With the arrival of LIV Golf and the PGA Tour’s need to have to react to the riches currently being provided by its new Saudi Arabia-backed rival, increased scrutiny of the U.S.-centered circuit’s finances has logically adopted. Following all, Commissioner Jay Monahan now has acknowledged that the PGA Tour could not prevail towards LIV if the levels of competition for gamers merely came down to pounds.
Continue to, some shut items of assessment are much more regime than other individuals, and so there are reviews these kinds of as the just one printed by the Wall Street Journal on Wednesday that almost certainly will make the tour’s management queasy.
The Journal documented in depth Monahan’s use of a tour-owned personal jet for each small business and own journey, as very well as citing the commissioner’s 2020 compensation of $14.2 million. The story noted Dustin Johnson was the only participant to eclipse that complete since he received that season’s FedEx Cup title. (The precise yearly shell out, the tour informed the Journal, for Monahan was $8.3 million, with the relaxation of revenue currently being lengthy-phrase incentive spend and future retirement advantages accrued.) In regard to the aircraft, the Journal described that the PGA Tour owned a firm named Tour Air Inc., and began leasing a jet in 2011. It then bought the Citation X plane last year, in accordance to Federal Aviation Administration (FAA) data.
In the Journal’s exploration, it identified additional than two dozen flights in 2022 to airports that were being in close proximity to tour activities on the dates they were staying played. For the Masters, as an case in point, the aircraft flew 4 instances involving the tour’s headquarters in Ponte Vedra Seashore, Fla., and Augusta, Ga.
The Journal cited different other excursions taken, some particular (to Colorado and Massachusetts) and some mixing small business and particular flights. Among the the most notably attention-grabbing flights was one particular Monahan took this earlier June to Turks and Caicos for the marriage of then tour player Brooks Koepka. Not extensive right after, Koepka defected to the LIV Golf tour following at first stating he would not do so.
Responding to thoughts about Monahan’s use of the plane for individual reasons, the PGA Tour advised the Journal that Monahan is required by its Coverage Board, which consists of gamers, to use the corporate plane for all company and personal air journey because it supplies the “necessary degree of efficiency, privacy and security.”
The Journal also claimed that the PGA Tour, as a non-earnings, chose in 2020 to depth its investing on its tax return in a fashion that 1 non-financial gain tax law firm identified as into issue. The Journal documented that narrative descriptions of the gains received by selected PGA Tour officials, like the flights, are not readily available in the tour’s tax filings, as essential for non-earnings organizations. The most a short while ago obtainable submitting from 2020 for the PGA Tour says that, in “limited instances,” top rated executives “may make use of charter or 1st-class journey for business” outings, citing protection, privacy or effectiveness factors.
The submitting does not specify that the “charter” flights could be on the plane it owns.
“Given that the firm mandates the use of chartered jets for individual journey, the disclosure on the 990 [tax filing] is at finest misleading and at worst deliberately inaccurate,” Elizabeth Kingsley, a Washington lawyer who advises nonprofit companies, told the Journal.
In a reaction to a request from Golfing Digest on Wednesday for comment on the WSJ report, the PGA Tour issued this statement: “The PGA Tour Plan Board maintains near oversight of the utilization of the company aircraft, and all use is fully accredited and proper. The tour’s Form 990 is routinely reviewed by our outside the house 501c6 organization experts, and we are compliant with all disclosure needs.”
The thoughts the tour faces about the way it spends funds occur at a time when the pot of income built out there to players is much larger than it’s ever been. The tour provided a financial document to the Journal that projected it would use $32 million from its reserves in 2022 to fund player earnings, and it mentioned that 55 percent of its $1.52 projected revenue would go to the gamers.
