Saudi-backed LIV Golf and the PGA Tour have taken a significant step towards resolving their legal dispute by filing a motion to dismiss their antitrust lawsuit and countersuits. This move comes after more than 10 months of costly legal proceedings and marks the transformation of their disagreement into a fruitful business partnership. The filing, made in a northern California federal court, is primarily procedural, aligning with the groundbreaking agreement reached on June 6. Under this agreement, Saudi Arabia’s national wealth fund, the PGA Tour, and the European Tour formed a new for-profit company to facilitate commercial endeavors.
In addition to putting an end to the antitrust complaints, the motion also seeks the dismissal of an appeal related to whether the Public Investment Fund (PIF) and its governor, Yasir Al-Rumayyan, should be compelled to provide testimony. The PIF and Al-Rumayyan were attempting to claim an exemption from the Foreign Service Immunity Act, arguing that their involvement with LIV Golf, a commercial enterprise, warranted protection. However, a federal magistrate ruled against their exemption. Consequently, LIV Golf and the PGA Tour have decided to resolve their legal battle amicably.
Renowned golfers Phil Mickelson and Bryson DeChambeau were among the 11 players who initially sued the PGA Tour in August when they faced suspension for joining LIV Golf. As an incentive, LIV Golf offered these players signing fees of over $100 million, in addition to $25 million in prize money for tournaments featuring fields of 48 players, each with guaranteed earnings. The lawsuit claimed that the PGA Tour was unfairly leveraging its monopoly power to suppress competition. While the PGA Tour initially secured a victory in court when a temporary restraining order was denied, allowing them to prohibit three LIV Golf players from participating in their postseason, the June 6 agreement aimed to consolidate the PGA Tour and LIV under one organizational structure.
Subsequently, LIV Golf joined the lawsuit, leading to all 11 players withdrawing their participation. In a countermove, the PGA Tour filed a countersuit accusing LIV of “tortious interference” by enticing top players to breach their contracts under the premise that the tour’s rules were unenforceable. A jury trial is not expected until at least mid-2024 as both parties continue to navigate discovery challenges. However, the case is not entirely concluded. The New York Times has filed a motion seeking to intervene and unseal documents, which will be heard on August 3.
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