And there are some really good gigs that don’t require you to work in the palace — just ask Streelman, Hoffman and Johnson Wagner. For Davis Love III, it’s been a long, reliable, fat gig.
What’s evident from its financial firepower is that weathering this COVID-19 thing is really no big deal although the Tour might want you to feel otherwise.
Which brings us to this week and the path tof $15 million for some lucky guy and a total $60 million in FedEx money being divvied out for other well-to-do members of the PGA Tour.
With all the problems out there, the PGA Tour simply doesn’t have any. There’s an old saying — “If money can solve all your problems — you have no problems.”
The PGA Tour has no problems.
If you love reading tax returns, you’ll love pouring through the tour’s return.
It tells the truth about how fat and happy the Tour really is.
8 Comments
baxter cepeda
I think what your trying to say is maybe we should be getting on Monahans good side ?
Tom Edrington
I think everyone that sees this will say: “hey I just wanna be a Player-Director for one year!
wayner
Are you sure that those numbers for Player-Directors do not also include tournament earnings? Streelman and Hoffman each earned about $1.4M on the tour in 2018 according to PGATour.com. Wagner was $700k. Those numbers are very close to what you report from the form 990.
Form 990 is likely calendar year 2018 earnings whereas I assume the PGATour info is for the “wraparound” season
If you look at the 2017 Form 990 you will see that Hoffman earned $4.36M and in 2017 his tour earnings were $4.16M.
Tom Edrington
It appears they were given a separate 1099 for their “Player-Director” earnings…..I do know Davis Love III was receiving in the neighborhood of 500k when we reviewed it a year ago.
larry260
Where would they be IF they had to pay at least minimum wage to everyone that works at their tournaments….heck they even CHARGE people to be volunteers….then tell them they are getting a shirt and hat (which is a uniform they must wear like a lot of jobs)….I think every volunteer who stands out on the course for 5 to 7 hours or drives people around for 8 hours should be given a copy of what some of these PGA people get paid….example, I was marshaling at a PGA tournament in 90 degree afternoon weather and the guy working with me went over and grabbed a gator aid out of a cooler we had been keeping ice on and full of drinks all day for the caddies and players and he gets yelled out by some idiot sitting a cart with PGA stickers on it, that is for players not marshals…needless to say they were two marshals short the next day.
Tom Edrington
Larry: The volunteers have to BUY those uniforms and they charge them retail!
baxter cepeda
A lot of these greedy practices are left overs from much more humble times for big time golf.
To be fair At pebble for the usga I heard the same type stories from volunteers. Even for lpga events, people jump thru hoops to volunteer for 20$/day events. When You can often get free tix.
Changing topics a bit…
Many golf events in hot weather do not provide water for paying fans.
Walking around cordavalle for the women’s US open when Anna won I literally thought fans were just gonna start dropping from heat stroke; including myself. They were better at Pebble with that but not much, usga had one main area to get hydrated.
We spent that day at the us women’s open trying to stay alive while not getting price gouged for water. Of course you cannot go in with water. Convenient.
It’s all really disappointing; The golf tours need to start Taking better care of their volunteers and fans; hopefully things change when normalcy resumes.
The tours are spending ridiculous money for unreliable corona testing, but then get cheap with water for fans, volunteers; and now with their long time staff…all while the Commish makes 7 million.
Despite all the money Making volunteers spend money and not providing water to paying fans is shameless. But again, it’s not just the pga tour…It’s all of them.
All except the Masters of course …patrons don’t even think about water because everything it is so fairly priced. Volunteering at the Masters is challenging but seems well worth it talking to those guys.
At the masters Everyone is excited to buy things because everything is so reasonable. Patrons end up spending fortunes and having a great experience.
It’s funny how everyone knows The Masters are the best, golf or anything, but no one really goes out of their way to copy that fan experience model. Except Maybe little league baseball.
Paying the pga tour players board seems like a conflict of interest. I know the players board isn’t a players union but it feels like if Goodell Cut checks for nflpa pres JC Tretter.
I definitely learned something in this article. I always thought those players did that out of the goodness of their hearts…Boy was I wrong.
Tom Edrington
A lot to absorb there Baxter, kind like the tour’s tax, or should we say “non-tax” return…..Yeah, volunteers should quit volunteering…at the least, they should get their uniforms gratis….instead, they charge them retail…no, I agree with all your observations….yes, Augusta DOES value its patrons….a tradition unlike any other….for sure.