The PGA Championship is one of the most prestigious events in golf, and the payout for winners is nothing to scoff at. So just how much do the champions take home? The answer may surprise you.
In 2021, the total purse for the PGA Championship was $11 million. The winner, Phil Mickelson, took home $1.98 million of that. This is a significant increase from the $1.98 million that previous champion Collin Morikawa earned in 2020.
But the payout for the winner isn’t the only way that golfers can earn money at the event. Second place in 2021 went to Louis Oosthuizen, who took home $1.19 million. Third place, held by Brooks Koepka and Padraig Harrington, earned $667,000 each. In fact, even players who didn’t make the cut can still earn money, as they receive a smaller share of the purse.
So whether you’re lucky enough to clinch first place or just make it to the tournament, the PGA Championship can be a lucrative event for golfers.
Understanding the PGA Championship Payout Distribution
With the PGA Championship being one of the four major golf tournaments, the payout for the winners is undoubtedly significant. In fact, the total purse for the 2021 PGA Championship was a whopping $12 million. The winner of the tournament took home $2.16 million, while the runner-up received $1.3 million. The third, fourth, and fifth finishers received $830,466, $587,240, and $489,057, respectively.
But how exactly is the payout distribution determined? The PGA Championship payout is based on the number of players who make the cut, which is typically the top 70 players plus ties. The players who make the cut are then awarded a portion of the overall purse, with the winner taking the largest share.
For example, out of the $12 million purse for the 2021 tournament, the winner received 18% of the total prize money, while the runner-up received 10.83%. The percentage of the purse decreases until it reaches 0.02% for the players who made the cut but finished outside of the top 70.
It’s important to note that the PGA Championship payout distribution has not always been this transparent. In 2016, the PGA of America, which runs the tournament, announced that they would be implementing a new system to make the payout structure more clear and equitable. The move was seen as a way to keep up with the other major tournaments, such as the Masters and the US Open, which had already implemented similar changes.
Under the new payout system, the percentage of the purse awarded to the winner of the PGA Championship was increased from 10% to 18%. This means that the winner takes home a larger share of the overall purse, incentivizing players to perform at their best throughout the tournament.
So if you’re a golf fan wondering how much your favorite player stands to win at the PGA Championship, the answer largely depends on their final standing in the tournament. With the new and improved payout structure in place, players have even more reason to give it their all on the greens and aim for that top spot.
Top Prizes for PGA Championship Winners throughout the Years
Winning a major PGA Championship is a lifetime achievement for any golfer, earning them pride, respect, and a huge financial reward. Over the years, the prize money that the PGA Championship winners have received has significantly increased.
In 1916, the first-ever PGA Championship was played in New York, and the winner, Jim Barnes, took home a prize of $500. In 1937, Denny Shute was awarded a prize of $2,000, which was a record amount at the time. But, things changed in 1958 when Dow Finsterwald took home a prize of $10,000 for his win.
The prize money continued to increase throughout the years. In 1980, Jack Nicklaus earned a prize of $60,000 for winning the PGA Championship. The prize money escalated in 2000 when Tiger Woods won his first PGA Championship, earning a record $1,000,000. Ten years later, Martin Kaymer took home a prize of $1,350,000 for his victory at Whistling Straits, which was the largest prize money ever awarded in the history of the PGA Championship.
The prize money for the PGA Championship varies every year depending on the amount of revenue generated by the tournament. However, the PGA of America announced in 2019 that the prize money for the tournament had increased to $11,000,000 from $10,500,000, indicating the highest prize money for any golf major event.
Let’s take a look at some of the recent winners of the PGA Championship and the prize money they’ve received:
2021
In 2021, the winner of the PGA Championship was Phil Mickelson, who won the tournament for the second time, becoming the oldest player to win a major championship at the age of 50. Mickelson took home a prize of $2,160,000 for his remarkable achievement.
2020
The 2020 PGA Championship was held in San Francisco, where Collin Morikawa won his first major PGA Championship. Morikawa took home a prize of $1,980,000 for winning the tournament.
2019
In 2019, the PGA Championship was held in New York, where Brooks Koepka became the first golfer to win the tournament two years in a row since Tiger Woods. Koepka took home a prize of $1,980,000 for his win in 2019.
Winning the PGA Championship is not only prestigious but also is financially rewarding. The top prizes for PGA Championship winners have increased significantly in recent years, and the winner of the 2021 tournament, Phil Mickelson, took home an astounding $2,160,000 for his victory.
How the PGA Championship Payout Compares to Other Golf Majors
Golf is one of the most prestigious sports in the world, and winning one of the golf majors is a dream for any golfer. With fame and glory come also the prize money, and the PGA Championship offers significant payouts to the winners. However, how does the PGA Championship payout compare to the other golf majors?
The Masters Payout
The Masters Tournament is the first golf major of the year, and it is held annually at Augusta National Golf Club in Augusta, Georgia. The prize money for The Masters is amongst the highest in golf, with the champion taking home around $2.07 million, although the exact amount can vary depending on the year. The total purse for The Masters is over $11 million, which is comparable to the PGA Championship payout. However, the payout structure is different, with more significant amounts given to the top finishers.
US Open Payout
The US Open is a golf major that takes place in the US and is the second of the four majors. The payout for the winner is around $2.2 million, which is more than that of The Masters and the PGA Championship. The total purse for the US Open is over $12 million, which is also higher than the other two majors mentioned. However, like The Masters, the payout structure is different, with more significant amounts given to the top finishers.
The Open Championship Payout
The Open Championship, also known as the British Open, is the oldest of the four majors and is held in the UK. The payout for the winner is around $2.07 million, which is similar to that of The Masters, although the total purse is slightly lower. However, as with the other majors, the payout structure is different, with more significant amounts given to the top finishers.
