Could someone else stop this deal from going through?
The Department of Justice, the Federal Trade Commission, or the European Commission could certainly try.
For nearly a year, the Justice Department has been investigating the close ties between the PGA Tour and other golf powerhouses. Among those issues is whether an organization has improperly influenced the official World Golf Rankings, which determine a player’s eligibility for a particular event and can be an important factor in a player’s success and earnings. include.
As part of the deal, the LIV and PGA Tour agreed to drop the dueling lawsuit, but doing so would not necessarily change the Justice Department’s investigation. If there was any misconduct on the PGA Tour, the merger would inevitably result in him being punished by the PGA Tour.
“Announcing the merger does not excuse past sins,” said Bill Baer, who headed the Justice Department’s antitrust division in the Obama administration.
The federal government also reviews more than 1,000 merger approvals each year through the Justice Department and the FTC, and the European Commission also reviews mergers for the EU. Without a final agreement, it’s not clear if this is the kind of combination that regulators can or will try to block.
Saudi Arabia seems to have grand ambitions in sports. Will you continue to be the junior partner of the PGA Tour of golf?
As always, Saudi Arabia has the perfect vehicle to gain more control: money.
Al Rumayyan said the Public Investment Fund will invest “billions of dollars” in the new for-profit entity. The company also retains “exclusive rights to further invest in new entities, including preferred rights to capital that may be invested in new entities including the PGA Tour, LIV Golf and DP World Tour.” A release announcing an agreement.
If the Public Investment Fund invests more money, it will certainly demand more board seats and increased voting rights, further tilting control of men’s professional golf in favor of the kingdom.