Why is the PGA Tour docking Rory McIlroy $3 million and what is PIP?

A four-time major champion, McIlroy is perhaps one of golf’s recognizable faces, which is precisely why his absence in South Carolina is notable and that’s been made even more so now that he’s been sanctioned for his choice not to attend.

Rory McIlroy’s docked pay the result of PIP

If you didn’t know, all players on the PGA Tour are allowed one opt-out, meaning when Rory McIlroy chose to miss this year’s RBC Heritage tournament, he would have done so having already used his when he didn’t attend the Sentry Tournament of Champions. With that, reports then confirmed on Wednesday that McIlroy would miss out on a portion of his Player Impact Program (PIP) payout which comes to approximately $3 million.

You may recall that just last year, McIlroy and Tiger Woods spearheaded a group of players who pressed for structural changes on the PGA Tour schedule. Included among the proposed changes were things such as a request for more elite events - many now carrying a $20 million purse - which was in direct response to the threat posed by LIV Golf. In principle, what the group wanted to see was a scenario where the best players were playing in the biggest tournaments with more frequency. To be clear, when the idea was announced late last year, it was closely tied to PIP. The thinking was to enable a bonus pool - it was $100 million in 2022 - which in turn would reward players based on a number of factors, some of which went beyond performance. To that end, Woods himself finished in the top spot and was paid $15 million, while McIlroy himself finished second and got $12 million. Once again, for the purpose of clarity, it should be understood that the Tour presented payment stipulations which hinged on participation in all designated events, with the allowance of one absence in order to receive the full bonus.

How does PIP work in action?

According to reports, players were paid 75% of the aforementioned bonus in January. The rest will be allocated upon the successful completion of the criteria outlined when the year ends. Aside from the above-mentioned mandatory participation in all but one tournament, it’s understood that there are also requirements relating to tour related functions such as clinics, meet and greets and receptions. It’s worth noting that PGA commissioner, Jay Mohanan, had previously stated that there would be discretion utilized with regards to how bonus money would be paid out and moreover that injury and personal matters would be considered in the event that a player could not participate.

How is PIP being changed?

As we understand it, next season will see the PIP pool reduced to $50 million and more importantly it will no longer be tied to the designated events. What this means is that it will now consist of just eight events excluding the majors, as well as the Players and three FedEx Cup playoff events. If you’re wondering, this year’s designated events are the Sentry Tournament of Champions, WM Phoenix Open, the Genesis Invitational, the Arnold Palmer Invitational, the WGC-Match Play, the RBC Heritage, the Wells Fargo Championship, the Memorial Tournament and the Travelers Championship.