Mickelson, DeChambeau Sue PGA Tour Alleging Antitrust Violations

Topline

A group of 11 LIV Golf players led by Americans Phil Mickelson and Bryson DeChambeau filed an antitrust lawsuit against the PGA Tour in federal court Wednesday, setting the stage for a contentious legal battle between the rival golf circuits.

Phil Mickelson, left, and Bryson DeChambeau, right, are among the 11 LIV Golf players who sued the … [+] PGA Tour.

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Key Facts

The PGA Tour—which has suspended all members who play in LIV Golf events—has acted in a “nakedly anticompetitive manner” and seeks the “destruction of competition,” the 11 golfers wrote in a complaint filed in the U.S. District Court of Northern California.

Three of the golfers—Talor Gooch, Matt Jones and Hudson Swafford—asked a judge to issue a temporary restraining order so they can play in the PGA Tour’s FedEx Cup Playoffs.

The suit comes as a surprise given the PGA Tour confirmed last month the Department of Justice had launched an antitrust investigation, and several legal experts told Forbes last month they expected golfers to await results from the federal probe as opposed to taking action of their own given the hefty legal expenses associated with antitrust suits.

Key Background

Financed by the Saudi Arabia’s sovereign wealth fund, LIV Golf has signed away 10 of the top 50 ranked golfers in the world thanks to huge contracts. The PGA Tour responded in June by suspending DeChambeau, Mickelson and other tour members slated to play in LIV Golf events. The PGA Tour has argued internally and externally that it has not acted in an anticompetitive manner, telling tour members in a memo obtained by Forbes last month it is “confident that it has acted, and will continue to act, in full compliance with the antitrust laws.” A 1990s antitrust investigation by the Federal Trade Commission did not find the PGA Tour guilty, a fact alluded to by the tour in the memo sent after news of the Justice Department investigation broke. However, Marc Edelman, a professor of law at Baruch College’s Zicklin School of Business, told Forbes last month that the results of the earlier probe may no longer be a fair precedent given the federal government’s recent handling of sports antitrust cases.

Chief Critic

PGA Tour Commissioner Jay Monahan accused the golfers suing the tour of “trying to use lawyers to force their way into competition alongside our members in good standing,” in a memo sent to players provided to Forbes and other outlets. Monahan only referred to LIV Golf as the “Saudi Golf League” in the letter.

Crucial Quote

“The players are right to have brought this action to challenge the PGA’s anti-competitive rules and to vindicate their rights as independent contractors to play where and when they choose,” LIV Golf spokesperson Jane MacNeille said in an emailed statement to Forbes. “Despite the PGA Tour’s effort to stifle competition, we think golfers should be allowed to play golf.”

Surprising Fact

The PGA Tour first suspended Mickelson in March for purportedly recruiting tour players to LIV Golf, the lawsuit alleges, far earlier than when his suspension was first announced along with 16 others in June. Mickelson is unable to apply for reinstatement until March 2024, according to the complaint.