PGA Tour and LIV Golf merger being investigated by DOJ: Report
Jack Birle
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The Justice Department will reportedly review the planned merger between the PGA Tour and the Saudi-backed LIV Golf.
The DOJ investigation, on the basis of antitrust concerns, is being reported more than a week after the competing golf leagues announced plans to merge.
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The PGA Tour is under investigation by the Justice Department for allegations of anti-competitive practices related to suspending golfers who defected to LIV Golf, but the new merger is now reportedly under similar scrutiny.
The Federal Trade Commission typically handles sports mergers, but the Justice Department appears to be taking the reins in investigating the blockbuster golf merger.
The agreement announced last week between the PGA Tour, DP World Tour, and Saudi Arabia’s Public Investment Fund will create a new unnamed for-profit entity that will combine the commercial businesses of the three. The agreement also maintains PGA Tour Inc., a tax-exempt organization, will remain in place and will retain “administrative oversight of events for those assets contributed by the PGA TOUR, including the sanctioning of events.”
In a statement announcing the merger, PGA Tour Commissioner Jay Monahan said the merger would “create an organization that will benefit golf’s players, commercial and charitable partners and fans.”
“We are pleased to move forward, in step with LIV and PIF’s world-class investing experience, and I applaud PIF Governor Yasir Al-Rumayyan for his vision and collaborative and forward-thinking approach that is not just a solution to the rift in our game, but also a commitment to taking it to new heights. This will engender a new era in global golf, for the better,” Monahan said.
LIV Golf was one of Saudi Arabia’s many investments in sport, with the PGA Tour reportedly coming to the table to merge with the upstart league because it could not compete with the seemingly endless money LIV had access to. A PGA spokesperson said that explanation was an “oversimplification.”
Shortly after the DOJ investigation was reported, the Senate Finance Committee announced it is opening a “wide-ranging investigation” into the planned merger. Committee Chairman Ron Wyden (D-OR) sent a letter to PGA leadership requesting information regarding the planned agreement and possible implications regarding national security on Thursday.
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The reported dual investigations come as the golf world is focused on the U.S. Open, which is being held at the exclusive Los Angeles Country Club for the first time.
The Justice Department declined to comment on the investigation when contacted by the Washington Examiner.