Federal judge rules PGA Tour can depose LIV Golf's Saudi backers
PGA Tour draws first blood in civil war against LIV Golf as federal judge rules Jay Monahan and Co. can depose the rebel series’ Saudi backers in the breakaway’s ongoing lawsuit
- It represents a win for the Tour which could have access to key information
- Such dealings like recruiting and negotiation with players could be available
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The PGA Tour has had some semblance of a win in its long-running battle with LIV Golf, after a federal judge ruled the head of Saudi Arabia’s sovereign wealth fund must produce documents in its antitrust lawsuit against the Tour.
LIV Golf’s financial backer must also sit for depositions. US Magistrate Judge Susan van Keulen ruled late Thursday that PIF’s involvement falls under the commercial activity exception to the Foreign Sovereign Immunity Act.
Meaning, the PGA Tour is allowed to seek documents and any communication related to such matters as LIV Golf’s recruiting and negotiating with players, its business plans and its involvement in the new league.
Lawyers for the Public Investment Fund (PIF) and its governor, Yasir al-Rumayyan, had sought to quash subpoenas claiming sovereign immunity. If the ruling holds, it could pull back the curtain on the PIF’s business dealings.
The seemingly pro-PGA Tour ruling, comes one week before LIV Golf is set to begin its second season. It will be offering $25 million in prize money at its 13 events, with $50 million for the team championship finale.
PGA Tour (pictured right, commissioner Jay Monahan) had a small win in its battle with LIV Golf
A federal judge ruled that PIF’s governor Yasir al-Rumayyan (right) could be deposed
Any trial in the lawsuit would not be until at least January 2024. Phil Mickelson and Bryson DeChambeau were among 11 players who originally filed the antitrust lawsuit in August.
LIV Golf joined the lawsuit, and eventually all but three players – DeChambeau, Matt Jones and Peter Uihlein – removed themselves as plaintiffs.
In her 58-page ruling, some of which was heavily redacted, van Keulen said PIF’s involvement was of commercial interest to Saudi Arabia.
‘It is plain that PIF is not a mere investor in LIV; it is the moving force behind the founding, funding, oversight, and operation of LIV,’ she wrote in her decision.
‘PIF’s actions are indisputably the type of actions by which a private party engages in trade and traffic or commerce.’
She also said al-Rumayyan was ‘personally involved in and himself carried out many of PIF’s activities’ related to establishing, funding and operation of the rival league.
LIV Golf has accused the PGA Tour of using monopolistic powers to squash competition.
The Saudi-backed league has 48 players that compete individually for $20 million in prize money and through four-man teams that offer an additional $5 million purse.
The Tour had some semblance of a victory over LIV, which has poached the likes of Cam Smith
The Saudi-backed circuit will not see a trial involving this lawsuit until at least January 2024
With bonus money involved, Dustin Johnson made $35.6 million last year in eight tournaments. Johnson, Mickelson, DeChambeau and four-time major champion Brooks Koepka were some of the biggest names to join with signing fees reported to be in the range of $150 million.
The PGA Tour has responded to LIV´s threat by creating ‘elevated’ events that offer $20 million in prize money, such as the Genesis Invitational this week in Los Angeles. Top players, led by Tiger Woods and Rory McIlroy, are involved in building a new model for the PGA Tour aimed at bringing the top players together more often.
The PGA Tour suspended the LIV players for violating its membership regulations, which include requiring a release to play in overseas events. The tour does not allow players to compete in other tournaments in North America. LIV Golf has eight events in the United States this year.
The PGA Tour has suspended players who have transferred allegiances to the flashy LIV Golf
The offseason for LIV Golf included a television contract with The CW, giving its tournament a broadcast partner for US markets. Previously, tournaments were available only through YouTube or live streaming.
But the league has gone through its share of shakeups from within.
Majed Al Sorour, the CEO of Golf Saudi and managing director of LIV Golf, was transitioned out of that role last month. It was one of many changes at LIV Golf during the offseason in which its chief operating officer, chief marketing officer and chief communications officer have left the circuit.
LIV Golf has announced the addition of two more players for the second season – Mito Pereira of Chile, who is No. 46 in the world ranking; and Sebastian Munoz of Colombia, who is at No. 96.
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