Exactly - that is why the PGA tour taking any stance that puts them on the high road is comedy. LIV is blood money, but the PGA Tour is not Joan of Arc.
Also Ryder Cup participants will be paid eventually.
As you all know, the PGA tour has all of a sudden come up with another $54 mil; it seems that Phil has at least a minor victory here in that his stated goal (not that I think that was his entire, or even main, reason) was to change the PGA tour. Where did this 54 mil come from and why didn't the PGA Tour access it before?
The PGA Tour has announced increased purses at the biggest events and an enhanced fall series for the game's best.
www.golfchannel.com
I agree that the PGA Tour is far from the heroic defender here as I have stated here a few times -- and I will call them out again later in another post - but let's focus on Phil first.
This is not a Phil victory, nor a vindication that he is right on this point. He is not and it is very simple to explain where the money is coming from and why it is coming in now. But then again people have believed anything this phony has said for years.
Phil claims the PGA a has bunch of extra money. And they do - for a reason! They are a member owned business that draws in hundreds of millions of revenue each year and have millions of expenses, long term obligations and investments planned. Do you think members want to write a check to the PGA to fund them if they lose money or run out of cash? Or send them a check if they want to invest into their digital platform for example? The plan is not to break even in terms of cash or get that close to it. Members approve these reserves for a reason - and its because they have common sense and don't have the same "Financial Wizardry" of Phil Mickelson.
Do you think member partners approve reserves with no logic? You don't think the PGA is going to set aside a large number of reserves for a number of reasons, such as:
- Litigation
- Unexpected Losses of Revenue
- Pensions
- Future Capital Investments including Digital
- Strategic Initiatives / Competitive Reasons
Now that LIV is here, the PGA tour is able to raise the purses for two reasons:
1) Corporate Sponsors and TV Partners who are heavily invested in the tour as it stands are making further investments to protect the investments they already have. Fairly common strategy when fighting competion.
2) Taking money out of their reserves for strategic and competitive reasons to fight LIV.
One of the exact reasons you keep reserves - to be able to access money when you feel most threatened. Phil the "Financial Wizard" will believe they were just hiding a bunch of money, and should have just spent all the money in the past, leaving the organization even more exposed today. Stunning that he is not PGA Tour Commissioner -- better yet he should be a CFO of a Fortune 500 company with his financial wizardry.
