It's really going great when you are asking the tournaments to pony up more money!
PGA Tour Tournament Officials See Trouble Ahead As Costs Spiral
Events will have to fund the Tour's higher purses in 2025; one tournament director told Sports Illustrated that sponsors are 'saying they won't do it.'
The PGA Tour finds itself in the throes of a harrowing time in its history, dealing with the realities of a rival that has driven the cost of business to levels that go beyond what it can handle.
And while the Tour is in the midst of negotiations with the DP World Tour, Public Investment Fund of Saudi Arabia as part of a
framework agreement—as well as potential other private equity firms that could potentially invest billions in a new for-profit entity—the decades-old nonprofit PGA Tour Inc. is having to make some tough decisions about how to fund purses.
That’s because the money that comes into the new venture can’t go to the old one.
"They have made it clear that none of the money will flow to the tournaments," is how one tournament official, who wished not to be identified, described the situation.
That puts the Tour in the position of courting billions while skimping to pay millions.
All of this is being discussed this week at annual meetings involving PGA Tour tournaments in Palm Springs, Calif.
And tournaments are well aware of what is being asked: that starting in 2025, they contribute a bigger portion to PGA Tour purses than they currently do.
https://www.si.com/golf/news/pga-tour-tournament-officials-see-trouble-ahead-as-costs-spiral