Ousting Norman, giving Woods and McIlroy LIV teams were discussed with PGA Tour, documents show
- Documents released as part of US Senate investigation shed light on discussions surrounding merger talks between golf’s rival factions
- Talks culminated in a framework agreement announced last month between the tour and Saudi Arabia’s sovereign wealth fund
The negotiators of a business deal between the PGA Tour and the Saudi funders of LIV Golf discussed ousting LIV chief executive Greg Norman and giving Tiger Woods and Rory McIlroy their own LIV teams, according to documents obtained by Congress.
Those were among the many proposals to unify golf’s rival factions that representatives of the PGA Tour and the Saudi government discussed this spring during their hasty negotiations. The talks culminated in a framework agreement announced last month between the tour and Saudi Arabia’s sovereign wealth fund.
Details of those talks were made public ahead of a hearing Tuesday by the Permanent Subcommittee on Investigations, which is looking into the agreement because of the geopolitical implications of Saudi investment in American sports.
“We’re here because we’re concerned about what it means for an authoritarian government to use its wealth to capture an American institution,” said Senator Richard Blumenthal, the subcommittee chairman.
The Saudis have agreed to invest “north of $1 billion” into a new for-profit company the tour intends to create, Ron Price, the PGA Tour’s chief operating officer, testified at the hearing.
Blumenthal repeatedly pressed Price and Jimmy Dunne, a PGA Tour board member and a key negotiator of the Saudi deal, on why the tour did not seek alternative sources of funding to compete with LIV Golf and its backer, Saudi Arabia’s US$600 billion Public Investment Fund.
In response, Price and Dunne said going into business with outside investors would not prevent LIV Golf and the PIF from continuing to compete with the tour and use its vast resources to sign top players.
“My entire concern here is to put this divisive period behind us, and for the sake of players, fans, sponsors and charities, unite the game of golf again,” Dunne said.
The deal to bring Saudi investment into the PGA Tour shocked the golf world and also has invited scrutiny from the Justice Department, which is looking into potential antitrust violations.
“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.”
Critics of the Saudi investment in golf have pointed to the kingdom’s poor human rights record and the killing of journalist Jamal Khashoggi, which US intelligence concluded was likely approved by Saudi Crown Prince Mohammed bin Salman, an allegation the crown prince denies.
The PIF has bought its way into other sports including football through its ownership of English Premier League club Newcastle United, and Formula One racing.
Republicans on the committee were less critical of the tour leaders for negotiating with the Saudis and expressed reservations about Congress getting involved in a private business deal that hasn’t been completed. Johnson suggested that Saudi involvement in sports ultimately could improve human rights in the kingdom.
“If the kingdom’s involvement in golf and other sports helps it to modernise or offer rights to women, wouldn’t that be a good thing?” ranking member Ron Johnson said.
