The organizers of golf's Dubai World Championship have cut prize money by a quarter because of the global economic downturn.

Citing the "developing global situation," European Tour officials earlier this week announced that prize money for the Race to Dubai bonus pool and the Dubai World Championship will be cut by 25 percent to $7.5 million each, reducing the total purse to $15 million. The winner of the bonus pool will receive $1.5 million, while the winner of the Dubai World Championship will take home $1.25 million.

The announcement expands the list of golf's losses, which earlier this year included the withdrawal of Deutsche Bank AG, Morgan Stanley, Wachovia Corp. and Northern Trust Corp. as tournament sponsors amid the biggest downturn since the Great Depression.