PGATour Professionals' Actual Earnings Unveiled by Insider Tour Player
Michael Kim, a prominent golfer on social media, has been shedding light on the behind-the-scenes expenses that PGA Tour professionals face. With his enlightening posts, Kim offers a unique perspective on the financial aspects of life on the PGA Tour.
One of the most significant expenses for top players is their caddies, who typically earn around 8% of their golfer's prize money, in addition to a base salary. For top-ranking players, this can amount to approximately $450,000 per year.
Travel and accommodation costs are another substantial expense. Players often spend around $5,000 per week, which, over a 25-tournament season, can add up to approximately $125,000. However, this figure can increase significantly if players opt for private jets.
Food is another area where expenses can pile up. While some food is covered by player dining at events, additional groceries and dining out can add to expenses. For instance, one pro spent about $315 on groceries for a week.
Taxes are a significant expense, with high earners facing tax rates of 30% to 40% or more. The exact amount varies widely depending on the player's income level and tax jurisdiction.
Other expenses include equipment, training, and miscellaneous tournament fees, which can vary widely based on individual needs and choices.
All these expenses can eat away large portions of a PGA Tour pro's prize money. According to Kim, his own expenses are around $400,000. This means that even an average yearly earnings of $5 million, before taxes, could leave a top PGA Tour pro with significantly less than initially perceived.
The difference in taxes between tournaments in different states can also have a substantial impact on a player's earnings. For example, winning the ATT Pebble Beach tournament yields a pay cheque that is $478,000 less than the Arnold Palmer Bay Hill tournament, without deductions, due to different state taxes.
Endorsement deals can increase a player's average earnings, but it is important to note that players do not pocket all the prize money we see regularly. The average top 50 PGA Tour pro, after taxes and expenses, takes home significantly less than the initial $5 million of winnings, suggesting that the perception of mega earnings among casual golfers may be misleading.
For those interested in staying updated on tour news, equipment news, reviews, head-to-heads, and buyer's guides, the Golf Monthly Newsletter is available for subscribers. Kim's posts provide a detailed look at the long list of expenses tour pros have to cover to compete on the PGA Tour, offering a fresh and informative perspective on the world of professional golf.
Personal-finance management is crucial for PGA Tour professionals like Michael Kim, as expenses such as caddies' earnings (around $450,000 annually for top-ranking players), travel and accommodation costs ($125,000 for a 25-tournament season), food ($315 per week for groceries alone), taxes (ranging from 30% to 40% or more), equipment, training, and tournament fees, can significantly impact their earnings. Even with average yearly earnings of $5 million before taxes, a top PGA Tour pro might end up with significantly less due to these expenses. Kim's enlightening posts on social media provide a unique perspective on the financial aspects of life on the PGA Tour, offering insight into the world of professional golf.
