DOJ investigates PGA Tour and LIV Golf merger: Report
The Justice Department to Review Planned Merger Between PGA Tour and LIV Golf
The Justice Department has announced that it will be conducting a review of the highly anticipated merger between the PGA Tour and the Saudi-backed LIV Golf. This investigation comes in response to concerns regarding potential antitrust violations. The news of the review comes just over a week after the two golf leagues revealed their plans to merge.
DOJ Investigation Raises Questions
The PGA Tour is already under investigation by the Justice Department for alleged anti-competitive practices related to the suspension of golfers who joined LIV Golf. Now, with the new merger on the horizon, the DOJ is reportedly turning its attention to this development as well. Typically, sports mergers are handled by the Federal Trade Commission, but it seems that the Justice Department is taking the lead in this particular case.
The Merger Agreement
The agreement, which was announced last week, involves the PGA Tour, DP World Tour, and Saudi Arabia’s Public Investment Fund coming together to create a new for-profit entity. This entity will combine the commercial businesses of all three parties involved. It is important to note that PGA Tour Inc., a tax-exempt organization, will continue to exist and oversee events related to the assets contributed by the PGA Tour.
In a statement, PGA Tour Commissioner Jay Monahan expressed his excitement about the merger, stating that it will bring numerous benefits to players, partners, and fans of the sport. He also praised the vision and collaborative approach of PIF Governor Yasir Al-Rumayyan, emphasizing that this merger will not only resolve existing issues but also elevate the game of golf to new heights.
LIV Golf, backed by Saudi Arabia, has made significant investments in various sports. The PGA Tour reportedly decided to merge with LIV Golf due to the latter’s seemingly unlimited financial resources. However, a PGA spokesperson dismissed this explanation as an oversimplification.
The Justice Department has declined to comment on the investigation at this time.
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