Topline
The Department of Justice is investigating the PGA Tour for committing antitrust violations during its ongoing battle against the upstart LIV Golf, a PGA Tour spokesperson confirmed to Forbes Monday, setting the stage for a momentous legal challenge for the PGA Tour as it fights to ward off its new challenger whose funding from the Saudi Arabian government has lured many of golf’s top stars away from the PGA Tour.
PGA Tour Commissioner Jay Monahan addresses the media during a press conference prior to the … [+]
Key Facts
The Wall Street Journal first reported on the probe.
The PGA Tour has come down hard on any of its golfers tempted by LIV Golf, and suspended all golfers who participate in any events on the new tour – a move LIV Golf called “vindictive.”
The Justice Department has contacted the agents of several golfers as part of the investigation, asking about the PGA Tour’s response to LIV Golf and control of players’ participation in events not sanctioned by the PGA Tour, a source told the Journal.
The Department of Justice and LIV Golf did not immediately respond to Forbes’ request for comment.
Crucial Quote
“This was not unexpected. We went through this in 1994 and we are confident in a similar outcome,” a PGA Tour spokesperson said in a statement to Forbes, referring to a 1990s Federal Trade Commission investigation into antitrust behavior from the tour that failed to find the PGA Tour guilty of any wrongdoing.
Key Background
LIV Golf held its first-ever tournament last month and has already made waves throughout the golf world, signing nine of the sport’s top-40 ranked players thanks to contracts reportedly worth into the hundreds of millions and larger tournament prize money pools. PGA Tour Commissioner Jay Monahan has previously accused LIV Golf of engaging in poor faith business dealings, saying last month: “We welcome good, healthy competition. The LIV Saudi golf league is not that. It’s an irrational threat; one not concerned with the return on investment or true growth of the game.”
What To Watch For
Any political fallout of the investigation. News of the Justice Department probe comes days before President Joe Biden travels to Saudi Arabia, where he will meet with Crown Prince Mohammed bin Salman for the first time since a U.S. probe found the Saudi Arabian leader ordered the 2018 murder of Washington Post journalist Jamal Khashoggi.
Further Reading
Justice Department Is Investigating PGA Tour Over Potential Antitrust Violations in LIV Golf Battle (Wall Street Journal)
6 Numbers That Show How Saudi Money Forever Changed Golf (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2022/07/11/feds-launch-probe-into-pga-over-response-to-rival-liv-golf/