LOS ANGELES (AP) — Commissioner Jay Monahan has informed congressional members the PGA Tour was “left on our own” to fend off Saudi Arabia’s bid to take over the game with LIV Golf due to the United States’ geopolitical alliance with the dominion.
Monahan despatched the letter to varied lawmakers on June 9, three days after the PGA Tour’s gorgeous announcement of an settlement with Saudi Arabia’s sovereign wealth fund and the European tour to pool business enterprise and rights in a brand new firm.
The settlement, whereas nonetheless not finalized, would finish all litigation between the PGA Tour and the Public Investment Fund. In the final 12 months, LIV Golf had lured away a few of golf’s greatest stars with signing bonuses of $100 million or extra, prompting the PGA Tour to reply by pouring thousands and thousands into its personal match purses.
“During this intense battle, we met with several Members of Congress and policy experts to discuss the PIF’s attempt to take over the game of golf in the United States, and suggested ways that Congress could support us in these efforts,” Monahan wrote. “While we’re grateful for the written declarations of help we acquired from sure members, we had been largely left on our personal to fend off the assaults, ostensibly as a result of United States’ complicated geopolitical alliance with the Kingdom of Saudi Arabia.
“This left the very real prospect of another decade of expensive and distracting litigation and the PGA TOUR’s long-term existence under threat.”
Three days after Monahan’s letter — first reported by Politico and obtained by The Associated Press — the chief of a Senate subcommittee demanded information from the PGA Tour and Saudi golf pursuits amid “serious questions” on how the settlement took place.
Sen. Richard Blumenthal, D-Conn., the chairman of the Senate Permanent Subcommittee on Investigations, additionally mentioned he wished to listen to the PGA Tour’s plan to maintain tax-exempt standing.
It was not clear to whom Monahan despatched his letter as a result of that was redacted, although it was believed not each member of Congress acquired it.
“We believe that we did everything we could possibly do to defend what we stand for, including spending tens of millions of dollars to defend ourselves from litigation instigated by LIV Golf – significant funds diverted away from our core mission to benefit our players and generate charity,” Monahan mentioned.
He mentioned the tour secured a federal court docket ruling that PIF was not protected underneath the Foreign Service Sovereignty Act as a result of a choose had mentioned the Saudi wealth fund was doing business enterprise within the U.S. That ruling has been appealed to the ninth U.S. Circuit Court of Appeals in Denver, extending the antitrust lawsuits by means of a minimum of the center of subsequent 12 months.
Monahan mentioned the settlement was not a merger with LIV Golf, a 48-man league that has a group part and performs eight of its 14 tournaments within the United States.
The announcement final week was for PIF, the PGA Tour and European tour to pool their enterprise pursuits – that features PIF-funded LIV Golf. Still unclear is whether or not LIV Golf continues after this 12 months and the way gamers who defected from the PGA Tour might return.
Monahan has referred to the settlement solely as a framework, and even in a hostile participant assembly final week on the Canadian Open, he couldn’t provide many particulars.
In his letter to lawmakers, Monahan mentioned the settlement would enable the PGA Tour to run tournaments as earlier than, with him as commissioner and New York lawyer Ed Herlihy because the chairman of the board.
Monahan could be CEO of the brand new for-profit firm – he described it as a subsidiary of the PGA Tour – with Yasir Al-Rumayyan as the corporate’s chairman. Al-Rumayyan is the governor of Saudi’s wealth fund.
Monahan, Al-Rumayyan, Herlihy and Jimmy Dunne – the PGA Tour board member who helped dealer the deal – would type the manager committee.
“The PGA Tour will at all times hold the majority of the Board seats and be in control of this new entity, regardless of the size of PIF’s investment,” Monahan mentioned, including PIF could be a minority investor.
“At its core, the PIF is investing in the PGA Tour as it has invested in other U.S.-based companies,” he mentioned. “The PGA Tour and its tournaments will continue to operate as they do today, generating significant charitable and economic impact in the communities where they are played.”
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