The Department of Justice has launched an investigation into the planned merger between the PGA Tour and the Saudi-backed LIV Golf. This comes just one week after the PGA Tour announced its agreement to merge with LIV Golf, which is backed by the Saudi Arabia Public Investment Fund (PIF), an entity led by Saudi Crown Prince Mohammed bin Salman.
The DOJ’s latest investigation follows a previous one conducted last year into the golfing league over allegations of possible anticompetitive behavior. The PGA Tour was accused of using its monopoly powers to quash competition and discourage vendors, media companies, and others from working with the new circuit being financed by Saudi Arabia’s sovereign wealth fund.
The planned merger between the two golfing leagues has drawn the attention of many in Washington, with lawmakers expressing concerns about the implications. Senate Finance Committee Chairman Rod Wyden has launched a probe into the matter and has introduced legislation to remove PIF’s special tax exemption that applies to specific forms of investment by foreign governments.
In addition to the DOJ investigation and congressional scrutiny, U.S. Sens. Elizabeth Warren and Ron Wyden have urged U.S. Attorney General Merrick Garland to scrutinize the deal and take action if it violates federal antitrust laws. The senators wrote in a letter that the “PGA-LIV deal would make a U.S. organization complicit — and force American golfers and their fans to join this complicity — in the Saudi regime’s latest attempt to sanitize its abuses by pouring funds into major sports leagues.”
Furthermore, Chairman of the U.S. Senate’s Permanent Subcommittee on Investigations, Sen. Richard Blumenthal, has opened an inquiry into the planned alliance. Blumenthal stated that there is a clear case to be investigated about antitrust violations, and that the merger could result in an end to competition, a classic violation of competitive protection laws in the country.
The outcome of the announced merger is uncertain, and a senior PGA Tour executive has told employees that it could fall apart entirely if the sides cannot agree on specific terms. The regulatory review could take longer than a year, and the DOJ investigation adds to the uncertainty.
In conclusion, the DOJ’s investigation and congressional scrutiny into the PGA Tour-Saudi merger have raised concerns about antitrust violations and the implications of the deal. The investigation could take longer than a year, and the outcome of the merger remains uncertain.
References
- https://www.wsj.com/sports/golf/pga-tour-liv-golf-merger-investigation-antitrust-28d014bf
- https://thehill.com/regulation/court-battles/3553543-doj-probes-pga-tour-over-possible-anticompetitive-behavior/
- https://thehill.com/blogs/blog-briefing-room/4036580-pga-tour-agrees-to-merge-with-saudi-backed-rival-liv-golf/
- https://thehill.com/homenews/senate/4051786-senate-democrat-opens-wide-ranging-probe-into-pga-liv-merger/
- https://thehill.com
- https://www.espn.com/golf/story/_/id/37805785/pga-tour-liv-golf-dp-world-tour-announce-merger
- https://www.wsj.com/sports/golf/pga-tour-liv-golf-merger-investigation-antitrust-28d014bf
- https://www.espn.com/golf/story/_/id/37851787/senators-ask-attorney-general-review-pga-tour-liv-golf-deal
- https://www.finance.senate.gov/chairmans-news/wyden-launches-investigation-of-pga-saudi-pif-deal-announces-plan-to-revoke-saudi-pifs-special-tax-treat
- https://profile.usatoday.com/newsletters/sports/
- https://www.usatoday.com/story/sports/golf/2023/06/12/pga-tour-liv-golf-merger-subject-of-new-us-senate-investigation/70313511007/
- https://twitter.com/Tom_Schad
- https://www.usatoday.com/story/sports/golf/2023/06/15/congress-justice-department-to-investigate-pga-tour-liv-golf-deal/70326100007/
