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The PGA Tour is seeking to reassure players caught off guard by its deal with Saudi Arabia’s sovereign wealth fund, as it faces growing backlash from US lawmakers over an agreement to reshape world golf.
A group of players gathered for the Travelers’ Championship in Connecticut this week and met up with the PGA Tour leaders on Tuesday at TPC River Highlands private golf course.
Two of the tour’s top executives, Ron Price and Tyler Dennis, briefed the golfers on some details of the partnership announced earlier this month between the PGA Tour and the Saudi Public Investment Fund, two people familiar with the matter said.
That deal ended a bitter dispute and long-running legal battle between the two parties over LIV Golf, the Saudi-backed rival. However, it came as a shock to most in the sport, especially the players who initially sided with the US Tour while resisting the approach of joining the PIF-funded competitor.
Details of the agreement seen by the Financial Times indicate that “the PGA Tour will at all times maintain a controlling voting interest in [the new joint commercial entity]The PGA Tour’s parent organization will also retain its “existing level of regulatory oversight over golf”.
The existence of a potential deal was kept closely guarded, and as the news spread online, professional golfers expressed their frustration with the Tour on social media.
Human rights groups and families of the 9/11 terrorist attack have also criticized the link, while in Washington it has led to backlash and scrutiny. Richard Blumenthal, Democrat of Connecticut, and Ron Johnson, Republican of Wisconsin, held hearings before the Senate Permanent Subcommittee on Investigations.
The two have invited Tour Commissioner Jay Monahan, Public Investment Fund Governor Yasir Al-Rumayyan, and Lviv CEO Greg Norman to testify on Capitol Hill next month.
“I think the American people deserve a clear look at the facts here,” Blumenthal told a US news program. Face the nation Sunday. What the Saudis are doing here is not controlling one team, or signing one player. They actually take charge of the entire sport.”
Ron Wyden, chairman of the Senate Finance Committee, has opened A separate investigation would look into the non-profit’s favorable tax treatment of the PGA Tour, while Democratic lawmakers Maxine Waters and Sherrod Brown as called To refer the deal to the Committee on Foreign Investment in the United States, the body responsible for evaluating foreign investments for any national security issues.
Since the deal was announced, there has been confusion about its exact nature due to a lack of clarity. The agreement between the PIF and the PGA Tour was initially described as a “framework” that would culminate in a final deal later this year, including how much money the Saudi fund will contribute to the new umbrella organization.
A person familiar with the process said attorneys from both sides are racing to complete more permanent terms for the new, unnamed joint entity. “There was a misunderstanding about what the agreement was,” the person said, adding that a formal deal could take “weeks.”
Days after the deal was announced, Monahan suffered an undisclosed “medical condition,” and turned over day-to-day operations to Price and Dennis, adding to the sense of uncertainty surrounding the deal.
But despite the increased scrutiny — the PGA was already cooperating with a DOJ investigation into potential antitrust concerns launched last year — the American Golf Tour still believes a deal with PIF will be finalized. Both parties moved to dismiss litigation stemming from their dispute over the future of golf.
“We are confident that once all stakeholders learn more about how the PGA Tour will lead this new project, they will understand how it will benefit our players, fans, and our sport while protecting the American golf establishment,” the tour said in a recent statement. week.
