LOS ANGELES — The proposed deal between the PGA Tour and the Saudi backers of LIV Golf is being reviewed by the Justice Department, according to a story in the Wall Street Journal.
The investigation throws into question the planned joint venture put together by a team headed by PGA Tour commissioner Jay Monahan and Yasir Al-Rumayyan, the governor of Saudi Arabia’ Public Investment Fund that finances LIV Golf. The two sides, along with the DP World Tour, announced last week they were collaborating on a yet-to-be-named organization “that will benefit golf’s players, commercial and charitable partners and fans,” Monahan said.
The groundbreaking deal, consummated after seven weeks of secret meetings, was made with the hopes of ending golf’s Civil War and stabilizing a sport that has been in tumult since LIV Golf announced its intentions more than a year ago.
The Justice Department already had been investigating the PGA Tour for anticompetitive behavior. One Tour executive told employees the outcome of the union likely will not be known for at least a year, the Wall Street Journal wrote. The DOJ’s involvement could lengthen that timeline. The deal also could completely fall apart if the two sides do not agree on specific terms.
With the major details still to be worked out, players from both tours who are competing in the U.S. Open this week at Los Angeles Country Club say they have received little information.
“I feel like I really don’t have enough information to talk about it much because we’re still learning,” said PGA Tour member Rickie Fowler.
“I really know as much as you guys know, to be honest,” LIV’s Cameron Smith said. “I haven’t been told much at all. I’m just taking it as it goes along.”
Jon Rahm said Tuesday many fellow PGA Tour players feel “betrayed” and want to “have faith” in management but it’s “clear that’s not the consensus.”
PGA Tour commissioner Jay Monahan is recovering from a medical situation, according to a joint statement released late Tuesday by the PGA and the PGA Tour Policy Board, but the Tour reports that this would not disrupt the Tour’s daily business. Its operations are being run by chief operating officer, Ron Price, and executive vice president, Tyler Dennis, in Monahan’s absence.
LIV Golf, and its CEO and commissioner Greg Norman, convinced several players to defect from the PGA Tour and join the rogue league. LIV offered substantial contracts, some in the nine figures, while luring such popular stars as Phil Mickelson, Brooks Koepka, Bryson DeChambeau and Smith, and $25 million purses.
The PGA Tour was forced to react and did so by creating “designated” events that included $20 million purses and pumping money into its Player Impact Program.
“After two years of disruption and distraction, this is a historic day for the game we all know and love,” Monahan said in a statement the day the deal was announced.
“This transformational partnership recognizes the immeasurable strength of the PGA Tour’s history, legacy and pro-competitive model and combines with it the DP World Tour and LIV – including the team golf concept – to create an organization that will benefit golf’s players, commercial and charitable partners and fans.”