While in class Monday, I read a newspaper article in the Wall Street Journal about pro golfers. It was titled, “When Millionaires Moan: The new PGA playoffs are turning a genteel sport a little warlike,” by John Paul Newport.
After reading it I had to express my thoughts on this article. John Paul Newport touched on the three problems that the major golf stars such as Phil Mickelson, Tiger Woods and Ernie Els, have with the FedEx Cup and PGA Tour commissioner Tim Finchem.
The first problem was that the money wasn’t being paid out like the tour players wanted it. The second problem was the seeding, it’s not bracket form like football but instead based on previous performances. The third complaint was the biggest problem of all — too many golf tournaments in too short of a time period.
Tiger Woods, among other players, does not agree with the current system of how money is paid out. Right now there is a pool of $35 million, 10 of which goes to the winner, not in cash but instead in a 401k account. This retirement account cannot be accessed by the winner until age 45. This account is compounded and grows until maturity. Did I mention this account is tax deferred? However, Phil and Tiger would rather have the $10 million right away, although after taxes it would only be equivalent to six million dollars.
If they kept with the current system, and say they would be making six percent interest for 15 years on the account, they would walk away with $23,965,581.93 in untaxed dollars in their pocket. Not a bad deal at all, eh? Maybe Tiger and Phil should discover the wonderful phenomenon of compounding interest that doubles their money.
The biggest problem of all is too many golf tournaments in too little time. The PGA playoffs, and other very important tournaments start in early August and goes until late September. Apparently that is too much for pro golfers. Newport writes “the top players are expected to compete in seven important tournaments in nine weeks. Fans can joke that they’d like to have such problems, but playing at peak intensity for that many weeks is genuinely fatiguing.”
I’m not even sure how to respond that, other than what a joke. First off, playing seven tournaments in nine weeks isn’t that much golf, let alone too much golf at all. Most professional athletes while in season are playing almost every day, and when they are not playing they are traveling across the country. They are exerting just as much effort as golfers are. Golfers might even have more of a break than other athletes.
College golfers have just as demanding a schedule as the pros. The tour schedule could be a lot more demanding. If the players believe it’s too much, they can just opt not to play in some of the events.
After much thought, I have come up with a few solutions to these problems. First, the pros who are complaining should take some basic business classes to learn about compounding interest and our progressive tax system.
Next they should go back to college and play college golf. They will play more than seven tournaments in nine weeks, and carry their own bags, rather than their caddies do it for them. And after all that, if they still want to complain, I know some guys who would love to play their schedule and would accept just $100,000 dollars in a 401K account. Actually, they might even play on the tour for free.
I’m not saying playing on the PGA Tour is easy, but it’s their job, and their job is one of the best ones that has ever existed. These pros have it made, and I’m pretty sure Tim Finchem should institute a rule saying there should be no whining on the course.
Oh wait, that would give the tour players more to complain about.