The United States Senate is investigating the PGA Tour’s deal with the Saudi Arabian Public Investment Fund (PIF).
PGA Tour LIV Golf deal prompts U.S. Senate probe into Saudi’s Public Investment Fund
The U.S. Senate, Department of Justice, and other lawsuits could delay or even block the blockbuster deal with the PGA Tour and the PIF.
Jack Milko has been playing golf since he was five years old. He has yet to record a hole-in-one, but he did secure an M.A. in Sports Journalism from St. Bonaventure University.
Last week, PGA Tour Commissioner Jay Monahan and PIF Governor Yasir Al-Ramayyan shocked the world when they announced their intentions on CNBC’s “Squawk on the Street.”
Now the federal government is exploring it, as the Permanent Subcommittee of Investigations (PSI) will launch the probe.
“While few details about the agreement are known, 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 regarding the reasons for and terms behind the announced agreement,” Sen. Richard Blumenthal (D-CT), chair of the PSI, wrote in a letter to Monahan on Jun. 12.
“PGA Tour’s agreement with PIF regarding LIV Golf raises concerns about the Saudi government’s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution. PIF has announced that it intends to use investments in sports to further the Saudi government’s strategic objectives.”
The PSI is the oldest subcommittee of the United States Senate Committee on Homeland Security and Governmental Affairs (HSGAC)
Part of the HSGAC’s role is to “study the intergovernmental relationships between the U.S. and states and municipalities,” per the committee’s website.
Blumenthal also asked the PGA Tour to provide all communication with the PIF and any other records and documentation related to this deal. His letter indicates that the tour must do so by Jun. 26, the Monday after the Travelers Championship, the only PGA Tour event to occur in Connecticut annually.
Since the PIF has close ties with the Saudi Arabian government, politicians from both sides of the aisle raised concerns about the deal.
With the federal government now involved, the pending agreement between the PGA Tour and PIF may take months or even years to finalize.
The Senate—or even the Department of Justice—may rule to block this deal altogether, something Brandel Chamblee of the Golf Channel noted last week.
Many unknowns remain, such as schedule structure, the future of LIV Golf, and how much money the PIF will spend on the new entity.
The PIF, which has more than $720 billion in assets, spent almost $2 billion on LIV Golf but did receive much return on its investment.
Yet, this deal has the attention of everyone: from golf fans to the golfers themselves and to politicians both in the United States and abroad.
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