SUMMARY
- The PGA Tour and Saudi Arabia's LIV Golf conclude a two-year feud with a controversial merger, combining their commercial businesses into an unnamed profit-making entity.
- The agreement sees the Saudi Public Investment Fund (PIF), a $600 billion sovereign wealth fund, as the sole investor in the new golf organization, drawing widespread criticism.
- Critics, including sports personalities, lawmakers, human rights organizations, and 9/11 victims' families, call out the deal as 'sportswashing' in light of Saudi Arabia's contentious human rights record.
Following two years of discord, the PGA Tour and Saudi Arabia's LIV Golf have caused a stir in the world of golf with the announcement of their unexpected partnership, a move that has elicited scorn from many in the United States, including commentators, lawmakers, and golf enthusiasts.
This unexpected development brings an end to a power struggle for the most talented golfers and has resulted in a volte-face from the PGA Tour. The organization had previously launched a lawsuit against Saudi Arabia, accusing it of leveraging high-paying contracts to players to effectively "sportswash" its controversial history. The merger concludes any ongoing legal disputes between the two and combines the commercial businesses and rights of the PGA Tour and LIV Golf into a yet-to-be-named profit-making entity.
LIV Golf, which was established in 2021 with ambitions to become the world's leading professional golf tour, is supported by the Public Investment Fund (PIF) of Saudi Arabia, a colossal $600 billion sovereign wealth fund managed by Saudi Crown Prince Mohammed bin Salman. Its generous salaries have lured some of the greatest names in golf away from the PGA Tour, sparking antitrust litigation with the American institution.
Jay Monahan, the PGA Tour Commissioner, stated in an interview following the news that the world of golf is better for this resolution, though many vociferously dispute this claim. The deal, which has been met with significant criticism, has resulted in the Saudi PIF becoming the sole investor in the new golf entity, with the first refusal rights on any future investment.
Criticism of the deal has been particularly harsh due to Saudi Arabia's dubious human rights record. However, the Kingdom is aggressively campaigning to present itself as a socially progressive country in line with the Crown Prince's Vision 2030 plan. Yet, many critics, including human rights organizations and family members of 9/11 victims, have criticized the merger as sportswashing.
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