During the second round of the Farmers Insurance Open at Torrey Pines South on January 29, 2021 in San Diego, California, the PGA TOUR logo was prominently displayed. This event was attended by Ben Jared, a member of the PGA Tour’s Getty Images team.
A reliable source informed NBC News on Thursday that the Department of Justice’s antitrust division will conduct a review of the proposed merger between the PGA Tour and Saudi-funded LIV Golf. The Justice Department and LIV Golf declined to comment on the matter.
Responding to CNBC, the PGA Tour expressed confidence that all stakeholders, upon learning more about how the PGA Tour will lead this new venture, will understand its benefits to players, fans, and the sport of golf, while also safeguarding the American institution of golf.
According to a knowledgeable source, any interest shown by the DOJ would be an extension of a previously existing investigation and would not be seen as unusual for U.S. antitrust authorities to review a transaction of this nature. It is also important to note that a review does not automatically indicate a violation of antitrust laws.
There was already an ongoing investigation by the DOJ into professional golf, specifically related to the litigation involving LIV Golf.
The announcement of the merger last week immediately raised concerns about antitrust issues.
This week, Democratic Senators Elizabeth Warren of Massachusetts and Ron Wyden of Oregon wrote to the DOJ, urging them to initiate a probe into the agreement. Additionally, Senator Richard Blumenthal of Connecticut opened his own investigation into the deal. Senator Wyden took further action by launching his own investigation on Thursday.
The PGA Tour’s previous contentious relationship with LIV Golf has already drawn scrutiny from federal prosecutors, who started investigating whether the PGA Tour had engaged in anticompetitive behavior.
LIV Golf, which is supported by the Public Investment Fund controlled by Saudi Arabia’s Crown Prince Mohammed bin Salman, created divisions within the professional golf community when it emerged as a rival to the PGA Tour.
The league’s association with a country known for its human rights violations sparked considerable controversy. However, with a reported $2 billion investment from the crown prince’s fund, LIV Golf enticed top golfers to participate in its tournaments by offering substantial prizes and perks.
Former President Donald Trump held a LIV tournament at his New Jersey golf club last summer, which generated backlash from critics of the Saudi Arabian government, including families and survivors of the 9/11 terrorist attacks.
PGA Tour Commissioner Jay Monahan has publicly criticized the rival league, making the announcement of the proposed merger all the more surprising. The merger would result in the resolution of all pending litigation between the PGA Tour and LIV Golf, as stated in the announcement last week.
If the merger is approved, the two organizations will combine their businesses and rights to form a new for-profit company. The PGA Tour policy board will need to approve the agreement, as stated in a memo to players by Commissioner Monahan.
In other news, the PGA Tour recently announced that Commissioner Monahan is currently on a leave of absence as he recovers from an undisclosed medical issue.
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