The PGA Tour pension plan has long been regarded as one of the most generous in all of sports, but what does that actually mean? Part of the answer is tucked into a 2025 annual report the Tour provided its membership and which GOLF.com reviewed.
The report details the financial status of the Tour’s core businesses in 2024, and includes a bit of chest-beating along the way. Among the points the Tour likes to highlight is the money it defers to its members’ retirement accounts. While golf fans may marvel at the ever-growing purses the players compete for every week, the Tour also has contributed $47 million to the accounts of deserving players in each of the last four years. Similar to a 401(k) account, that’s money that sits until players can draw upon it after their core playing years are over, most often around age 50.
But whereas your employer is likely matching a percentage (4% to 6%, perhaps) of your salary, the Tour rewards its players in multiple ways: firstly, for finishing in solid position of the season-long FedEx Cup standings, and, secondly, for cuts made by any member who has played a minimum of 15 events that season.
In August 2024, when Scottie Scheffler earned $25 million for winning the FedEx Cup, $1 million of those earnings were deferred to his retirement account, just as a portion of the year-end bonuses were deferred for all 30 players who advanced to the Tour Championship. Any players who didn’t advance — but still finished in the top 150 of the FedEx Cup — also earned a piece of the deferred pie. But that’s only half the Tour retirement story.
The Tour also contributes a certain amount — around $5,000 in 2024 — for every cut made by eligible players. For those players’ first 15 made cuts in a season, they received one “point” ($5,000) of Tour contribution. For all made cuts after the first 15, they received two points ($10,000). Play a bunch of events and make a bunch of cuts and you won’t be returning to the normal workforce when your playing career is over.
Surprisingly, the leader in the Cuts Plan clubhouse was not Scheffler and his perfect record of 19 cuts made in 19 starts. Rather, it was Mark Hubbard, who made 26 cuts in 30 starts in 2024, earning 37 “contribution” points, which amounted to $187,881 to his retirement account. Make 20 cuts a season for a bunch of seasons and the money piles up quickly.
How quickly? As of year-end 2024, 372 players had retirement balances north of $1 million. Of that group, 179 had amassed balances of $3 million or more — and this is all in addition to on-course and endorsement earnings. Remember, this is all according to accounting performed at year-end 2024. Rest assured, the players’ nest eggs have only increased since then.
3 things I’m thinking:
1. Patrick Reed is set. The (other) man who left LIV Golf this year played so well during a three-week spurt in the Middle East that he has all the Race to Dubai points (on the DP World Tour) he’ll need to requalify for PGA Tour membership. With less than two months to the Masters, I bet we don’t see Reed play much at all on the DPWT. For one, he doesn’t have to. For another, Texas is a long way from Europe.
2. LIV should be thrilled. This time a year ago, LIV Golf wasn’t anywhere near attaining World Ranking points. Now they’re getting some — albeit just for the top 10 players in each event — but that actually nets out to a good boost for LIV’s highest finishers. Scottie Scheffler earned 15 points finishing one shot out of a playoff in Scottsdale while Jon Rahm earned 13 points finishing one shot out of a LIV playoff in Riyadh.
3. Gotterup’s Gang. Much was made of how last week’s PGA Tour winner prevailed while missing the wedding of one of his college golf buddies. Well, I just so happened to be there in Gotterup’s place, at the Panagos wedding in Winter Park, Fla., where the conversation all weekend long revolved around the PGA Tour leaderboard. The only thing that could have made the weekend any better? It happened when Gotterup hooped a birdie putt in the playoff for the win. Call it his wedding gift.
