Professional Golf Must Address Their Independent Contractor Dilemma
- Villanova Sports Law Blog
- 22 hours ago
- 7 min read
Professional golf is at a crossroads, caught between its deep-rooted traditions and the data-centric, entertainment-driven demands of modern sports.[2] At the heart of this, Professional Golf Association (“PGA”) Tour players must balance growing their personal brand, while simultaneously fulfilling their professional duties.[3] Unlike Big Four athletes in football, baseball, hockey, and basketball, who are both individually contracted and presented by a Players Association union, professional golfers are legally classified as independent contractors.[4] Due to this distinction, they are not guaranteed salaries or benefits while on the PGA Tour.[5] Their earnings are entirely dependent on performance, sponsorship deals, and appearance fees, creating a unique yet often precarious and uncertain financial model.[6]
Recently, this structure has faced scrutiny, with high-profile players like Rory McIlroy suggesting “professional golfers may need to give up their status as independent contractors unless they want to go back to competing for prize funds from 10 years ago.”[7] McIlroy’s call for change has gained momentum amid the ongoing shake-up in professional golf fueled by the rivalry between the PGA Tour and LIV Golf.[8] Founded in 2021, LIV introduced an innovative, fast-paced approach to the sport, compelling the PGA Tour to rethink its long-standing, traditional model for the first time in its history.[9]
The Independent Contractor Model in Professional Golf
Unlike traditional employees, golfers do not receive salaries from an employer, such as the PGA Tour.[10] Instead, golfers on the PGA Tour are seen as independent contractors—self-employed individuals who have control over their work, but do not receive traditional employee benefits.[11] Traditional employees typically work for a single employer and are entitled to benefits such as wages, non-monetary benefits, and protections under labor laws.[12]
The Department of Labor’s Fair Labor Standards Act (“FLSA”) distinguishes these classifications based on three factors: control, taxation, and economic dependence.[13] The 2021 amendment emphasized two key factors: “the nature and degree of control over the work” and “the worker's opportunity for profit or loss.”[14] This legal distinction is fundamental in determining whether professional golfers should continue with the status quo or consider transitioning to a more protected role as employees under a structured contract.
At its core, the current independent contractor model allows professional golfers to enjoy significant freedoms, including control over their schedule, sponsorship deals, and career decisions.[15] Instead, they earn money based on their performance in tournaments. These payments can come in the form of prize winnings, appearance fees, and endorsement deals.[16] The lack of employer control enables athletes to carve out personal brands and maintain a high degree of autonomy.[17] However, this freedom also comes at a prominent cost.
The Push for Golfers to Be Employed by the PGA Tour
While being an independent contractor offers both freedom and flexibility, it also comes with significant challenges. For one, the lack of job security and a guaranteed income can be daunting.[18] On the surface, this statement may be countered by the fact that five of the top 50 highest paid athletes are golfers.[19] Nevertheless, this is not the case for those further down the Official World Golf Rankings.[20] For golfers who have recently joined the PGA Tour or those who struggle to find consistent success, competing professionally can mean going months without earning a net profit.[21] This creates an uneven playing field where financial stability relies solely on performance, rather than based on the contractual guarantees often found in other professional sports.[22]
The rising costs associated with being a professional golfer have coincided with this imbalance in earnings.[23] Travel expenses, caddie fees, and coaching costs can add up quickly, and golfers often must bear these expenses on their own.[24] Additionally, the PGA Tour organization takes a percentage of player’s earnings by facilitating events and providing prize pools.[25] Without a collective bargaining agreement to protect player’s labor rights, there is no mechanism in place to ensure guaranteed earnings or benefits for players.[26]
Interestingly enough, PGA Tour players previously attempted to form a “labor collective” in the late 1990s, aiming for greater autonomy over their schedule while reducing the discrepancy in revenue distribution to players. [27] Unfortunately, this attempt at unionization 25 years ago lost any momentum and failed due to lack of widespread player support.[28] Today, however, the division of league revenues to player earnings is staggering, reinvigorating the issue presented by players in the 1990s.[29] According to research by Richard Berthelsen, “NFL players get just under 49 percent [of league revenues]. NHL players receive 50 percent fully guaranteed. NBA players are at 51 percent.”[30] In a shocking comparison, he found that “[PGA Tour] players in 2018 received only 37.1 percent of revenues.”[31] Clearly, despite players being the crucial cog in the successful machine of pro golf, calls for more financial transparency and the possible need to alter the independent contractor status have only grown louder.
