PGA Tour still tax-exempt, with an assist from Nicklaus

PGA Tour still tax-exempt, with an assist from Nicklaus

KAPALUA, Hawaii (AP) – On the day PGA Tour Commissioner Jay Monahan introduced greater than $180 million given to charities final yr, he shared how the tour turned to Jack Nicklaus to assist defend golf’s mannequin for elevating cash.

The tax-exempt standing of the PGA Tour and different sports activities leagues was in jeopardy late final yr below the Tax Cuts and Jobs Act. A part of the Senate model of the invoice included a subsection referred to as, “Repeal of Tax-Exempt Standing for Skilled Sports activities Leagues.”

That is when Monahan determined to name Nicklaus at his workplace, however he dialed his cell phone.

“He whispers, ‘Hey?'” Monahan mentioned Sunday on the Sentry Event of Champions. “I mentioned, ‘I would like your assist.’ I walked him by the entire situation. I mentioned, ‘I would like you to make some cellphone calls and write some letters. We have to go full bore on this factor.'”

Nicklaus whispered as a result of he was in a subject in upstate New York. He advised the commissioner he’d get began when he bought again to Florida.

Monahan mentioned Nicklaus wrote letters and referred to as senators. In the meantime, Davis Love III went as much as Washington per week after having hip surgical procedure and helped prepare for conferences with members of the Senate Finance Committee.

Golf Digest reported in December that PGA of America chief govt Pete Bevacqua mentioned he contacted his political contacts. In the end, the availability was not within the closing model of the Senate invoice.

“It is fairly superb that Jack Nicklaus and Davis Love III had been reaching out to their congressmen and ladies,” Monahan mentioned.

If the availability had remained within the invoice, it may have required the PGA Tour to alter its construction in a approach that would cut back tax incentives to draw company assist that makes charitable giving doable. All internet proceeds from PGA Tour occasions go to native charities, and company assist helps pay payments from prize cash to operational prices.

Monahan mentioned the $180 million that PGA Tour occasions generated final yr broke final yr’s report by about $14 million. That features donations from tournaments on all six of its excursions – PGA, Champions, Net.com, Canada, Latin America and China.

PGA Tour occasions have raised $2.65 billion relationship to a $10,000 donation from the Palm Seaside Invitational in 1938.

“It is a massive a part of who we’re,” Monahan mentioned. “We wish to assume we do it higher than anybody else. It is our scorecard, if you’ll.”

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