The PGA Tour, Saudi Arabia’s Public Investment Fund, and the sovereign wealth fund’s governor, Yasir Al-Rumayyan, have filed a motion to dismiss all legal claims against each other in a federal antitrust lawsuit. The stipulation was filed in the U.S. District Court for the Northern District of California in San Jose on Friday. As per the agreement, LIV Golf, which is funded by the Public Investment Fund, will voluntarily dismiss its claims against the tour, and the tour will voluntarily dismiss its claims against LIV, PIF, and Al-Rumayyan. Since the claims will be dismissed with prejudice, LIV Golf’s antitrust claims and the Tour’s counterclaims that LIV Golf interfered with its contracts with players cannot be refiled again.
The PGA Tour’s Partnership
On June 6, the PGA Tour announced its plan to form an alliance with the DP World Tour and PIF. A new commercial entity would combine the PGA Tour’s and PIF’s commercial activities, including LIV. The sides announced in a news release that they would end all legal action against each other.
Government Reviews
The U.S. Department of Justice has opened a review of the planned alliance, according to The Wall Street Journal. The U.S. Senate Finance Committee and the Senate Permanent Subcommittee on Investigations have also opened reviews of the new partnership. Justice Department officials were already investigating the PGA Tour’s alleged monopolistic practices, which were outlined in a federal antitrust lawsuit filed by LIV Golf League players in August. The PGA Tour was accused of using its monopoly powers to quash competition and discourage vendors, media companies, and others from working with LIV Golf.
Implications of the Dismissal
The dismissal of legal claims by the PGA Tour, Saudi Arabia’s Public Investment Fund, and Yasir Al-Rumayyan in the antitrust lawsuit is a significant development. It paves the way for the formation of the new commercial entity that combines the PGA Tour’s and PIF’s commercial activities. As per the agreement, there will be no legal hindrance to the partnership. However, the government reviews of the partnership are ongoing, and their outcome is yet to be seen. The PGA Tour’s alleged monopolistic practices have been under scrutiny, and the investigation is likely to continue. The dismissal of the legal claims does not absolve the PGA Tour of its alleged anti-competitive practices.
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