Golf News: US Government to Investigate LIV-PGA Merger over Sportswashing Accusations.

The leader of a US Senate subcommittee is demanding the PGA Tour and Saudi Arabia’s LIV Golf present records about the negotiations that led to their planned merger.

Richard Blumenthal, a Democrat from Connecticut, sent letters on Monday to PGA Tour commissioner Jay Monahan and LIV CEO Greg Norman.

“While few details about the agreement are known, PIF’s role as an arm of the Saudi government and PGA Tour’s sudden and drastic reversal of position concerning LIV Golf raise serious questions regarding the reasons for and terms behind the announced agreement,” Blumenthal wrote in a letter to Monahan.

The Saudi Public Investment Fund (PIF) will pour huge sums – confirmed by its governor, Yasir al-Rumuyyan, as running into billions – into a newly formed entity to run top-tier golf. The PIF has assets of more than $700bn and will lead efforts to move Saudi Arabia on from its reliance on its oil assets.

Blumenthal, who is chairman of the Senate Permanent Subcommittee on Investigations, said he also wanted to hear the tour’s plans to retain its tax-exempt status.

Last week, LIV and the tour stunned the golf world by agreeing to merge the PGA Tour and European tour with the Saudi golf interests, while also dropping all lawsuits between the parties. Al-Rumuyyan will join the PGA Tour board of directors and lead a new business venture as its chairman. The PGA Tour itself will remain a tax-exempt entity.

It was a move expected to receive scrutiny from US federal regulators and lawmakers, and the launch of a Senate investigation is among the first dominoes to fall.

Among the uncertainties is how LIV Golf goes forward after 2023.

In his letters to Monahan and Norman, Blumenthal wrote about the skepticism critics hold over the Saudis’ intent “to use investments in sports to further the Saudi government’s strategic objectives.”

“Critics have cast such Saudi investments in sports as a means of “sportswashing” – an attempt to soften the country’s image around the world – given Saudi Arabia’s deeply disturbing human rights record at home and abroad,” the letter said.

Blumenthal asked for a a huge trove of documents – essentially all communications between LIV and the tour beginning in October 2021 through to the present.

Al-Rumayyan said last week that Norman was not apprised of the deal until shortly before it was announced.