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The US Justice Division will assessment the PGA Tour’s plan to merge with Saudi-backed LIV Golf to find out if it violates antitrust regulation, the Wall Avenue Journal has reported.
The PGA Tour, DP World Tour and rival Saudi-backed LIV circuit, which had been concerned in a bitter battle that break up the game, introduced an settlement final week to merge and kind one unified industrial entity.
The Justice Division had beforehand opened a probe into the PGA Tour’s methods for attempting to maintain its gamers from defecting to LIV, which was paying mega-money to entice golfers to their circuit.
The Justice Division declined to remark whereas the PGA Tour didn’t instantly reply to an analogous request.
The LIV Golf sequence is bankrolled by the Saudi Arabia Public Funding Fund. Critics have accused it of being a automobile for the nation to enhance its repute – “sportswashing” – because it faces criticism of its human rights document.
A lot of the human rights-related backlash centres on the alleged involvement of the Saudi Arabian authorities in human rights violations, together with the 2018 homicide of Washington Submit journalist Jamal Khashoggi.
The proposed transaction has additionally already prompted concern on Capitol Hill. Most just lately, US senators Elizabeth Warren and Ron Wyden requested the Justice Division to open an antitrust investigation.
Wyden additionally mentioned on Thursday he would have a look at the transaction and work to revoke the Saudi PIF’s particular tax therapy.
On Monday, senator Richard Blumenthal requested the PGA Tour and LIV Golf for communications and information on their deliberate tie-up.
On the golf programs, skilled gamers have been caught unawares by the bombshell announcement of the deliberate merger.