US Justice Department to review LIV Golf and PGA Tour merger

The US Justice Department will investigate the LIV Golf and PGA Tour merger after the two entities decided to collaborate in a stunning turn of events on Tuesday, June 6. It is understood that the US Justice Department will handle the matter instead of the US Federal Trade Commission, which often handles matters of this nature in sports. PGA Tour commissioner Jay Monahan, who previously opposed the involvement of LIV in its matters, was the central figure in the merger that saw the two entities sign a contract in principle.

'We are going to grow our industry'

“Every single player in men’s professional golf is going to have more opportunity and more growth,” Monahan was quoted as saying.

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It is reported that PGA players that turned down the opportunity to sign for LIV could soon be compensated after the merger.

“We are going to grow our industry. This is all positive. I think those are all the serious conversations that we're going to have," he explained. "Ultimately, everything needs to be considered. Ultimately, what you're talking about is an equalisation over time and I think that's a fair and reasonable concept,” Manmohan added in his statement.

What is the actual matter?

For months, the both PGA Tour and LIV Golf were in hot water as the pro-golfers were suspended from participating in the tournaments organised by the former body. The two have been in court since August 8, 2022, when 11 pro-golfers were suspended from PGA events. PGA had alleged that LIV Golf, backed by the Saudi Arabia Public Investment Fund, offered millions of dollars to pro-golfers to break their contracts.

On September 28, 2022, the PGA, challenging LIV’s laws suit from August, filed a countersuit against the Saudi Public Investment Fund (PIF) for wrongly participating in the affairs of the PGA administration.

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However, the matter has now been resolved and will see the divide between the golfers come to an end in the coming days.

It is also reported that the two entities have signed a deal that will see PGA Tour and LIV Golf’s commercial businesses and rights fall undera new unnamed company. It is also reported that the PIF will invest billions in the new brand that will see the world of golf reach newer heights.

While the terms of the deal were not revealed, as part of the agreement, the three groups will establish “a fair and objective process for any players who want to re-apply for membership with the PGA Tour or DP World Tour” following the end of the 2023 season, according to a release.

The agreement will however require the approval of the PGA Tour policy board. However, the latest developments are likely to see the end of the civil war between the two major bodies of golf.

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