The Department of Justice (DOJ) has launched an investigation into the merger between the PGA Tour and the Saudi-backed LIV Golf.
The Wall Street Journal reported on Thursday that the department notified the leagues about the probe. This marks the second investigation the DOJ has launched into the PGA Tour, after the department conducted an investigation last year into the golfing league over allegations of possible anticompetitive behavior.
DOJ’s latest investigation comes at a time when there’s uncertainty if the planned merger between the two entities will go through. A senior PGA Tour executive told employees that the outcome of the announced merger won’t be known for at least a year, according to the Journal.
The senior official also said that it’s a possibility that the plan will fall apart entirely if the sides cannot agree on specific terms, the outlet reported.
The Department of Justice declined to comment at The Hill’s inquiry.
It’s been a week since PGA Tour announced the agreement to merge with LIV Golf in order to create a larger organization. The merger will combine both entities’ commercial businesses — along with DP World Tour, also known as the European PGA Tour — into one for-profit, yet-to-be-named entity.
LIV Golf, founded in 2021, is backed by the Saudi Arabia Public Investment Fund (PIF), an entity led by Saudi Crown Prince Mohammed bin Salman. LIV has also come under scrutiny for Saudi Arabia’s controversial record of human rights abuses.
The agreement ended a year-long antitrust litigation between the two golfing leagues. The PGA Tour, founded in 1929, previously suspended a list of prominent golfers — including Phil Mickelson, Brooks Koepka, and Bryson DeChambeau — for their decision to jump ship to the up-start league.
The merger also drew the attention of many in Washington, as lawmakers have raised their concerns about implications of the merger between the two entities.
Senate Finance Committee Chairman Rod Wyden (D-Ore.) launched a probe into the matter on Thursday, asking PGA leadership in a letter to provide more information on the deal. He also introduced legislation to remove PIF’s special tax exemption that applies to specific forms of investment by foreign governments.