PGA Tour commissioner Jay Monahan increased his overall compensation to $18,600,000 from $13,900,000 last year - Reports
Jay Monahan had a tough year in 2022. The controversy with the then-nascent LIV Golf was certainly taxing on the 53-year-old. But all in all, it wasn't a bad year for Monahan, as reports indicate that his compensation as PGA Tour Commissioner rose from $13,900,000 in 2021 to $18,600,000 in 2022.
The $4.9 million jump in Jay Monahan's income was part of the PGA Tour's increased revenue in fiscal year 2022, as shown by tax reports, accessed by Sportico. The media outlet explained Jay Monahan's compensation for his services as PGA Tour Commissioner as follows:
"The commissioner’s 2022 haul includes a $1.8 million base salary, $9.2 million in bonus and incentive compensation, and an actuarial estimate of $7.4 million for non-cash benefits that he will receive after he retires."
Sportico also highlighted that the PGA Tour reported earnings of $1.9 billion for 2022, a substantial increase from $1.55 billion in 2021.
Even more interesting is that, according to data published by Sportico, the PGA Tour's legal fees increased 10-fold from one year to the next (from $2 million in 2021 to $20.7 million in 2022). One more of the effects of the emergence of LIV Golf.
After the inception of LIV Golf, the PGA Tour faced lawsuits from several players challenging suspensions they received for moving from one circuit to another. The lawsuits were eventually dismissed, but tax reports revealed the financial cost of this legal battle to the PGA Tour.
Jay Monahan's PGA Tour 2022 tax reports: Other details
PGA Tour tax reports accessed by Sportico reveal that the circuit's revenues during 2022 came from several items, namely:
- Media Rights: $763 million
- Tournaments Managed: $229 million
- Tournaments Co-Sponsored: $196 million
- Program Sponsorship: $201 million
- Other: $38 million
The Jay Monahan-led circuit also had significant expenses during 2022. Data disclosed by Sportico reflects that costs were $1.87 billion, $32 million more than the previous year.
The PGA Tour's battle against LIV Golf has strained its financial resources, not just because of legal fees. LIV Golf is backed by Saudi Arabia's Public Investment Fund (PIF), with a reported capital of over $600 billion.
The PIF's investment in LIV Golf exceeds $2 billion, Golf.com reported in May 2023, citing the league's CEO, Greg Norman. This figure has been reversed in player signings and prize money for each tournament, with LIV Golf managing to substantially differentiate itself from the PGA Tour on the financial side.
The most recent example is the signing of Jon Rahm, whose signing fee reportedly exceeds $300 million. In addition, Rahm's contract includes other aspects that have not been disclosed but which, undoubtedly, make the deal more expensive for the circuit.