The agreement between the Saudi Public Investment Fund, the primary funder of LIV Golf, and the PGA Tour shocked the golf world when it was announced last month and led to probes by the Permanent Subcommittee on Investigations, which summoned tour officials to the Capitol to testify under oath, and the Justice Department, which is looking into potential antitrust violations.
The PGA Tour and the Saudis agreed on June 6 to drop all lawsuits against each other and combine their commercial interests into a new for-profit company while maintaining the tour's nonprofit status. Asked by Blumenthal how much money the Saudis have committed to the new venture, Ron Price, the PGA Tour's chief operating officer, testified the amount was “north of $1 billion.”
“There is something that stinks about this path that you're on right now because it is a surrender, and it is all about the money, and that is the reason for the backlash that you're seeing, Mr. Price,” Blumenthal said. “The equity ownership interest that the Saudis will have ... gives them financial dominance. They control the purse strings.”
Before the hearing, the subcommittee released documents detailing the secretive and hasty negotiations that led to last month's framework agreement. Dunne conceded that the tour botched the announcement of the deal, leading many to mistakenly conclude that the tour and LIV Golf had completed a merger.