The US Senate is investigating the planned commercial merger between the PGA Tour, DP World Tour and Saudi Arabian Public Investment Fund (PIF).
Richard Blumenthal, chairman of the permanent subcommittee on investigation, has written to the PGA Tour and LIV Golf, requesting all documents relating to the plan.
This follows last week’s shock announcement that the PGA Tour and the DP World Tour, golf’s two major traditional circuits, were merging with the Saudi Arabian-backed LIV Golf tour, ending the huge divide within the sport.
“PIF’s role as an arm of the Saudi government and PGA Tour’s sudden and drastic reversal of position concerning LIV Golf raises serious questions.”
Richard Blumenthal
Before the agreement to merge, PGA’s rivalry with LIV included legal action between the two. The entities agreed to squash all pending litigation as part of their plan to combine commercial businesses and rights into a yet-unnamed for-profit company.
The investigation is set to focus on the US-based PGA Tour, but the UK-based DP World will likely face scrutiny too due to its role in the deal.
Blumenthal, commented, “PIF’s role as an arm of the Saudi government and PGA Tour’s sudden and drastic reversal of position concerning LIV Golf raises serious questions.”
“Prior to this agreement, PGA Tour was one of the loudest critics of LIV Golf’s affiliation with Saudi Arabia.”
The documents requested by Blumenthal, the Democratic Party senator for Connecticut, must be provided by 26th June.
Blumenthal, also claims that there are “risks posed by a foreign government entity assuming control over a cherished American institution” and notes that the PIF is using its investment in sport to “further the Saudi government’s strategic objectives”.
