Blumenthal starts probe into PGA-LIV merger, claiming ‘concerns’ over Saudi influence

Sen. Richard Blumenthal is demanding that the PGA Tour produce documentation detailing how it reached the merger agreement with LIV Golf, a rival circuit backed by the Saudi Arabian government.

The Connecticut Democrat, who is chairman of the U.S. Senate Permanent Subcommittee on Investigations, sent a letter to PGA Jay Monahan stating his organization”™s decision to merge operations with LIV seemed to contradict its previous hostility to the Saudi-financed golf tour, claiming it raised “serious questions regarding the reasons for and terms behind the announced agreement.” Citing LIV”™s ownership as the Saudi Arabian Public Investment Fund (PIF), Blumenthal stated the fund “makes investment decisions under ”˜the chairmanship and guidance”™ of Crown Prince Mohammad bin Salman, the effective Saudi leader.”

“PGA Tour”™s agreement with PIF regarding LIV Golf raises concerns about the Saudi government”™s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution,” Blumenthal wrote. “PIF has announced that it intends to use investments in sports to further the Saudi government”™s strategic objectives.
It established LIV Golf Investments in 2021 to serve this goal. Critics have cast such Saudi investments in sports as a means of ”˜sportswashing”™ ”” an attempt to soften the country”™s image around the world ”” given Saudi Arabia”™s deeply disturbing human rights record at home and abroad.”

Blumenthal added that PGA Tour intended to preserve its tax-exempt status after the merger is completed, complaining that “raises additional questions about the terms of the agreement and whether a foreign government may indirectly benefit from provisions in U.S. tax laws meant to promote not-for-profit business associations.”

The senator gave PGA Tour until June 26 to comply with his request for the documents. PGA Tour and LIV did not issue an immediate public comment regarding Blumenthal”™s letter.