PGA Tour’s Independent Status in Question with LIV Golf Merger Looming
Rory McIlroy, the current #3 ranked professional golfer in the world, has been one of the sport's most outspoken figures on the issue of employee status.[32] In a recent interview, McIlroy called for professional golfers to consider moving away from the independent contractor status and instead sign employment contracts with the PGA Tour.[33] He emphasized that “players would have to be contracted and sign up to a certain number of events every year, allowing the sponsors and media partners to know that the guys they want to be there are going to be.” [34] Meanwhile, the PGA Tour golfers would be provided with guaranteed salaries and benefits similar to the system throughout other professional sports leagues.[35]
McIlroy’s call for change was prompted by the recently proposed merger between the PGA Tour and LIV Golf, who has proven to be the first true competitor for the PGA Tour.[36] LIV Golf introduced a model in which most players received lucrative contracts, marketing a major departure from the traditional structure of the PGA Tour.[37] After top stars like Dustin Johnson and Brooks Koepka left the PGA Tour to secure deals worth over $100 million, the PGA Tour could no longer ignore the outcry for change.[38]
As a possible merger between the two leagues looms, many players have expressed concerns about how their status and financial security could be affected.[39] Some believe that the merger could push the PGA Tour towards adopting contract-based player agreements, while others worry about increased control over their careers.[40] As a matter of fact, Golf Channel pundit Ryan Lavner recently reported on the reasoning why many PGA Tour players oppose a potential merger with LIV Golf.[41] Lavner stated that “if you are outside the top 50 in the PGA Tour [rankings], you are immediately in danger by the prospect of these LIV players coming back and playing on the PGA Tour.”[42] Essentially, many players who already struggle to earn a living throughout the PGA Tour season must now play against even more of the world’s best competition.[43]
Overall, change in professional golf is rarely swift, mimicking the nature of the sport itself. However, with McIlroy and other influential figures pushing for change, it’s clear that the status quo will not last forever. At the heart of this change lies a fundamental question: should golf remain a sport of individual entrepreneurs, or should it evolve to offer its players with the same financial security and protections that other professional athletes enjoy? Whether through incremental reforms or a complete overhaul of the system, one thing is certain: professional golf is entrenched in the modern digital age, and the current independent contractor status must adapt along with it.
JESSE STERN (guest writer) is a 1L at Villanova University Charles Widger School of Law and originally from Plymouth Meeting, PA. He is an avid golfer whose legal interests include client representation, contract negotiations, labor law, and employment law. His ultimate career goal is to be an NBA agent for players, coaches, and executives.
References:
[1] Photo by Trevor Johnson on Flickr
[2] Steve King, The Worker Classification Debate Comes to Professional Golf, Small Biz Labs (June 2022)https://www.smallbizlabs.com/2022/06/the-worker-classification-debate-comes-to-professional-golf.html?utm_source=chatgpt.com
[3] Ike Brannon, How Long Will the PGA Handicap Its Golfers?, Forbes (Feb. 2, 2022)https://www.forbes.com/sites/ikebrannon/2022/02/02/how-long-will-the-pga-handicap-its-golfers/
[4] See Id.
[5] See Id.
