PGA TOUR emblem is seen through the second spherical of the Farmers Insurance coverage Open at Torrey Pines South on January 29, 2021 in San Diego, California.
Ben Jared | Pga Tour | Getty Photographs
The Division of Justice’s antitrust division has knowledgeable the PGA Tour it’ll assessment the group’s proposed merger with Saudi-funded LIV Golf, a supply advised NBC Information on Thursday.
The Justice Division and LIV Golf declined to remark.
In a press release to CNBC, the PGA Tour stated, “We’re assured that when all stakeholders be taught extra about how the PGA TOUR will lead this new enterprise, they are going to perceive the way it advantages our gamers, followers, and sport whereas defending the American establishment of golf.”
A supply with data of the state of affairs stated that any curiosity by the DOJ can be an extension of the preexisting investigation, and wouldn’t be uncommon for U.S. antitrust authorities to assessment a transaction of this profile. The supply added {that a} assessment doesn’t recommend the transaction violates antitrust legal guidelines.
The DOJ was already conducting an investigation into skilled golf, in mild of the litigation with LIV.
The announcement of the deal final week instantly sparked antitrust considerations.
This week, Democratic Sens. Elizabeth Warren of Massachusetts and Ron Wyden of Oregon urged the DOJ to open a probe into the settlement. Sen. Richard Blumenthal, D-Conn., additionally opened a probe into the deal. Wyden launched his personal investigation Thursday.
The PGA Tour’s once-adversarial relationship with LIV was already underneath scrutiny by federal prosecutors who final 12 months began investigating whether or not the PGA Tour had engaged in anticompetitive conduct.
LIV, which is backed by the so-called Public Funding Fund managed by Saudi Arabia’s Crown Prince Mohammed bin Salman, divided the professional golf world when it emerged as a rival to the PGA Tour.
The upstart league’s hyperlinks to the dominion, with its sordid document on human rights, triggered a swarm of controversy. However with the assistance of a reported $2 billion funding from the crown prince’s fund, LIV dangled large prizes and perks and managed to lure high-profile golfers to play in its tournaments.
Former President Donald Trump hosted a LIV match at his New Jersey golf membership final summer time, stoking outrage from the dominion’s critics — together with households and survivors of the 9/11 terrorist assaults.
The PGA Tour and LIV Golf had locked horns out and in of court docket, and PGA Tour Commissioner Jay Monahan has brazenly criticized the rival league, making the announcement of their proposed merger all of the extra shocking. The announcement final week famous the tie-up would immediate a mutual finish to all pending litigation.
If the merger goes by, the 2 entities will mix their companies and rights into a brand new for-profit firm. The PGA Tour coverage board must approve the settlement, Monahan advised gamers in a memo.
The PGA Tour revealed Tuesday that Monahan is at the moment recovering from an unspecified medical matter and is taking a depart of absence.