PGA Tour to Provide Testimony at Senate Hearing on LIV Merger

In a Senate subcommittee hearing, key lawmakers have invited the officials involved in the proposed deal between the PGA Tour and Saudi-backed rival LIV Golf to testify. The hearing, which will take place on July 11, will be held by Sen. Richard Blumenthal and Sen. Ron Johnson of the Senate Homeland Security Committee’s permanent subcommittee on investigations. The lawmakers have requested the testimony of PGA Tour commissioner Jay Monahan, LIV Golf CEO Greg Norman, and Yasir al-Rumayyan of the Saudi Arabia Public Investment Fund.

In a letter addressed to Monahan, the senators state that the subcommittee will examine various aspects of the proposed deal, including the Saudi fund’s investment in golf in the United States, potential risks associated with foreign government investment in American cultural institutions, and the implications for professional golf in the United States moving forward.

The PGA Tour spokesperson expressed their anticipation for the opportunity to address the Senate Subcommittee’s questions and stated that they believe the framework agreement will ensure the PGA TOUR remains at the forefront of professional golf’s future, benefiting players, fans, and the sport as a whole. It is unclear whether Monahan will testify due to a recent medical leave of absence.

The Public Investment Fund has not yet responded to the invitation for comment.

Sen. Ron Johnson emphasized the need for insight regarding the current state of professional golf and the planned agreement, stating that fans, players, and concerned citizens have many questions.

This hearing by the subcommittee on investigations is infrequent, with this being only the second one this year. Typically, such hearings mark the early stages of a more extended investigation.

Senator Blumenthal has announced his intention to probe the merger between the PGA Tour and LIV Golf further, particularly in light of Saudi Arabia’s human rights abuses. Blumenthal has given both Norman and Monahan until June 26 to provide various records and internal communications.

Blumenthal has stated that if the information he seeks is not provided by the PGA Tour or LIV, he is willing to use “any of the tools at our disposal, including subpoenas and hearings, recommendations for action and legislation.”

Blumenthal is particularly interested in assessing whether the PGA Tour should maintain its tax-exempt nonprofit status as a business association that benefits its members. Over the years, the PGA Tour has grown into a significant entity, generating billions in revenue.

If LIV Golf makes a major investment in the PGA Tour, it raises concerns about a foreign investor benefiting from an American tax-exempt organization. However, the PGA Tour has clarified that it remains a business association overseeing any partnership developments.

Following the surprise announcement of the deal between the PGA Tour and its Saudi-backed rival, officials in the United States have begun demanding more information about the origins and implications of the merger.

Sens. Elizabeth Warren and Ron Wyden have raised antitrust concerns and requested an investigation by the Justice Department. Subsequently, the DOJ’s antitrust division confirmed its review of the proposed merger.

The agreement has sparked questions within the golf community, as both the PGA Tour and LIV Golf have accused each other of restricting talent and impeding fair competition. Some golfers have chosen to leave the tour for the higher paying opportunities offered by LIV.

Since its establishment in 2022, LIV Golf has faced controversy due to its association with the Saudi crown prince-controlled sovereign wealth fund, the Public Investment Fund. The fund has been accused of using LIV Golf to improve Saudi Arabia’s image and divert attention from the country’s human rights violations.