Senator Initiates Probe Of PGA Tour And LIV Golf’s Planned Merger

Pro golf’s rift between the Saudi-funded upstart LIV and the incumbent PGA Tour has cast a pall over the sport for nearly a year and a half. However, last week, an abrupt and shocking conclusion came to this heated battle with the announcement of an agreement to unify the top rungs of men’s professional golf under one umbrella. Today, senator Richard Blumenthal has raised questions about the legality of the proposed deal.

The Chair of the Senate’s Permanent Subcommittee on Investigations sent letters to Jay Monahan and Greg Norman, the commissioners of the formerly embattled organizations, requesting records, documentation and emails related to the agreement between the PGA Tour and the Saudi Arabian Public Investment Fund which owns LIV Golf.

“While few details about the agreement are known, PIF’s role as an arm of the Saudi government and PGA Tour’s sudden and drastic reversal of position concerning LIV Golf raise serious questions regarding the reasons for and terms behind the announced agreement,” Blumenthal wrote in the letter.

“PGA Tour’s agreement with PIF regarding LIV Golf raises concerns about the Saudi government’s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution. PIF has announced that it intends to use investments in sports to further the Saudi government’s strategic objectives,” the Connecticut Democrat added.

Blumenthal’s requests for information include a demand of organizational charts delineating the corporate structure of LIV Golf as it stood previously as well as of the new for-profit umbrella entity created thanks to the agreement that also preserves the PGA Tour’s nonprofit status.

This comes on the heels of a pointed statement Blumenthal released the last week after the merger was announced.

“The PGA Tour has spent two years lambasting Saudi sports-washing and paying lip service the integrity of the sport of golf, which will now be used unabashedly by the Kingdom to distract from its many crimes. The PGA Tour has placed a price on human rights and betrayed the long history of sports and athletes that advocate for social change and progress. I will keep a close eye on the structure of this deal and its implications,” he wrote.

This could just be the tip of the investigational iceberg as last week Oregon Senator Ron Wyden, who chairs the Senate Finance Committee, questioned whether the agreement would give the Saudi’s inappropriate control or access to U.S. real estate.

“Hypocrisy doesn’t begin to describe this brazen, shameless cash grab. I’m going to dive into every piece of Saudi Arabia’s deal with the PGA,” he tweeted.

Senator Chris Murphy also offered an opinion on the agreement: “Are we really sure we want foreign dictatorships owning major American sports leagues?”

The Committee on Foreign Investment in the U.S or CFIUS which examines if mergers pose a risk to national security could be next up to the plate. Although Janet Yellen did tell CNBC last Wednesday that harm due to the merger was not immediately obvious.