LIV Golf and PGA Tour merger faces investigation from US Senator Richard Blumenthal

United States Senator Richard Blumenthal has opened an investigation into the shock merger between the PGA Tour and LIV Golf brokered by the Saudi Arabian Public Investment Fund.

In letters sent to LIV Golf commissioner Greg Norman and PGA Tour commissioner Jay Monahan, Blumenthal (D-CT) announced a review of the planned agreement between the PIF and the PGA and demanded records regarding the merger.

Blumenthal, the chair of the Senate Permanent Subcommittee on Investigations, said that the deal, ‘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’.

The letters sent requests the documents by June 26, the Monday after Blumenthal’s home state of Connecticut wraps up hosting one of the PGA Tour’s ‘designated events’ – the Travelers Championship at TPC River Highlands.

Last week, LIV and the tour stunned the golf world by agreeing to merge the PGA Tour and the DP World Tour with the Saudi Golf interests, while also dropping all lawsuits between the parties.

Senator Richard Blumenthal (D-CT) has opened an investigation into the LIV-PGA merger

Letters sent to Jay Monahan (L) and Greg Norman (R) request documents by June 26 

Blumenthal says the deal ‘raises concerns about the Saudi government’s role… assuming control over a cherished American institution’ (above: Yasir Al-Rumayyan)

Yasir Al-Rumayyan, the governor of Saudi Arabia’s sovereign wealth fund, which bankrolls LIV, will join the PGA Tour board of directors and lead a new business venture as its chairman. The PGA Tour itself will remain a tax-exempt entity.

It was a move expected to receive scrutiny from federal regulators and lawmakers, and the launch of a Senate investigation is among the first dominoes to fall.

The agreement announced last week was to combine the golf-related businesses of Saudi’s Public Investment Fund – which includes LIV Golf – with those of the PGA Tour and European Tour. That would be a new for-profit company still to be named.

Among the uncertainties is how LIV Golf goes forward after 2023. Al-Rumayyan, is to be chairman of the new venture, with Monahan as CEO and two PGA Tour board members joining them on an executive committee.

The move has drawn criticism from golf purists and the families of victims of the September 11 attacks – who have been vocal about the Saudis’ involvement in LIV from the beginning.

In the aftermath of the announcement, a number of golfers – including Rory McIlroy – revealed their displeasure with the agreement. 

Blumenthal specifically addressed the fear of Saudi ‘sportswashing’ in his letters

In his letters to Monahan and Norman, Blumenthal wrote about the skepticism critics hold over the Saudis’ intent ‘to use investments in sports to further the Saudi government’s strategic objectives.’

‘Critics have cast such Saudi investments in sports as a means of “sportswashing” – an attempt to soften the country’s image around the world – given Saudi Arabia’s deeply disturbing human rights record at home and abroad,’ the letter said.

Blumenthal asked for a sweeping set of documents – essentially all communications between LIV and the Tour beginning in October 2021 through the present.

Al-Rumayyan said last week that Norman was not apprised of the deal until shortly before it was announced.