U.S. Justice Department Reportedly Will Investigate PGA Tour-PIF Deal
It appears the planned merger between the PGA Tour, DP World Tour and Saudi Arabi’s Public Investment Fund, which owns LIV Golf, will be delayed.
Andrew Beaton and Louise Radnofsky of the Wall Street Journal reported Thursday the United States Justice Department notified the PGA Tour it will investigate the deal for the planned alliance over antitrust concerns.
This comes on the same week two senators, including Sen. Elizabeth Warren, sent a letter to the DOJ to investigate the deal citing the possibility of antitrust violations and Saudi Arabia’s human rights record. A Calif. congressman also proposed a bill that would remove the Tour’s tax-exempt non-profit status.
“The review projects to delay any deal significantly — even if it’s ultimately allowed,” Beaton tweeted. “A PGA Tour executive told employees that the outcome likely won’t be known for at least a year.”
European regulators have not made any reported action on the deal that was announced on June 6, but it would not be a surprise if antitrust concerns also came up.
PGA commissioner Jay Monahan intentionally kept the deal secret from many of the Tour’s top players, and they reportedly felt betrayed for staying loyal rather than taking a payday with LIV Golf.
It’s possible nothing comes out of this investigation, and the DOJ allows the planned merger to fall through. However, it appears fans will be kept outside of the loop as there isn’t a need to explain the full details of what a partnership between the PGA Tour and the PIF will look like.
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