Move FM Global News

WASHINGTON D.C.: The Wall Street Journal reported this week that the US Justice Department will review the planned merger of the PGA Tour and Saudi-backed LIV Golf, to determine if it violates US antitrust law.

Last week, bitter rivals, the PGA Tour, DP World Tour and rival Saudi-backed LIV circuit announced an agreement to merge and form one unified commercial entity.

The Justice Department opened a probe into the PGA Tour’s efforts to keep its players from defecting to LIV, which has offered large paychecks to attract leading golfers.

The agreement is not a merger, but rather an investment, the US-based PGA Tour said in response.

“We are confident that once all stakeholders learn more about how the PGA Tour will lead this new venture, they will understand how it benefits our players, fans, and sport, while protecting the American institution of golf,” it said in a statement.

The LIV Golf series is funded by the Public Investment Fund of Saudi Arabia, and is accused of being used to improve the reputation of the country, which faces criticism of its human rights record, through sports, a process known as “sportswashing.”

Saudi Arabia is alleged to be involved in many human rights violations, including the murder of Washington Post journalist Jamal Khashoggi in 2018.

US Senators Elizabeth Warren and Ron Wyden recently asked the Justice Department to open an antitrust investigation into the possible merger.

Meanwhile, Wyden also said that he would look at the transaction and work to revoke the Saudi Public Investment Fund’s special tax treatment.

Professional golfers have said they were surprised by the announcement of the planned merger.