Senate Finance Committee Chairman Ron Wyden (D-Ore.) launched a “wide-ranging” probe Thursday into the merger between golf rivals PGA Tour and LIV Golf.
Wyden sent a letter to PGA Tour leadership asking for information on the deal between it and LIV Golf, an organization that was backed by Saudi Arabia’s Public Investment Fund (PIF). He also announced his plan to introduce legislation to remove PIF’s special tax exemption that applies to specific forms of investment by foreign governments and funds.
“The PGA Tour’s involvement with PIF raises significant questions about whether organizations that tie themselves to an authoritarian regime that has continually undermined the rule of law should continue to enjoy tax-exempt status in the United States,” Wyden wrote in a letter to PGA Tour leadership.
“In addition, I believe it is critical that lawmakers understand what risks this arrangement may pose to America’s national interests, particularly with respect to foreign investment in U.S. real estate, such as locations neighboring military facilities or sensitive manufacturing centers, and how you plan to mitigate those risks,” he continued.
Wyden also wrote that there was “no good reason” to help the Saudi-backed fund with a taxpayer subsidy.
The PGA Tour announced last week that it agreed to merge with its Saudi-backed competitor to create one larger golf organization. The agreement said it will combine the PGA Tour’s and LIV Golf’s commercial businesses into one for-profit entity that has yet to be named, and that it will see a capital investment by the PIF.
Lawmakers have raised national concerns about the merger, with Wyden previously calling it a “shameless cash grab.” Sen. Richard Blumenthal (D-Conn.) also sent a letter to PGA Tour Commissioner Jay Monahan earlier this week, asking for more details on its “drastic reversal” on LIV Golf, which it had previously greeted with legal challenges.
Monahan defended his organization’s decision to merge, accusing lawmakers of not helping fend off the challenge from LIV Golf in a letter earlier this month.
Wyden is asking for the PGA Tour to respond to his request no later than June 23.