Overall, the PGA Championship payout is comparable to the other majors, with a total purse of around $11 million, and the winner taking home around $1.98 million. While the payouts may differ slightly between the four majors, the prestige and honor that come with winning one of these tournaments far outweighs the monetary reward.
The Impact of Sponsorship and Endorsements on PGA Championship Winnings
The PGA Championship is one of the biggest events in golf, and with a total purse of $11 million, the payouts to the winners can be quite substantial. However, many golfers also rely on sponsorships and endorsements to supplement their income and increase their overall earnings. In this article, we’ll take a closer look at the impact of these outside factors on PGA Championship winnings.
1. Understanding PGA Championship Payouts
Before we dive into the impact of sponsorships and endorsements, it’s important to understand how PGA Championship payouts are structured. This year, the winner of the tournament will take home a whopping $1.98 million, while the runner-up will receive $1.188 million. The third-place finisher will get $748,000, and the fourth-place finisher will take home $528,000. The payouts continue to decrease from there, all the way down to the 70th-place finisher, who will receive $19,500.
2. How Sponsorships Can Boost Earnings
For many professional golfers, their earnings from tournaments are just a portion of their overall income. Sponsorships from companies like Nike, Titleist, and Rolex can add to their earnings significantly. These sponsorships can come in many forms, from wearing a company’s logo on a golfer’s hat or shirt to signing on as a brand ambassador for a certain product. These deals can pay anywhere from a few thousand dollars to over a million, depending on the golfer’s level of fame and success.
3. The Impact of Endorsements on Earnings
In addition to sponsorships, endorsements from companies outside of the golf industry can also add to a golfer’s earnings. These deals can include anything from signing on as a spokesperson for a car company to becoming the face of a luxury watch brand. Like sponsorships, these deals can pay anywhere from a few thousand dollars to several million. For golfers who have achieved a high level of fame and success, the earning potential from endorsements can be massive.
4. The Top Earning Golfers in 2021
So, who are the top earning golfers in 2021, and how much of their income comes from sponsorships and endorsements? According to Forbes, the highest-earning golfer of the year so far is Phil Mickelson, who has earned a total of $50.8 million. While the majority of his earnings come from tournament winnings, he has also made a significant amount from endorsement deals with companies like Callaway, KPMG, and Workday.
The second-highest-earning golfer is Tiger Woods, who has earned a total of $42.3 million so far this year. Like Mickelson, Woods has made a significant amount from endorsement deals, including partnerships with Nike, Rolex, and Bridgestone.
Other top-earning golfers with notable endorsement deals include Rory McIlroy (with deals with Nike, Omega, and TaylorMade), Justin Thomas (with deals with Titleist and FootJoy), and Jordan Spieth (with deals with Under Armour, AT&T, and Coca-Cola).
Conclusion
While the payouts for the PGA Championship can be quite substantial, many professional golfers also rely on sponsorships and endorsements to boost their earnings. These deals can add significant amounts to a golfer’s income, and for those who have achieved a high level of success and fame, the earning potential can be massive. As the sport of golf continues to grow in popularity around the world, it’s likely that we’ll see even more lucrative sponsorship and endorsement deals in the future.
Exploring the Tax Implications of PGA Championship Prize Money
The PGA Championship is one of the biggest and most prestigious golf tournaments in the world, attracting the very best golfers from around the globe. With millions of dollars in prize money up for grabs, it’s no surprise that winning the PGA Championship is a life changing event. However, what many people don’t realize is that there are significant tax implications to winning the tournament. In this article, we will take a closer look at the tax implications of PGA Championship prize money.
What is the Total Payout for the PGA Championship?
The total purse for the PGA Championship in 2021 was $12 million, with the winner receiving a payout of $2.16 million. This makes the PGA Championship one of the most lucrative events in professional golf, second only to the Masters in terms of total purse. In addition to the winner’s payout, there are also significant payouts for the runners-up, with second place receiving $1.296 million and third place receiving $865,000.
How Much Will the Winner Actually Take Home?
While the winner of the PGA Championship will take home a sizable payout of $2.16 million, they will not actually receive the full amount. This is because the Internal Revenue Service (IRS) requires that all prize money won by non-US citizens be subject to a 30% withholding tax. This means that a non-US citizen who wins $2.16 million in prize money will only receive $1.5 million after taxes. US citizens are also subject to income tax on their prize money, although they can offset this against expenses incurred in connection with their participation in the tournament.
What are the Tax Implications for US Citizens?
US citizens who win prize money at the PGA Championship are subject to both federal and state income taxes. The federal tax rate on prize winnings for US citizens is 24%, meaning that a US citizen who wins $2.16 million in prize money would owe $518,400 in federal income tax. In addition to federal taxes, the winner may also be subject to state income taxes, depending on the state they reside in.
What Happens to the Prize Money for Runners-Up?
The runners-up in the PGA Championship also receive significant payouts, with second place receiving $1.296 million and third place receiving $865,000. However, these amounts are also subject to tax. The 30% withholding tax applies to non-US citizens, while US citizens are subject to both federal and state income taxes. This means that the prize money received by the runners-up will be significantly lower than the advertised amounts.
Conclusion
Winning the PGA Championship is an incredible achievement, but it also comes with significant tax implications. The winner of the tournament will be subject to a 30% withholding tax if they are a non-US citizen. US citizens will also be subject to federal and state income taxes on their prize money. The prize money received by the runners-up is also subject to tax. It’s important for players to be aware of these tax implications and to plan accordingly, in order to avoid any surprises when tax season rolls around.
