The Saudi-backed LIV Golf Tour faces a new dilemma this week.
LIV Golf may face new battles with U.S. Justice Department amid PR firm filing
A former vendor for the Saudi-backed LIV Golf Tour filed as a foreign agent with the Justice Department, which may force LIV to reveal juicy details.
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.
According to a Wall Street Journal report, a public relations firm named Gitcho Goodwin, now a former client of LIV, filed as a foreign agent with the U.S. Justice Department. It has been speculated that LIV Golf itself or other firms representing the entity might be required to do the same in the future.
As a part of the filing process, the Justice Department asks and probes similar vendors and businesses, meaning LIV Golf’s clients may face further questions, which could expose numerous financial mysteries.
Gitcho Goodwin’s filing, made through the Foreign Agents Registration Act (FARA), is a departure from what LIV has done over the past year.
Congress signed FARA into law in 1938 to promote transparency of foreign agents. At that time, Nazi Germany was becoming a global power. Congress wanted German individuals and entities working in the United States to show their true objectives and denounce Nazi propaganda.
Nonetheless, LIV Golf says they are advocating for golf, not for Saudi Arabian political interests, and therefore does not need to file as a foreign principal or agent.
According to the Congressional Research Service, foreign principals include:
“(1) a government of a foreign country and foreign political party; (2) a person outside of the United States, unless it is established that such person is an individual and a citizen and domiciled within the United States, or is organized under or created by the law of the United States... has its principal place of business within the United States or (3) a partnership, association, corporation, organization, or other combination of persons organized under the law or having its principal place of business in a foreign country.”
FARA requires individuals and organizations representing a foreign principal to file important information such as income, money, spending, oral agreements, and the nature of its business.
The Saudi Arabian Public Investment Fund (PIF) has reportedly poured almost $1 billion into LIV Golf.
Critics have argued against LIV Golf’s beneficiaries, citing sportswashing—or when a government spends money on a sport to overshadow corruption, discrimination, and other injustices.
Gitcho Goodwin made news this week for other reasons too. Per Politico, presidential candidate Vivek Ramaswamy fired the firm due to their working relationship with LIV Golf.
Consequently, this week’s news can potentially make things difficult for LIV going forward.
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