The PGA Tour merger with Saudi-backed golf company LIV has sparked a surprising bipartisan harmony in Capitol Hill. Conservatives and Liberals have united to sabotage the deal.
Others are calling for congressional investigation. Some lawmakers are calling for congressional investigations. They say that only after regulators take action will there be a desire for Congress to get involved, even though a majority are openly skeptical of the deal.
Josh Hawley, R-Mo. Senator, said: “That’s my principle. I want to ensure that it passes antitrust inspection.” said. I would like to see the DOJ do their merger analysis. “I would like to know what the DOJ has concluded on this.”
Many members of Congress have criticised the mega-merger of golf clubs, warning that this would consolidate Saudi Arabia’s influence in the United States despite serious concerns from both parties about the Saudi human rights record.
The Department of Justice would be on it if the three largest automakers in America decided to merge. Richard Blumenthal, a Democrat from Connecticut, said: “That’s exactly what we have.” “We are thinking of ways to continue to bring attention to the antitrust issues the Department of Justice must examine. But they are pretty obvious,” said Sen. Richard Blumenthal (D-Conn.).
Outside groups also push Congress to stay away from the merger, and instead leaning on agencies to stop the deal on antitrust reasons.
Katherine Van Dyck is senior legal counsel at the American Economic Liberties Project (a progressive antimonopoly group). She said: “This is an antitrust violation that’s pretty obvious.” “To the extent Congress interferes, I believe it should be investigating the harms that can result from this.”
The lawmakers are aware of the potential antitrust issues that could arise due to comments made by PGA Tour commissioner Jay Monahan, who said that the LIV agreement would ” remove the competitor” in addition reports stating that no antitrust attorneys had been involved in the signing of the final deal that was revealed in a surprise Tuesday announcement.
Members of Congress, too, who have expressed no concern about the deal.
“We have a lot to deal with, and Saudi Arabians purchasing a golf team is not on my list,” said Sen. J.D. Vance (R, Ohio) said.
Vance said that antitrust issues are “more interesting” and would ultimately be “a DOJ or FCC issue — but yes, it is an issue.”
Mitt Romney, R-Utah, said about the merger: “It’s giving me some concern – that’s being examined by a federal office that oversees foreign investments.”
Mike Lee, the top Republican on a subcommittee of the Judiciary Committee responsible for antitrust, , said that the deal looks like an established, dominant incumbent acquiring a young competitor.
The Congressional leadership has taken a hands off approach towards the golf merger. Senate Minority leader Mitch McConnell said it was “not a government concern,” and Majority Leader Chuck Schumer stated that he would leave it to the professionals to decide what is best for golf.
Ron Wyden, the chair of the Senate Finance Committee (D-Ore. ), called it a “shameless and hypocritical cash grab,” but he promised that his committee would look into certain aspects. Wyden’s aide told reporters that he is “considering different options” including asking for a review by the Committee on Foreign Investment in the United States or other matters under the jurisdiction of his powerful panel.
Congress’ apparent reluctance in approving the mega-deal contrasts with its reaction to the 1966 merger of the National Football League and American Football League. The deal was allowed to go forward when lawmakers granted an exemption from antitrust laws.
The domestic AFL, of course, lacked Riyadh’s political baggage — especially after the Biden Administration concluded that the Saudi Crown Prince approved the operation which led to the killing in 2018 of Washington Post journalist Jamal Khashoggi.
Some members of Congress don’t think they should slow the golf green light down.
Todd Young, R-Ind., said: “It is eminently predictable that [the PGA Tour] will end up putting its business interests before their purported convictions.” said. “I don’t think many people in government are contemplating taking any action against them. For me, the analysis ends here.”
Rep. John Garamendi, D-Calif., was the first in the House to take action in light of the LIV – PGA Tour agreement, introducing a bill to revoke PGA Tour’s tax-exempt designation. Garamendi welcomed congressional scrutiny of the deal.
In an interview, he stated that “we have a clear worldwide monopoly in professional golf — and they won’t be paying taxes.” “Congress should certainly investigate the anticompetitive effect of this new professional golf monopoly.”
Maxine Waters, ranking member of the Financial Services Committee and a representative from California, also expressed interest in this deal. She requested that the Committee on Foreign Investment investigate the matter.
Democrats were shocked that the PGA Tour would suddenly reverse its position after criticizing the Saudi-funded insurgent LIV Golf.
In an interview, Sen. Tim Kaine said: “I nearly threw up.” I thought that the PGA stood for values which are not priced, but it turned out that I was wrong. “I’m disappointed I was wrong.”
This is not to say that a large number of elected officials backed the deal.
Now we’ll bring the big boys back into the game. “Last week, I saw the top 10, and I didn’t recognize most of them,” said Sen. Tommy Tuberville. He was referring to big-name golfers that had defected from LIV. He dismissed concerns about monopolies as “something we can’t be worried about.”
Tuberville laughed when asked if he was worried that the Saudis would venture into professional sports leagues such as the NFL. “They’ve got a lot money, but they ain’t gonna be affording that.”
Some lawmakers argued that the decision had no wider nexus with national policy, and suggested that any antitrust complaints be handled by federal regulators and courts.
It’s just a golf team. What threat does this pose to our national safety? “I don’t agree on every Saudi policy but they won’t be able destroy our country by a golf event,” said Marco Rubio, R-Fla., vice chair of Intelligence Committee. “Laws and courts are there to deal with antitrust concerns,” he said. “They can take it to court.”
In fact, many Republicans argued that private deals are outside of their jurisdiction.
I love to watch golf on television. Kevin Cramer, R-N.D., said: “I don’t care who the initials or logos are on it.” “I don’t know why other people’s underwear is grouped together, but mine isn’t.”
Sen. Shelley Moore Capito, a member in the Senate GOP leadership and a member from West Virginia, also said that she had no particular concerns about antitrust.
She said, “They used to be the PGA — I never heard anyone raise issues when they were a single entity.” “You know what?” “Let’s just have fun playing golf.”
