The Senate Permanent Subcommittee on Investigations will convene a hearing on July 11th to delve into the recently announced agreement between the PGA Tour, the Saudi Arabia Public Investment Fund (PIF), and the European tour. This agreement creates a unified commercial entity encompassing the business and rights of these golfing organizations.
Senator Richard Blumenthal (D-Conn.), who leads the subcommittee, stated the hearing aims to shed light on the details surrounding the deal and its implications for the future of professional golf in the U.S. He emphasized the importance of understanding the new entity's structure, governance, and the overall impact of the Saudi investment. Blumenthal has invited PGA Tour Commissioner Jay Monahan, PIF Governor Yasir Al-Rumayyan, and LIV Golf CEO Greg Norman to testify.
This investigation follows a letter sent by Monahan to lawmakers on June 9th, just days after the surprise merger announcement. In the letter, Monahan argued that the PGA Tour was forced to contend with Saudi Arabia's attempt to reshape the golfing world through LIV Golf, citing the U.S.'s geopolitical relationship with the kingdom.
LIV Golf had previously attracted top golfing talent with lucrative signing bonuses, leading the PGA Tour to increase its own tournament prize money in response. The merger aims to resolve the ensuing legal battles and consolidate the sport.
The PGA Tour expressed its willingness to cooperate with the Senate subcommittee, emphasizing that the agreement safeguards the tour's leadership position within professional golf while benefiting players, fans, and the sport itself. They highlighted the immediate cessation of litigation with LIV Golf as a positive initial outcome and look forward to further discussions with players to finalize an agreement that serves their best interests.
The initial announcement outlined that Al-Rumayyan would chair the new company, with Monahan as CEO. They would be joined on the executive committee by PGA Tour board members Ed Herlihy and Jimmy Dunne. However, Monahan has since taken a leave of absence for medical reasons, leaving two other executives to manage daily operations. It has also been reported that Greg Norman was informed of the deal shortly before its public announcement.
In addition to the Senate investigation, the Department of Justice is also in the early stages of reviewing the agreement for potential antitrust violations. This adds another layer of scrutiny to the already complex deal.
