Every sport now days has huge compensation plans but it does seem like the Tours retirement fund for their players is a very nice plan. I would be interested to compare the PGA tour to other major sports entities like the MLB and NFL. There are more players who would technically be on the top stage of their sports like the 150 guys are for the PGA so Iām not sure how the comparison would work but it does sound interesting.
Also besides getting injury deferment time to recover from injuries do PGA players have the option of Tour supplied health insurance or do they have to select a private insurer?
Thanks Austin - I wrote a piece a few months ago detailing the PGA Tour Retirement - it goes into some of what you are asking.
As far as health insurance - I am not aware of how that setup works. I know more about the caddie setup than player. Caddies to get some of a kickback for health insurance from the Tour. But they need to have their own insurance.
Thanks Jared Iāll check it out. Love the piece and the information makes me chuckle to myself amount of sheer dollars that are thrown around as I take a Substack break from my middle income job.
Hi Jared. Are the deferred compensation funds placed into a Rabbi Trust or similar non-qualified entity? If so, those still remain assets of the PGA Tour until payout and would be subject to their creditors should something happen to the PGA Tour financially. That adds another element to the stress over the PGA/PIF deal and speculation with respect to the financial ramifications.
Hey Jeff - the PGA Tour holds those assets on its balance sheet. If you take a look at their Form 990 under the assets in the balance sheet you will see 'Investments - publicly traded securities'. Around 80% of that number is believed to be player retirement accounts.
Every sport now days has huge compensation plans but it does seem like the Tours retirement fund for their players is a very nice plan. I would be interested to compare the PGA tour to other major sports entities like the MLB and NFL. There are more players who would technically be on the top stage of their sports like the 150 guys are for the PGA so Iām not sure how the comparison would work but it does sound interesting.
Also besides getting injury deferment time to recover from injuries do PGA players have the option of Tour supplied health insurance or do they have to select a private insurer?
Thanks Austin - I wrote a piece a few months ago detailing the PGA Tour Retirement - it goes into some of what you are asking.
As far as health insurance - I am not aware of how that setup works. I know more about the caddie setup than player. Caddies to get some of a kickback for health insurance from the Tour. But they need to have their own insurance.
Thanks Jared Iāll check it out. Love the piece and the information makes me chuckle to myself amount of sheer dollars that are thrown around as I take a Substack break from my middle income job.
Hi Jared. Are the deferred compensation funds placed into a Rabbi Trust or similar non-qualified entity? If so, those still remain assets of the PGA Tour until payout and would be subject to their creditors should something happen to the PGA Tour financially. That adds another element to the stress over the PGA/PIF deal and speculation with respect to the financial ramifications.
Hey Jeff - the PGA Tour holds those assets on its balance sheet. If you take a look at their Form 990 under the assets in the balance sheet you will see 'Investments - publicly traded securities'. Around 80% of that number is believed to be player retirement accounts.