LIV Golf handed a big blow in ongoing litigation battle against PGA Tour
The LIV Golf and PGA Tour controversy has been the talk in recent times. And just days before the start of LIV's second season, the newly launched league has found itself in trouble again.
The financial backer was dealt a setback by a federal court, which may drastically change the circuit's antitrust case against the PGA Tour.
The judge's ruling states that the Public Investment Fund of Saudi Arabia and its governor may be deposed and will be asked to submit documents in the ongoing legal battles between the PGA Tour and LIV Golf.
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What is the new turn in LIV Golf and PGA Tour controversy?
The newly launched golf league, LIV Golf, has been surrounded by controversies since its launch in June 2022. The league is backed by the Public Investment Fund of Saudi Arabia, an organization owned by the Crown Prince of Saudi Arabia, Mohammed bin Salman.
According to federal magistrate judge Susan van Keulen, the decision is a significant victory for the tour because it disproves LIV's assertions that the PIF and Yasir Al-Rumayyan are exempt from sovereign immunity laws because of their actions "falling within the commercial activity, with the exception of the Foreign Sovereign Immunity Act."
If the ruling is upheld, it would open up previously unheard-of access to the business dealings of the sovereign wealth fund, which Saudi Arabia has long fought to keep secret.
As part of Saudi Arabia's Vision 2030, the move claimed that LIV is the result of a 'long-contrived scheme' to dominate professional golf. The circuit made an attempt to file a complaint against PIF and Al-Rumayyan late last month.
According to documents the PGA Tour obtained via discovery in December, PIF and Al-Rumayyan were 'helpful in persuading players to violate their tour contracts.'
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The PGA tour claims that Al-Rumayyan actively engaged in contract negotiations, deliberately sought out players. They expressly approved each of their contracts while being aware that doing so would be in violation of the players' contracts with the tour.
Van Keulen has refuted LIV's claims that the PIF was a "simple investor," noting that it was clear that the PIF was "the moving force behind the establishment, funding, oversight, and management of LIV."
The Saudi Arabian government established the wealth fund in 1971 as a way to invest in various businesses and initiatives. Its estimated value is about $650 billion.
Al-Rumayyan is thought to be the driving force behind the LIV Golf and Golf Saudi programs. He is a close friend of Crown Prince Mohammed bin Salman. Despite Greg Norman being the most prominent executive of LIV Golf, sources with knowledge of the company informed Golf Digest that Al-Rumayyan and Majed Al Sorour were the two people that had the last say in decisions about LIV Golf. LIV Golf dismissed Al Sorour's employment as managing director last month.
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Due to their "overbreadth both in scope and volume of requests," the judge did ask that the subpoenas for the tour be more targeted. Indeed, the judge chose to rule in LIV's favor. The tour does have the power to keep subpoenas in reserve in order to remove Al-Rumayyan.
Judge Beth Freeman of the U.S. District Court would then hear the judgment. She had already found LIV Golf and its members guilty of violating a temporary restraining order last summer. The league is likely to challenge the judgment. The antitrust action may therefore see a significant delay as a result of LIV filing an appeal with the 9th Circuit Court.