- The Washington Times - Tuesday, July 11, 2023

Members of a Senate subcommittee pressed PGA Tour executives at a hearing Tuesday over the golf organization’s framework agreement with LIV Golf, with lawmakers questioning the tour’s unexpected decision to merge with the Saudi-funded league.

Sen. Richard Blumenthal, the Connecticut Democrat who chairs the Senate Permanent Subcommittee on Investigations, said the hearing was held to hear an explanation for the PGA Tour’s “sudden reversal” in working with LIV Golf. In late May, the U.S.-based PGA Tour and LIV Golf, rivals that had been locked into a legal fight for control over the sport, announced a surprise tentative alliance that calls for a dramatic transformation of professional golf.

Speaking in front of the committee, PGA Tour COO Ron Price and policy board independent director Jimmy Dunne said that no deal has been finalized with LIV Golf — but made clear they viewed the proposed agreement as “essential” for the tour’s survival. 

Price said that the Saudi wealth fund was set to invest more than $1 billion into a new for-profit subsidiary that the PGA Tour would manage. 

“Instead of losing control of the PGA Tour, an American institution and tradition, we pursued a peace that would not only end the divisive litigation battles, but would also maintain the PGA Tour’s structure, mission, and longstanding support for charity,” Price said in his opening remarks. 

But throughout Tuesday’s hearing, the executive’s defense drew skepticism from Mr. Blumenthal and other Democrats.

Mr. Blumenthal asked if the tour explored other avenues of investment, which Price said wouldn’t have stopped LIV Golf from poaching golfers to join its upstart league. Sen. Tom Carper, a Delaware Democrat, said he wanted to know if the proposed framework becomes finalized, would it allow players to speak freely about the “human rights record of Saudi Arabia.”  

The PGA Tour freely supports human rights,” said Price, who said no players would be penalized for speaking out.

Critics of the PGA Tour’s agreement with LIV Golf have cited the Saudi government’s connections to 9/11, as well as the killing of journalist Jamal Khashoggi. For Tuesday’s hearing, family members of those who lost loved ones on 9/11 sat in the audience behind tour officials. Mr. Blumenthal accused the Saudi wealth fund of “sportswashing,” a term used to describe investing in fields of play to improve a country’s public image.

“(Tuesday’s) hearing is about much more than the game of golf,” Mr. Blumenthal said. “It is about how a brutal repressive regime can buy influence — indeed even take over — a cherished American institution to cleanse its public image.”

Republican senators, though, were more receptive to the proposed merger.

Sen. Ron Johnson, Wisconsin Republican, said he understood the concerns over sportswashing, but he said he held reservations over Congress getting involved in a private business deal that has yet to be completed.

Sen. Rand Paul, Kentucky Republican, said the committee has “no grounds” questioning the PGA Tour, suggesting there were other avenues Congress could take to Saudi Arabia to task. 

Mr. Johnson also said the Saudis’ involvement in golf could ultimately lead to improved human rights in the kingdom.

“If the kingdom’s involvement in golf and other sports helps it to modernize or offer rights to women, wouldn’t that be a good thing?” he said. 

As part of the hearing, the subcommittee released a trove of documents obtained from the PGA Tour and LIV Golf that revealed early details of the proposal, as well as how the deal came together. 

In December 2022, British businessman Roger Devlin first sent an email to Dunne to let him know that there was a “common desire” on LIV’s end to reach a solution. Though the overture was initially rejected, Dunne helped organize a sitdown with officials in April by reaching out to Saudi Arabia’s Public Investment Fund (PIF) governor Yasir Al-Rumayyan.

According to the documents, LIV Golf officials presented the PGA Tour in April with a presentation of a slide show titled “The Best of Both Worlds” that called for the creation of LIV-style teams events in Saudi Arabia and Dubai, two PIF-sponsored PGA Tour events (including one in Saudi Arabia) and, most notably, the inclusion of superstars Tiger Woods and Rory McIlroy to own their own LIV teams and play in at least 10 events.

Woods and McIlroy have been among the tour’s staunchest critics of LIV Golf, with Woods reportedly turning down $700 million to join the league. Price said that the proposals were suggestions that haven’t been finalized and may not be included in the final deal. 

The documents also revealed that the PGA Tour and LIV Golf discussed ousting chief executive Greg Norman, who was invited to testify to members of Congress but declined because of a scheduling conflict. Asked about Norman’s potential removal, Price said the parties would “no longer have a requirement for that type of position.” 

Near the end of the hearing, Mr. Blumenthal invited officials who didn’t testify, such as PGA Commissioner Jay Monahan and governor Al-Rumayyan, to come to Capitol Hill for another meeting. 

The invitations signified Congress’ interest in continuing to monitor the PGA’s deal with LIV — which has also prompted an investigation from the Justice Department for antitrust violations. 

“We need to learn more,” Mr. Blumenthal said. 

• Matthew Paras can be reached at mparas@washingtontimes.com.

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