(Washington) PGA Tour merger negotiators with Saudi backers of the LIV Tour discussed the firing of emerging Tour general manager Greg Norman and the possibility of offering a LIV team each to Tiger Woods and Rory McIlroy, according to documents obtained by the US Congress.
These proposals have been discussed in the context of discussions that have been taking place quietly during the spring about the possible merger of the two rival professional circuits. Those negotiations culminated with the announcement of a tentative agreement last month between the PGA and Saudi Arabia’s Public Investment Fund (PIF).
This pact allowing the PIF to invest in the PGA Tour shook the world of golf and forced the American Congress as well as the United States Department of Justice to look into it, in order to determine whether whether or not it complied with US competition law. The Permanent Subcommittee on Investigations, which is headed by Senator Richard Blumenthal, has released documents about the discussions that took place ahead of Tuesday’s hearing – in which the architects of the merger and a circuit executive PGA should testify.
This sub-committee has the mandate to determine the extent to which the PIF’s investments in professional golf align with the geopolitical interests of this Middle Eastern country.
“We are here because we are concerned about the purchase, by an absolute monarchy using its wealth, of an American institution,” Senator Blumenthal said.
The Saudis have agreed to invest “more than $1 billion” in a new venture the PGA wants to build, tour operations director Ron Price said during the hearing.
Blumenthal tirelessly questioned Price and Jimmy Dunne, a PGA board member and key player in the Saudi deal, about why the Tour hadn’t tried to find alternative sources of funding in order to compete with the LIV circuit and the PIF, which manages around 600 billion in assets. In response, Price and Dunne indicated that new business deals with other companies would not have prevented the LIV Tour and PIF from continuing their charm campaign with major PGA headliners.
“My main objective here is to quickly move on from this tumultuous time, so that there is only one professional golf circuit, for the benefit of players, fans, sponsors and volunteers,” said said Dunne.
Those opposed to the merger with the PIF pointed to the country’s poor human rights record and the murder of journalist Jamal Khasshogi – an order of Mohammed bin Salman, according to US intelligence, but allegations that the Crown Prince of Saudi Arabia has always denied. The PIF has already invested in several other professional sports, including soccer (Newcastle United, in the English Premier League) and Formula 1.
The documents released on Tuesday also spell out each person’s role in the negotiations on the Saudi side. Among them are Amanda Staveley, a British investor who notably facilitated the acquisition of Newcastle United and is now part of its board of directors, and Roger Devlin, a British businessman. Devlin was the first to approach Dunne to sound out interest in a possible merger with the LIV circuit, the documents show.
A memo from Staveley’s office titled “The Best of Both Worlds” includes the suggestion that Woods and McIlroy be awarded a team each, and suggests that the legendary golfers should play in 10 LIV Tour tournaments each year. Nothing in the documents, however, indicates whether Woods and McIlroy, who have always remained loyal to the PGA, were informed about this.
Woods has only played two tournaments this year and is recovering from ankle surgery. The injury stems from a traffic accident that occurred in Los Angeles in early 2021, which the American says severely limits his ability to compete in potential golf tournaments.
