Thoughts on Jay Monahan's Use of the Private Jet?

[iacas]

The PGA Tour’s High-Flying Corporate Expenditures

---

Commissioner Jay Monahan is required by the Tour to travel by private jet for both business and pleasure. That isn’t disclosed in the nonprofit Tour’s annual tax filings.

Monahan travels regularly, for both business and pleasure, on the private jet, which the nonprofit PGA Tour owns through a for-profit subsidiary. The Tour’s private jet use, however, can’t be gleaned from the annual tax filings required of all nonprofits. Those filings require a nonprofit to provide a narrative description of certain benefits offered to top officials, including private-jet travel, which the Internal Revenue Service calls part of “charter” travel.

The most recently available filing for the PGA Tour says that, in “limited cases,” top executives “may utilize charter or first class travel for business” trips, citing security, privacy or efficiency reasons.

The PGA Tour’s actual policy, however, is different from what is described in the tax filings. The Tour told The Wall Street Journal that Monahan is required by its Policy Board, which includes players, to use the corporate plane for all air travel—business and personal—because it provides the “necessary level of efficiency, privacy, and security.”

[dennyjones]

1 hour ago, iacas said:

. The Tour told The Wall Street Journal that Monahan is required by its Policy Board, which includes players, to use the corporate plane for all air travel—business and personal—because it provides the “necessary level of efficiency, privacy, and security.”

This sort of defines the guidelines of its use.  

[Vinsk]

I don’t think it really matters. That LIV idiot really wants to compare the use of a private jet to atrocities against humankind?  And I’m quite sure Greg Norman isn’t flying coach.

[boogielicious]

9 hours ago, Vinsk said:

I don’t think it really matters. That LIV idiot really wants to compare the use of a private jet to atrocities against humankind?  And I’m quite sure Greg Norman isn’t flying coach.

I’m sure Greg thinks he’s a better pilot than a Blue Angel too!

It’s a non-issue for me. Plus during the worst of the pandemic, it was the safest way to fly.

[klineka]

My main question is if there is a rule that states Monahan must use the private jet for all air travel, doesn't that mean they weren't truthful in their filing?

Quote

in “limited cases,” top executives “may utilize charter or first class travel for business” trips

It's not "limited cases" or "for business" trips if a top executive is required to do it for every single business and personal flight.

 

I also question the "necessary level of privacy and security" aspect. He's just simply not that well known of a public figure outside of hardcore golf fans. Especially before all the LIV stuff and even probably current day where he's been a bit more visible/in the news, if he were to fly commercial I highly doubt he would have random people constantly coming up to him invading his privacy or posing a security risk to him. 

[bkuehn1952]

The whole idea that the PGA Tour is a "non-profit" is a pile of manure.

It would have been interesting to see and hear how the policy that "forces" Jay Monahan to fly in the private jet was developed. A bunch of millionaires "forcing" their leader, against his will, to fly via private jet.

Ultimately, I give the legal wordsmiths 5 stars.  They say "limited basis" and so the policy is limited, limited to Jay Monahan and the occasional other users.

[colin007]

I wouldn't even know Jay Monahan if we were sharing the same urinal.

[iacas]

1 hour ago, bkuehn1952 said:

The whole idea that the PGA Tour is a "non-profit" is a pile of manure.

How do you figure?

In many ways keeping that status limits them.

[GolfLug]

I don't have a problem with him flying in private jets for business as time/efficiency is a very valid reason for it but personal use is crossing the line IMO. Him needing security when flying for personal/pleasure use is out there. Does he have bodyguards too? 

I hardly think this is a case of JM being an obedient servant of the Tour and 'only doing what he is being told'. Who here doesn't think he most possibly scripted what he should be required (wink wink) to do?

 

[iacas]

1 hour ago, GolfLug said:

I don't have a problem with him flying in private jets for business as time/efficiency is a very valid reason for it but personal use is crossing the line IMO. Him needing security when flying for personal/pleasure use is out there. Does he have bodyguards too? 

I hardly think this is a case of JM being an obedient servant of the Tour and 'only doing what he is being told'. Who here doesn't think he most possibly scripted what he should be required (wink wink) to do?

And yet the article says he’s required to use it by the policy board or whatever.

[Darkfrog]

Hit with a WSJ paywall, but I kind of feel like this is a non-story. And possibly feels like a PR piece drummed up by LIV to make the PGA Tour and more specifically Jay Monahan look bad.

My wife worked for a couple non-profits and their executives and board members had many lavish perks that were just part of doing business with executive/board member type people. I think often we intuitively associate "non-profit" with an organization being frugal/practical, which isn't necessarily the case. 

[GolfLug]

30 minutes ago, iacas said:

And yet the article says he’s required to use it by the policy board or whatever.

Yes and I have no issue with it if it is part of his taxable compensation. Him being required by the policy  board sounds like it isn't. 

I am sure JM's compensation is well deserved but I am not sure any part of personal travel being tax free is ethical for an NPO executive. I don't see the justification.

Edited September 16, 2022 by GolfLug

[chspeed]

28 minutes ago, GolfLug said:

Yes and I have no issue with it if it is part of his taxable compensation. Him being required by the policy  board sounds like it isn't.

This. Making it a requirement is to allow them to argue that he can expense the costs. However the travel still must be business-related. If he or the PGA is writing off personal trips, that's clearly a no-no.

Not that I care.

[cutchemist42]

I'm surprised by how much he makes compared to other higher paying leagues. Seems like an overpayment. The amount of employees also seems a bit high compared to other leagues.

 

That's what surprised me.

[Big Lex]

A pro sports commissioner needs to travel exclusively by private jet for reasons of efficiency, privacy, and security? So because he's a commissioner, he can't wait in security lines at airports? Because he's a commissioner, he can't be expected to sit next to a stranger on a plane? Are we worried that a foreign power will steal PGA Tour secrets if he travels commercial? 

I know high level executives in many businesses and probably government and military officials use private air travel for personal trips, and I get it, it's a perk, it's fine. But the policy statement on it is pretty ridiculous on the surface. I suppose there is some legal or tax code reason why this statement is in there but geez. 

[iacas]

1 hour ago, GolfLug said:

taxable compensation

No. That’d be ridiculous.

1 hour ago, chspeed said:

If he or the PGA is writing off personal trips, that's clearly a no-no.

Pretty sure none of you are tax lawyers.

Nor am I to be clear.

28 minutes ago, cutchemist42 said:

I'm surprised by how much he makes compared to other higher paying leagues. Seems like an overpayment. The amount of employees also seems a bit high compared to other leagues.

That's what surprised me.

Other leagues are set up differently. With owners.

[dennyjones]

I think a lot of people here are over looking the fact that all flight is required to be private based upon the board's policy.  

[imsys0042]

I really don’t see this as an issue beyond what a lot of executives get as perks.  It might be in writing this way to shut people up about it if he is using it for personal use.   
 

I personally think personal use of company property should incur some type of limit or usage charge.  However, lots of companies give things like this as an executive perk free of charge.