U.S. Justice Department Is Set To Investigate PGA Tour - LIV Golf Merger, Could Slow Things Considerably
It was only a matter of time before the word 'investigation' would be tied to the merger between the PGA Tour and the Saudi Arabia Public Investment Fund (PIF), and in turn, LIV Golf. Exactly eight days after plans for the merger were announced, the United States Department Of Justice appears to be preparing to get into the mud.
The Wall Street Journal has reported that the DOJ is set to review the Tour's plans to merge with the PIF:
"The Justice Department has notified the PGA Tour that it will review the Tour’s planned merger with LIV Golf’s Saudi backers for antitrust concerns, people familiar with the matter said, initiating a regulatory obstacle to the stunning deal that the warring golf bodies hope will stabilize the divided sport."
The Justice Department is no stranger to looking into the PGA Tour's operations. The DOJ was already investigating the Tour on the basis of potential anticompetitive behavior when the Tour and LIV were in battle trying to distance themselves from one another.
Attorney General Merrick Garland and the Justice Department will look into the proposed merger between the PGA Tour and LIV Golf. (Getty Images)
Justice Department Could Drag Out The Proposed Plans Between The PGA Tour And LIV Golf
Since the announcement of a planned merger, most have wondered how a merger wouldn't fall under the categories of anticompetitiveness and monopolization. You had one non-profit organization (PGA Tour) changing its operations and drastically increasing tournament purses competing against LIV Golf, which is backed by the Saudi PIF valued at $620 billion paying many players well-north of $100 million to be a part of the league.
Now, those two sides have suddenly and unexpectedly decided to join forces. There are many questions surrounding the proposed merger and the future of professional golf, and one of the most pressing questions is how would a merger not be anticompetitive?
It's worth remembering that absolutely nothing between the PGA Tour, the Saudis, and LIV has been set in stone. All we know at this moment in time is that all sides want to join forces, which would result in more funding for the Tour and the head seat at the table of professional golf for Saudi Arabia.
All we have is a proposal on the table - a sport-altering one - but just a proposal. And with the DOJ set to investigate, we can count on the proposal being dragged out and a coming together of all parties likely coming later rather than sooner.
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