The November 2020 strategic alliance between the PGA Tour and DP World Tour is no secret. The American Tour acquired a 15% stake in European Tour Productions (ETP), but things didn’t end there. A couple of years later, the partnership expanded into a 13-year joint venture running until 2035, which would see the PGA Tour’s stake rise to 40%.
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And between 2023 and 2025, the PGA Tour paid roughly £100 million through the Annual Investment Payment (AIP). This helped the DP World Tour boost its prize money while the PGA Tour received equity in ETP. According to Money in Sport, the European Tour has already received approximately £132 million in cash in total, which includes more than the AIP alone, with another £96 million forecast between 2026 and 2030.
That could take total payments to around £228 million. Meanwhile, the European Tour’s turnover fell 2.5% in 2025, and it made an operating loss of roughly £64.5 million (about $85 million) before the AIP is counted. The AIP runs until 2027. That drop is worse than it sounds, since Ryder Cup years usually deliver stronger results.
The AIP has no cap, and 2025 showed what that means. The PGA Tour handed the European Tour £58.8 million in cash, which covered about 91% of that operating loss. So the PGA Tour is footing most of the Tour’s losses, and prize money is only part of the story.
Meanwhile, PGA European Tour Group Chairman Eric Nicoli included a report in the 2025 European Tour financial statements, noting that the Tour’s sponsorship agreements with DP World and Rolex have been renewed. However, he does not clarify whether the renewed terms are financially more favorable for the Tour.
“Flagship commercial deals included DP World extending its Title Partnership of the DP World Tour until 2035 (the largest in the Tour’s history), and Rolex signing a long-term extension to remain Official Timekeeper and Title Partner of the Rolex Series. These deals, plus a further six top-tier Official Marketing Partners coming on board, give us long-term stability.”
He also commented on the strategic alliance with the PGA Tour:
“The commitment in the 2023 – 2035 Strategic Alliance with the PGA TOUR for a record and escalating prize fund on the DP World Tour (supported by the AIP) currently runs until the end of 2027. Subsequent to the balance sheet date, the Group has continued to engage in constructive discussions with PGAT regarding a further evolution of the Strategic Alliance.
“As at the date of approval, these discussions remain ongoing and non-binding, and no agreements have been executed.”
Moreover, Money in Sport notes that the PGA Tour strengthened the alliance largely to counter LIV Golf when it was in full swing. But LIV has since filed for bankruptcy and is only planning a restart in 2027, so that threat has largely faded. The PGA Tour could now push back on the AIP, which is due to end in 2027, given how much is going into DP World Tour prize money.
That move makes even more sense, considering the PGA Tour will launch its two-tier model in 2028, featuring the Championship and Challenger series. What’s more, there are no details available regarding PGA Tour players’ equity incentives, so it remains unclear whether AIP payments affect the incentive targets. But if they do, that would be another reason for the PGA Tour to change its AIP payments to the DP World Tour.
DP World Tour players may take an even more direct hit. The top ten players on the European Tour currently receive PGA Tour cards, but the PGA Tour has not confirmed how many cards will be available from 2028, and reports suggest the number could be reduced. If that happens, the upside is that the DP World Tour could keep more of its top players, instead of handing them over to the PGA Tour each year.
Still, this doesn’t mean the PGA Tour will pull all the funding from the DP World Tour in 2028, as the Saudi PIF did with LIV Golf. That’s because such a drastic move would damage the PGA Tour’s own investment in ETP, where it is set to reach a 40% stake. In any case, only time will tell whether this happens.