PGA Tour logo during the third round of the Travelers Championship on June 24, 2017 at the TPC River Highlands in Cromwell, Connecticut.
Fred Kfoury | Sportswire icon | Getty Images
Key lawmakers on Wednesday invited officials behind the proposed deal between the PGA Tour and rival LIV Golf, backed by Saudi Arabia, to testify at a Senate subcommittee hearing.
Senator Richard Blumenthal and Senator Ron Johnson, respectively chairman and senior member of the Senate Homeland Security Committee’s standing subcommittee on investigations, said the panel would hold a July 11 hearing on the merger.
Blumenthal, D-Conn. and Johnson, R-Wisc., asked tour commissioner Jay Monahan, LIV Golf CEO Greg Norman and Yasir al-Rumayyan of the Saudi Arabian Public Investment Fund.
IN letter to Monahan on Wednesday, senators said the subcommittee would investigate the proposed deal and “a Saudi fund’s investment in golf in the United States, the way forward for PIF-funded LIV Golf, the risks of foreign government investment in American cultural institutions, and the implications of this proposed deal for skilled golf in the United States.” United in the future.”
In response to the invitation, a spokesperson for the PGA Tour told CNBC that they “look forward to appearing before the Senate Subcommittee to answer their questions on the framework agreement, which we imagine keeps the PGA TOUR at the forefront of the way forward for skilled golf and advantages our players, our fans and our sport.
The tour didn’t say whether Monahan, who has been appointed future commissioner of the recent unit but has recently gone on leave as he recovers from an illness, will testify. The organization has to this point not defined what a medical ailment is.
The Public Investment Fund didn’t respond to the call for comment.
“Fans, players and anxious residents have many questions on the proposed deal between the PGA Tour and LIV Golf,” said Johnson, a rating member. “I look forward to hearing testimonials from those that are best placed to provide the public with an insight into the current state of skilled golf.”
The subcommittee of inquiry has broad powers to investigate every thing from corporate malfeasance to government waste. But committee hearings are relatively rare – this will likely be only the second this 12 months – and typically mark the early phase of a longer investigation.
This one is not any exception. Earlier this month, Blumenthal announced his intention to use the committee to investigate the merger of the PGA Tour and Saudi-backed LIV in light of Saudi Arabia’s actions. human rights violations.
He gave Norman and Monahan until June 26 deliver lots of of files and internal communications.
In a sign of how serious the probe could change into, Blumenthal later told CBS that if PGA Tour or LIV didn’t provide the information he was in search of, he could be willing to use “every tool at our disposal, including subpoenas and hearings.” recommendations for motion and laws.”
Blumenthal has expressed particular interest in whether the PGA Tour deserves to maintain its non-profit tax-exempt status as a business association that advantages its members.
Since the founding of the PGA Tour in 1929, it has evolved into a $1.5 billion giant driven mainly by big tournament revenue, broadcasting rights and licensing fees.
If LIV makes a large investment in the PGA Tour, it should allegedly create an unprecedented situation where a foreign investor will profit from purchasing a tax-exempt US organization.
On Wednesday, a spokesperson for the PGA Tour stressed that the U.S.-based group stays officially a business association and that the tour, and never LIV, will oversee any partnerships.
The PGA Tour is “working to negotiate a final deal, which is in the process [its members’] in the best interest and ensures that the tour guides any recent enterprise,” the representative said.
Shock and evaluation
Earlier this month, the PGA Tour announced a cope with a rival backed by Saudi Arabia that can end the ongoing dispute between the two entities. The entities said they might mix business operations to form a larger, soon-to-be-named enterprise, chaired by Al-Rumayyan.
After the deal was announced – a surprise after months of feuding and lawsuits – US officials pressed for more information on the origins of the deal and what it meant to the sport.
Democratic Senator Elizabeth Warren of Massachusetts and Ron Wyden of Oregon last week raised antitrust concerns, asking the Department of Justice to investigate the deal. Shortly thereafter, the Justice Department’s antitrust division informed the PGA Tour that it could review the proposed merger.
The proposed deal raised many questions. The PGA Tour and LIV Golf had traded in barbs for a while, with each leagues claiming that the other’s contracts and policies restricted golf talent and stifled proper competition.
Golfers were split between the two organizations as some left the tour for the high payouts paid by LIV.
Since its launch in 2022, LIV has been mired in controversy and criticism. The Public Investment Fund is just not actually a public company, as its name might suggest. It’s a sovereign wealth fund controlled by the Saudi Crown Prince, Muhammed bin Salman.
The fund has been accused of “sports laundering”, attempting to use LIV Golf to enhance the image of the oil-rich country and divert attention from the kingdom’s history of human rights abuses.