US senators question PGA Tour officials on proposed merger with LIV Golf

Senate panel makes merger 'even more difficult' to complete, top official says

Ron Price and Jimmy Dunne of the PGA face a Senate subcommittee hearing into the proposed merger with Saudi Arabia's LIV on July 11. Getty

US senators questioned two top PGA officials on Tuesday over the golf body's proposed merger with Saudi Arabia's LIV.

The deal has raised questions over the influence of Saudi money in American sports and led the Justice Department to look into whether it stifles competition.

The hearing by the subcommittee on investigations came as the panel released documents connected to the deal, including proposals to completely transform professional golf.

Democratic Senator Richard Blumenthal, the subcommittee's chairman, urged Ron Price, the PGA Tour's chief operating officer, and Jimmy Dunne, a PGA Tour board member, to reject the deal with Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF).

“There is something that stinks about this path that you're on right now. Because it is a surrender. And it's all about money,” Mr Blumenthal said.

But Mr Price told senators the agreement framework contains “important safeguards” that ensure the PGA will control its operations and its board, and that it will be the governing body for “competitive jobs in connection with any combined golf operations".

He said the Saudis have agreed to invest more than $1 billion in the new company, which would comprise all present and future commercial operations and assets held by the PGA Tour, DP World Tour and PIF, including LIV Golf.

Mr Dunne, meanwhile, testified to the packed hearing room that his “fear” is that the PGA could lose its golf stronghold without a deal, calling LIV's operations a “constant, everyday” disruption to the tour.

Mr Price said a deal with Saudi Arabia's LIV would permit the American tour to continue its leading position.

“We're committed to move to a framework agreement, because we believe that will allow us to continue our leadership in professional golf and our tournaments to be operated in accordance with our mission,” he said.

“These proceedings make that even more difficult.”

The announcement of the merger rocked the golfing world last month.

Since LIV Golf was founded in 2021, a bitter rivalry emerged with PGA, with the Saudi-backed league drawing US players and offering bumper salaries.

LIV is “already putting billions of dollars into golf … they have an unlimited horizon and an unlimited amount of money," Mr Dunne said.

"So it isn't like the product is better. It's just that there's a lot more money that will make people move."

The rivalry saw each tour file lawsuits against the other. These would be dropped if the merger goes through.

“Instead of losing control of the PGA tour, we pursued a peace that will not only end the divisive litigation battles, but will also maintain the PGA Tour structure, mission and long-standing support for charity,” Mr Dunne told senators.

Before Tuesday's hearing, the subcommittee released documents showing negotiators of the proposed deal discussed removing LIV chief executive Greg Norman and giving Tiger Woods and Rory McIlroy their own LIV teams.

The US Justice Department is looking into the merger to see if it breaches anti-trust laws and critics have said the proposed deal amounts to Saudi “sportswashing”, where Riyadh seeks to improve its public image.

Subcommittee ranking member Ron Johnson said that, financially, the agreement framework seemed like a “win-win” for the PGA and LIV.

“Sounds like the Saudis got a seat at the table in terms of golf, and PGA retained control of the game and competition,” Mr Johnson said.

Members of 9/11 Families United, a coalition of survivors and victim family members from the September 11, 2001 attacks, were seated towards the front of the hearing, wearing bright red hats.

The coalition said it was “shocked and deeply offended” in a statement released when the deal framework was announced.

Mr Dunne, in an emotional opening statement, addressed those families and discussed his “66 colleagues that died that day.”

“If any person has the remotest connection to an attack on our country, and the murder of my friends, I am the last guy that would be sitting at a table,” he said.

“In Saudi Arabia, I think there are 18 million young men and women that are under the age of 32.

"And I think it would be better if they didn't think every American hated them … and I think golf would be a force [for that],” he later added.

Before the hearing, Mr Price wrote an opinion piece in The Athletic defending of the deal framework, although he admitted flaws in its public presentation.

“Due to the confidential nature of negotiations surrounding the framework agreement, much of the initial reaction has been negative, coloured by misinformation or misunderstanding. That’s something we take full ownership of and deeply regret,” Mr Price wrote.

Mr Blumenthal and Mr Johnson also requested testimony from Norman and PIF Governor Yasir Al Rumayyan.