The PGA TOUR logo is seen throughout the second round of the Farmers Insurance Open at Torrey Pines South on January 29, 2021 in San Diego, California.
Ben Jared | PGA Tour | Getty Images
The Department of Justice’s antitrust division has told PGA Tour that it can review the organization’s proposed merger with Saudi Arabian-funded LIV Golf, an NBC News source said Thursday.
The Department of Justice and LIV Golf declined to comment.
In a press release to CNBC, the PGA Tour said: “We’re confident that as all stakeholders learn more about how the PGA TOUR will run this latest enterprise, they are going to understand the way it advantages our players, fans and the game while protecting America’s golf institution “.
A source aware of the situation says that any interest from the Justice Department could be an extension of a previous investigation, and it could not be unusual for US antitrust authorities to review a transaction of this profile. In addition they claim that the review doesn’t suggest that the deal violates antitrust laws.
The Department of Justice was already investigating skilled golf in light of the dispute with LIV.
The announcement of the deal last week immediately sparked antitrust concerns.
This week, Democratic Senator Elizabeth Warren of Massachusetts and Ron Wyden of Oregon called on the Department of Justice to launch an investigation into the deal. Senator Richard Blumenthal, D-Conn., also launched an investigation into the deal. Wyden took off his own investigation Thursday.
The PGA Tour’s once hostile relationship with LIV has already been under investigation by federal prosecutors, who launched an investigation last 12 months into whether the PGA Tour engaged in anti-competitive behavior.
LIV, which is backed by a so-called Public Investment Fund controlled by Saudi Crown Prince Mohammed bin Salman, divided the professional golf world when it emerged as a PGA Tour rival.
The Rookie League’s ties to the dominion, with its disgusting human rights record, have sparked a swarm of controversy. But with the assistance of reported $2 billion investments from the Crown Prince’s fund, LIV brandished huge prizes and perks and managed to lure famous golfers to play in his tournaments.
Former President Donald Trump hosted an LIV tournament at his Recent Jersey golf club last summer, sparking outrage from critics of the dominion – including families and survivors of the 9/11 terrorist attacks.
The PGA Tour and LIV Golf battled on and off the court, and PGA Tour Commissioner Jay Monahan openly criticized competitive league, which makes the announcement of their proposed merger all of the more surprising. Last week’s announcement noted that the linkage would result in a mutual end to all pending litigation.
If the merger goes through, each entities will mix their operations and rights right into a latest for-profit company. The PGA Tour board may have to approve the deal, Monahan told the players in a memo.
The PGA Tour revealed on Tuesday that Monahan is currently recovering from an unspecified medical issue and is taking a leave of absence.