[6] Evan Rothman, How Much Money Do Tour Pros Really Keep from Each Check?, Golf.com (Jul. 6, 2023) https://golf.com/lifestyle/how-much-money-tour-pros-keep-each-check/#:~:text=To%20those%20pros%2C%20cleanliness%20is,Tuesday%20after%20a%20Sunday%20finish
[7] Associated Press, Rory McIlroy floats player contracts to boost sponsor value, ESPN (Jan. 10, 2024) https://www.espn.com/golf/story/_/id/39280822/rory-mcilroy-floats-player-contracts-boost-sponsor-value
[8] Bob Harig, Timeline: How LIV Golf Forced the PGA Tour to Adapt, Sports Illustrated (Mar. 12, 2024) https://www.si.com/golf/news/timeline-liv-golf-how-pga-tour-adapted.
[9] Alex Miceli, LIV Golf has Forced Everyone in the Game to Reimagine What Pro Golf Should Be, Sports Illustrated (Jan. 12, 2024) https://www.si.com/golf/news/timeline-liv-golf-how-pga-tour-adapted.
[10] See Id.
[11] Independent Contractor Defined, Internal Revenue Serv.,https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-defined
[12] Contract Worker vs. Employee: What’s the Difference?, Knit People (2022),https://www.knitpeople.com/blog/contract-worker
[13] Employee or Independent Contractor Classification Under the Fair Labor Standards Act, RIN 1235-AA43, U.S. Dep’t of Labor,https://www.dol.gov/agencies/whd/flsa/misclassification/rulemaking
[14] Employee or Independent Contractor Classification Under the Fair Labor Standards Act, 89 Fed. Reg. 1676 (Jan. 10, 2024),https://www.federalregister.gov/documents/2024/01/10/2024-00067/employee-or-independent-contractor-classification-under-the-fair-labor-standards-act
[15] Evan L. Conder, Independent Contractor Considerations, Lexology (2024), https://www.lexology.com/library/detail.aspx?g=6870e9f1-0b0e-47f1-af85-66d39ff8e475#:~:text=In%20response%20
[16] See Id.
[17] See Id.
[18] Ike Brannon, How Long Will the PGA Handicap Its Golfers?, Forbes (Feb. 2, 2022)https://www.forbes.com/sites/ikebrannon/2022/02/02/how-long-will-the-pga-handicap-its-golfers/
[19] Brett Knight, The World’s Highest-Paid Athletes 2024, Forbes (May. 16, 2024)https://www.forbes.com/lists/athletes/
[20] Official World Golf Ranking, Current World Ranking, OWGR, (Feb. 20, 2025)
[21] The Undercover Pro, What I Take Home from a $100,000 Check, Golf Digest (2024),
[22] See Id.
[23] Barry Plummer, How Much Does It Cost to Be a PGA Tour Pro? It’s More Than You Think, Golf Monthly (2024), https://www.golfmonthly.com/features/how-much-does-it-cost-to-be-a-pga-tour-pro-its-more-than-you-think.
[24] See Id.
[25] See Id.
[26] See Id.
[27] Tim Graham, PGA Tour players fought to unionize and failed 25 years ago. Today’s pros could have used it, N.Y. Times, (Jul. 10, 2023)
[28] See Id.
[29] See Id.
[30] See Id.
[31] See Id.
[32] Rory McIlroy Suggests Golf Players May Need Contracts, ABC News (Jan. 11, 2024), https://www.abc.net.au/news/2024-01-11/rory-mcilroy-suggests-golf-players-may-need-contracts/103308726.
[33] See Id.
[34] See Id.
[35] See Id.
[36] See Id.
[37] See Id.
[38] Jay Busbee, What Dustin Johnson’s Leap to Saudi-Backed LIV Means for Golf, Yahoo! Sports (Jun. 2, 2022) https://sports.yahoo.com/what-dustin-johnsons-leap-to-saudi-backed-liv-means-for-golf-160515515.html
[39] See Id.
[40] See Id.
[41] Sam Stone, Some PGA Tour players warned why they could be in real ‘danger’ if LIV Golf merger happens soon, The Golfing Gazette, (Feb. 20, 2025)https://www.thegolfinggazette.com/news/some-pga-tour-players-warned-why-they-could-be-in-real-danger-if-liv-golf-merger-happens-soon/
[42] See Id.
[43] See Id.
Comments