As the 123rd U.S. Open got underway, the Department of Justice has announced an official investigation into the PIF merger with the PGA Tour.
On the morning of the first round at the U.S. Open, the Department of Justice (DOJ) announced that it will officially investigate the PGA Tour’s deal with the Saudi Arabian Public Investment Fund (PIF).
The DOJ informed the PGA Tour that it will review its planned agreement for antitrust concerns, according to Wall Street Journal report.
This announcement comes just two days after Sen. Elizabeth Warren and Sen. Ron Wyden wrote a letter to the DOJ, citing antitrust concerns and Saudi Arabia’s history of human rights abuses.
A PGA Tour official said that this blockbuster agreement, announced on Jun. 6, may not be finalized for over a year, per the Wall Street Journal report.
Considering the DOJ is now getting involved, that process may take even longer.
The Jun. 6 announcement provided scarce details about the structure of the PGA Tour and PIF’s newly formed entity. The initial press release included the broadest of terms without specifics.
Many questions about the schedule and purses remain, and players have been frustrated about the PGA Tour’s lack of transparency in their negotiations with PIF.
Politicians have expressed their dismay too and are investigating this agreement, in addition to the DOJ’s probe.
Sen. Richard Blumenthal (D-CT) penned a letter to PGA Tour Commissioner Jay Monahan on Jun. 12 indicating that the Senate will investigate this agreement too. As a part of the probe, Blumenthal ordered Monahan to provide all records and communications with PIF to the Senate Foreign Relations Committee by Jun. 26, the Monday after the Travelers Championship in Connecticut.
