PGA Tour merger with LIV Golf triggers confusion about sponsorships, antitrust

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The PGA Tour's announced merger with rival LIV Golf leaves questions surrounding the future of sponsorships and regulatory review.

The new entities need to show that the merger is to the benefit of consumers, especially on a global basis, by bringing the best talent together under one umbrella and expanding the reach of the game, said Timothy Derdenger, an assistant professor of marketing and strategy at Carnegie Mellon University's Tepper School of Business.

On Tuesday the group 9/11 Families United slammed the merger, especially after Monahan, the PGA Tour commissioner, raised this publicly last summer in an interview. "I would ask any player who has left or any player who would consider leaving, 'Have you ever had to apologize for being a member of the PGA tour?'" Monahan said during an interview with CBS Sports last year.

Marketers, advertisers and sponsors have pulled out from other partnerships when controversies have raised concerns. Soon after joining LIV, Mickelson made disparaging comments about the tour and showed his support for the Saudis. The top golfer lost his endorsements from the likes of KPMG and others, some of which were more than a decade old.

 

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