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US Senator launches probe into PGA Tour, Saudi-backed LIV merger

  • By Al Mayadeen English
  • Source: Agencies
  • 12 Jun 2023 23:46
3 Min Read

Blumenthal sought information by June 26 on how the PGA Tour reached its merger deal with LIV Golf.

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  • US Senator launches probe into PGA Tour, Saudi-backed LIV merger
    A LIV Golf banner during a tournament (AFP)

US Democrat Senator Richard Blumenthal of Connecticut requested on Monday information about talks relating to the PGA Tour and LIV Golf's potential merger on Monday, Reuters reported.

Blumenthal, who heads the Senate Permanent Subcommittee on Investigations (PSI), sought information by June 26 on how the PGA Tour reached its deal with LIV Golf, as well as how any newly created organization would be organized and administered, including how the PGA Tour wants to maintain its tax-exempt status, as per the news agency.

Last week, the PGA Tour, DP World Tour, and Saudi-backed LIV circuit, which had been embroiled in a battle that has fragmented the sport, announced a deal to consolidate and become one single commercial body.

9/11 Families United, an organization representing the relatives of the victims of the September 11 attack, condemned the merger due to Saudi Arabia's role in it, especially over accusations against Riyadh over its human rights record.

Fox News mentioned that Yasir Al-Rumayyan, governor of Saudi Arabia's Public Investment Fund (PIF), which owns LIV, would chair the new merger, while Monahan would act as CEO.

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In letters sent to PGA Tour Commissioner Jay Monahan and LIV CEO Greg Norman, Blumenthal wrote that there were "serious questions regarding the reasons for and terms behind the announced agreement."

According to Blumenthal, "PGA Tour’s agreement with (Saudi Arabian Public Investment Fund) 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."

The US Senator touched on skepticism over the Saudis' attempt "to use investments in sports to further the Saudi government's strategic objectives."

"Critics have cast such Saudi investments in sports as a means of "sportswashing" — an attempt to soften the country’s image around the world — given Saudi Arabia’s deeply disturbing human rights record at home and abroad," he wrote.

The agreement might be examined by the Committee on Foreign Investment in the US (CFIUS), a Treasury-led commission that evaluates mergers to see if they endanger national security.

Last week, US Treasury Secretary Janet Yellen told CNBC that it was not immediately apparent that the PGA-LIV merger constituted a concern of national security.

On his part, the chairman of the Senate Finance Committee, Senator Ron Wyden, underlined that US authorities should examine whether the agreement would give the Saudis "improper control or access to U.S. real estate."

  • United States
  • golf
  • US
  • PGA Tour
  • Saudi Arabia
  • LIV Golf

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