US Justice Department looking into PGA-LIV deal

The US Justice Department has begun to examine an agreement between the PGA Tour and Saudi Arabian backers of LIV Golf to determine whether it breaches federal antitrust statutes.

The inquiry is in its early stages, and it is not clear yet whether the Justice Department would take any enforcement action, a source said.

The Wall Street Journal first reported the Justice Department's involvement.

“We are confident that once all stakeholders learn more about how the PGA Tour will lead this new venture, they will understand how it benefits our players, fans and sport while protecting the American institution of golf,” the PGA Tour said.

The PGA Tour, the European tour and Saudi Arabia's national wealth fund came together in a partnership that was negotiated so privately over two months that none of the players were aware.

PGA Tour commissioner Jay Monahan had been critical of LIV Golf since the rival circuit began poaching some of golf's biggest names with signing bonuses of $100 million or more, money provided by the Public Investment Fund.

The PGA Tour suspended players who defected to LIV, such as Phil Mickelson, leading to 11 players and eventually LIV to file an antitrust lawsuit against the PGA Tour last August.

The PGA Tour then filed a countersuit, and the case was not expected to go trial until at least 2024.

Part of the agreement is to drop all litigation. One motivation for the PGA Tour joining with the Saudis was the financial drain from legal fees on lawsuits that were nowhere near close to being resolved.

The Justice Department already was looking into antitrust issues since last summer.

Mr Monahan has described the agreement announced June 6 as a “framework” with plenty of details still to be determined.

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