(Reuters): US Senate panel examines PGA Tour-LIV Golf tie-up, Saudi involvement
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Jul 11 '23, 08:50
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Reuters
18 minutes ago
US Senate panel examines PGA Tour-LIV Golf tie-up, Saudi involvement
By Diane Bartz and Frank Pingue
WASHINGTON (Reuters) -Two PGA Tour officials went before a Senate panel on Tuesday to defend the U.S.-based golf organization's decision to end a rivalry with the Saudi-backed LIV Golf circuit and form a unified commercial entity.
PGA Tour Chief Operating Officer Ron Price and board member Jimmy Dunne are to testify before the Senate Permanent Subcommittee on Investigations, said Senator Richard Blumenthal, the panel's chair, and Ron Johnson, its top Republican.
"Today’s hearing is about much more than the game of golf," Blumenthal said in opening remarks. "It is about how a brutal, repressive regime can buy influence – indeed even take over – a cherished American institution simply to cleanse its public image.
"A regime that has killed journalists, jailed and tortured dissidents, fostered the war in Yemen, and supported other terrorist activities," said the senator, who spoke of a feeling of "betrayal."
The LIV Golf series is bankrolled by the Saudi Arabia Public Investment Fund (PIF). Critics have accused it of being a vehicle for the country to improve its reputation, or "sports-washing," as it faces criticism of its human rights record, including the 2018 murder of Washington Post journalist Jamal Khashoggi, as well as its record on women's rights and gay rights.
The PGA Tour's agreement with Saudi-backed LIV has raised concerns in Washington from lawmakers who are mistrustful of the kingdom and critical of its human rights record. They are vowing to take a deep look into the deal.
Price said in an opinion piece published before the hearing that the agreement between the PGA Tour and LIV was not a merger, and that the PIF was a "non-controlling, minority investor." He did not say what percentage of the PGA Tour would be owned by the PIF.
Pressed Tuesday on the amount of Saudi financial involvement, the PGA Tour's Price said: "There's been discussions. It would be a significant amount. North of $1 billion."
Saudi Arabia's PIF governor, Yasir Al-Rumayyan, will be the chairman of the new entity, called NewCo in the framework, while PGA Tour Commissioner Jay Monahan will serve as CEO.
Price said the PGA Tour would have a controlling interest in the board.
Blumenthal has asked the PGA and LIV for communications and records on their planned deal, citing concerns about the Saudi government's role in the deal and risks posed by a foreign government entity assuming control over the sport.
(Reporting by Diane Bartz in Washington and Frank Pingue in Toronto; Editing by Matthew Lewis and Jonathan Oatis)
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