The PGA Tour, LIV Golf, and Saudi Arabia’s sovereign wealth fund have jointly requested a federal judge in California to dismiss the ongoing litigation that has brought golf’s economic and power structure into the American court system. This request, known as the “dismissal with prejudice,” ensures that the case cannot be refiled. The timing of this request comes shortly after the tour and the wealth fund announced a potential partnership, although the deal still faces scrutiny and may take months to finalize.
Judge Beth Labson Freeman, who has been overseeing the case, is expected to approve the dismissal, as it is a significant element of the tentative agreement between the tour and the wealth fund. By ending the litigation, LIV, the PGA Tour, and the wealth fund aim to prevent damaging revelations and expensive legal bills. Additionally, dismissing the case eliminates one avenue for recourse if the new alliance were to fall apart.
The Justice Department, already conducting an antitrust inquiry into men’s professional golf, is likely to closely review the proposed partnership. There is a possibility that they could block the deal or demand modifications. Furthermore, two Senate panels have requested information regarding the transaction and its impact. Notably, the PGA Tour’s board has yet to approve the agreement.
Various aspects of the agreement itself remain uncertain, including the valuations of the tour, LIV, and the DP World Tour’s assets that will be included in the new for-profit venture. Jay Monahan, the tour’s commissioner, is anticipated to serve as the company’s CEO, while Yasir al-Rumayyan, the wealth fund’s governor, is expected to become its chairman. The PGA Tour will hold the majority of seats on the new company’s board, but the wealth fund will possess substantial power to determine its funding, granting the Saudis significant influence.
Until June 6, the PGA Tour had been cautioning against allowing Saudi money and influence to infiltrate golf, which led to the costly litigation in California. The contentious legal proceedings began last August when 11 LIV players, including major tournament champions Phil Mickelson and Bryson DeChambeau, filed a lawsuit accusing the tour of antitrust violations. LIV joined the case later that month. Additionally, the tour pursued its own claims against LIV, alleging that the rival organization had interfered with existing player contracts. The court granted Judge Freeman’s approval for the tour to include the wealth fund and al-Rumayyan in its case, exerting pressure on the Saudis and their allies due to their superior financial resources.
Throughout the dispute, the tour, the wealth fund, and LIV engaged in a fierce battle over evidence collection, with many court filings being redacted. However, a federal magistrate judge concluded that the wealth fund was the driving force behind the establishment, funding, oversight, and operation of LIV, undermining their claim of being a passive investor in golf. A trial was not expected until next year.
Prior to the filing by the tour and LIV on Friday, The New York Times motioned to unseal records in the case. The Times argued that there is a substantial and legitimate public interest in the proceedings and their outcome. They further suggested that the anticipated merger between the parties could potentially nullify concerns of competitive harm. The Times emphasized the need to revisit the decision to seal records as circumstances change and new facts emerge.
It remains uncertain when the judge will rule on these motions filed on Friday.
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