Senators call PGA Tour, Saudi officials to testify about proposed deal

Key lawmakers connected Wednesday invited the officials down the proposed deal betwixt the PGA Tour and Saudi-backed rival LIV Golf to attest astatine a Senate subcommittee hearing.

Sen. Richard Blumenthal and Sen. Ron Johnson, the president and ranking subordinate of the Senate Homeland Security Committee's imperishable subcommittee connected investigations, respectively, said the sheet volition clasp a proceeding July 11 connected the merger.

Blumenthal, D-Conn., and Johnson, R-Wisc., requested grounds from the tour's commissioner, Jay Monahan, LIV Golf CEO Greg Norman and Yasir al-Rumayyan of the Saudi Arabia Public Investment Fund.

In a letter to Monahan connected Wednesday, the senators said the subcommittee would analyse the projected woody and the Saudi fund's "investment successful play successful the United States, the aboriginal of the PIF-funded LIV Golf, the risks associated with a overseas government's concern successful American taste institutions, and the implications of this planned statement connected nonrecreational play successful the United States going forward."

Representatives for the circuit and PIF didn't instantly respond to requests for comment.

"Fans, the players, and acrophobic citizens person galore questions astir the planned statement betwixt the PGA Tour and LIV Golf," Johnson said successful a release. "I look guardant to proceeding grounds from the individuals who are successful the champion positions to supply penetration to the nationalist regarding the existent authorities of nonrecreational golf."

The subcommittee connected investigations has wide jurisdiction to probe everything from firm abuses to authorities waste. But committee hearings are comparatively uncommon — this 1 volition beryllium lone the 2nd this twelvemonth — and they typically people the aboriginal signifier of a longer investigation.

This 1 is nary exception. Earlier this month, Blumenthal announced his volition to usage the committee to investigate the merger betwixt the PGA Tour and the Saudi-backed LIV successful airy of Saudi Arabia's human rights abuses.

He gave Norman and Monahan until June 26 to furnish hundreds of records and interior communications.

In a motion of however superior the probe could become, Blumenthal aboriginal told CBS that if the PGA Tour oregon LIV fails to supply the accusation helium is seeking, helium would beryllium consenting to usage "any of the tools astatine our disposal, including subpoenas and hearings, recommendations for enactment and legislation."

Blumenthal has expressed a peculiar involvement successful whether the PGA Tour deserves to support its taxation exempt nonprofit presumption arsenic a concern relation that benefits its members.

Since the PGA Tour's founding successful 1929, it has evolved into a $1.5 cardinal behemoth, fueled mostly by large tourney revenues, broadcast rights and licensing fees.

If LIV makes a large concern successful the PGA Tour, it would ostensibly make an unprecedented concern wherever a overseas capitalist would basal to payment from buying into an American taxation exempt organization.

Earlier this month, the PGA Tour announced the woody with its Saudi-backed rival that would extremity pending litigation betwixt the 2 entities. The entities person said they would merge concern operations to signifier a larger, soon-to-be-named endeavor chaired by Al-Rumayyan.

Monahan, who was named aboriginal commissioner of the caller entity, precocious went connected a leave of absence arsenic helium recuperates from a aesculapian condition. The quality of the aesculapian information has truthful acold not been specified.

In the aftermath of the woody announcement — which came arsenic a astonishment pursuing months of feuding and lawsuits — U.S. officials started pressing for much accusation astir the genesis of the woody and what it means for the sport.

Democratic Sens. Elizabeth Warren of Massachusetts and Ron Wyden of Oregon past week raised antitrust concerns, asking the Justice Department to analyse the deal. Soon after, the DOJ's antitrust part informed the PGA Tour that it would reappraisal the projected merger.

At the time, the PGA Tour said successful a statement, "We are assured that erstwhile each stakeholders larn much astir however the PGA TOUR volition pb this caller venture, they volition recognize however it benefits our players, fans, and athletics portion protecting the American instauration of golf."

The circuit has besides insisted the woody isn't a merger and that the Saudis' money volition beryllium a number investor.

The projected statement has stirred questions crossed the board. The PGA Tour and LIV Golf had been trading barbs for immoderate time, and some leagues had claimed that the other's contracts and policies restricted play endowment and stifled due competition.

Golfers person been divided betwixt the 2 organizations, arsenic immoderate near the circuit for the lofty paychecks doled retired by LIV.

Since its motorboat successful 2022, LIV has been mired successful contention and criticism. The Public Investment Fund is not, successful fact, publically held, arsenic its sanction mightiness suggest. It is simply a sovereign wealthiness money controlled by the Saudi crown prince, Muhammed bin Salman.

The money has been accused of "sportswashing," trying to usage LIV Golf to amended the representation of the lipid affluent federation and distract from the kingdom's past of quality rights violations.