Topline
A Senate investigative subcommittee has asked the heads of Saudi-backed LIV Golf and the PGA Tour to testify before Congress on a proposed merger that would see the once-rival organizations combine into one, which has drawn widespread criticism and questioning over its reliance on Saudi Arabian funding.
Dustin Johnson of the the United States hits his tee shot on the 16th hole during the final round of … [+]
Key Facts
In three letters sent Wednesday, committee chairman Sen. Richard Blumenthal (D-Conn.) and ranking member Ron Johnson (R-Wis.) asked LIV CEO Greg Norman, Saudi Arabian Public Investment Fund governor Yasir al-Rumayyan and PGA Tour Commissioner Jay Monahan to testify in-person on July 11.
The letters say senators want more information on the planned agreement between the PGA and the Public Investment Fund, how any new entities formed through the agreement would be structured, the expected impact on PGA Tour and LIV Golf players, and the anticipated role of the Saudi Arabian fund in U.S. professional golf.
Blumenthal said the committee would also welcome player cooperation in the investigation, noting that some have spoken out against the agreement, the Hill reported.
The financial terms of the merger agreement have not been released, but the Public Investment Fund will hold the “exclusive right to further invest in the new entity.”
Representatives for the PGA Tour and LIV Golf did not immediately respond to request for comment.
His Excellency Yasir Al-Rumayyan celebrates with Greg Norman during day one of the LIV Golf … [+]
Key Background
LIV Golf was launched in 2021 under CEO and former golf No. 1 Norman. The Public Investment Fund of Saudi Arabia, the majority stakeholder of LIV Golf, quickly lured away some of the former top stars on the PGA Tour by offering them massive deals. Norman said 19 of the top 100 players in the world had signed up to play LIV Golf’s first event. Seventeen of those players, the ones with PGA Tour affiliation, were then suspended or told they were ineligible to compete in future PGA Tour events, drawing a decisive line between the two organizations. PGA officials spent the next year warning players to distance themselves from the Saudi league, while top players who moved to LIV—headlined by Phil Mickelson—filed a lawsuit against the PGA, accusing it of violating antitrust law. The PGA Tour, a nonprofit, stunned the world earlier this month when it said it would partner with LIV Golf to create a new, for-profit entity. Monahan, who went on medical leave just days after the merger announcement, has been publically slammed by both PGA players and the 9/11 Families United over concerns about Saudi Arabia’s human rights record.The Justice Department has also told the PGA Tour it will investigate the merger.
Crucial Quote
“The Saudis have been very explicit that they have a strategic objective here. They’ve been engaged in numerous malign activities antithetical to American interests and values,” Blumenthal told CBS on Wednesday, citing the killing of journalists, torture and imprisonment of critics.
Further Reading
What Is Likely Happening With The PGA Tour And LIV Golf Merger? (Forbes)
Justice Department Will Investigate PGA Tour-LIV Merger, Report Says (Forbes)
Golfers In The Dark: Uncertainty Continues To Surround PGA Tour-LIV Merger (Forbes)
Source: https://www.forbes.com/sites/maryroeloffs/2023/06/21/pga-liv-leaders-called-to-testify-before-congress-over-historic-merger/