PGA Tour, LIV Golf, Saudi Arabia PIF Representative Invited by Senate to Testify in Agreement Hearing
Representatives of the PGA Tour, LIV Golf and the Public Investment Fund of Saudi Arabia were sent by Sens. Richard Blumenthal (D-CT) and Ron Johnson (R-WI) invited to testify at a hearing in July regarding the recent landmark agreement between the parties following a broad power struggle in sports. professional golf. The hearing, scheduled for July 11 in Washington, DC, aims to gather more information regarding the framework of the agreement and its potential ramifications.
“Our goal is to uncover the truth about what happened in the PGA Tour’s deal with the Saudi Public Investment Fund and what the Saudi takeover will mean for the future of this beloved American institution. and our national interest,” Blumenthal said in Wednesday’s release. “Americans deserve to know what the structure and governance of this new entity will look like. The key parties to the agreement are best positioned to provide this information, and they owe it to Congress — and to people Americans – the public answer.”
Personal invitations have been sent to PGA Tour commissioner Jay Monahan, LIV Golf CEO Greg Norman and PIF governor Yasir Al-Rumayyan. Each letter asked individuals to prepare to discuss “the expected role of the PIF in professional golf in the United States.” Monahan is currently away from his daily duties as he recovers from an undisclosed medical condition.
Blumenthal serves as chairman of the United States Senate’s Permanent Subcommittee on Investigations, of which Johnson is a senior member. Blumenthal opened an investigation into the deal and requested documents from the PGA Tour and Monahan to determine the legality of the agreement, which ended ongoing litigation between the two parties.
The PGA Tour reported a $50 million loss with legal fees and a quick settlement that eased that spending. Monahan said a financial incompetence with PIF being an important factor in realizing the agreement. It comes at a time when the US Department of Justice investigated PGA Tour because of its antitrust practices.
Blumenthal is seeking to review the following documents:
- Records relating to the relationship between the PGA Tour and LIV Golf are not limited to the agreement
- Records relating to the relationship between the PGA Tour and PIF of Saudi Arabia, including communications between any representatives
- Records relating to the new agreement and all records relating to the “new, jointly owned, for-profit organization”
- Liaison between the PGA Tour commissioner, PGA Tour Board of Directors, PGA Tour Players Advisory Council and/or PGA Tour executive leadership regarding LIV Golf
- Records regarding any dispute between the PGA Tour and PIF, LIV Golf, Jay Monahan or Yasir Al-Rumayyan
- Records regarding the PGA Tour’s tax-exempt status under 510(c)(6) of the Internal Revenue Code
- Profile created in response to any law enforcement investigation into the PGA Tour’s agreement, communications with LIV Golf or PIF, and the PGA Tour’s tax-exempt status
- Organization chart and diagram created for new entity
Many legal experts have cited the Clayton Act of 1914 as a potential speed bump the deal would need to get through. The Clayton Act is intended to regulate business practices and prohibits anticompetitive mergers and acquisitions.
Blumenthal, in a statement shortly after the deal was announced, criticized the PGA Tour for reversing its stance after “criticizing Saudi Arabia’s money laundering and sports payments service.” [to] integrity of the sport of golf” and vowed to “closely monitor the structure of this agreement and its implications.”
Where this deal will ultimately go remains to be seen. The Golf Channel reports Tuesday that it has safeguards in place to ensure the PGA Tour maintains leadership of both the new entity and its existing circuit. The PGA Tour, which held a players meeting Tuesday night in Connecticut ahead of the Visitors’ Championship, intends to see it as a highlight in its efforts to ignite trust with members.
