The court has granted the PGA Tour permission to sue the investment fund of Saudi Arabia, which directly backs LIV Golf.
Key Details
- The U.S. District Court for the Northern District of California is allowing the PGA Tour to add Saudi Arabia’s Public Investment Fund, LIV’s financial backer, and its governor, Yasir Al-Rumayyan, as defendants in its lawsuit against LIV Golf, according to reports from The Wall Street Journal.
- The lawsuit was initially filed by LIV golfers suing the PGA but has now turned into a legal battle against the Public Investment Fund of Saudi Arabia.
- The lawsuit alleges that the sovereign-wealth fund of Saudi Arabia owns more than 93% of the LIV Golf circuit, while LIV representatives have continuously stated that the two parties are separate entities and Yasir Al-Rumayyan is just a LIV investor.
Why it’s news
The fight between the PGA Tour and the controversial new LIV Golf league continues as the court has officially granted the PGA Tour the right to sue LIV Golf’s Saudi financial backers directly.
A recent ruling from the U.S. District Court for the Northern District of California will allow the PGA Tour to add Saudi Arabia’s Public Investment Fund, LIV’s financial backer, and its governor, Yasir Al-Rumayyan, as defendants in the lawsuit.
LIV has argued that bringing in the Public Investment Fund (PIF) and Yasir Al-Rumayyan as defendants would be dragging in parties subject to sovereign immunity based on allegations.
Regardless of sovereign immunity, the court ruled that the two parties would have to be present for dispositions and produce any documents needed in the court.
The PGA Tour is arguing that the sovereign-wealth fund of Saudi Arabia owns more than 93% of the LIV Golf circuit and funds 100% of the circuit, while LIV says the two parties are separate and Yasir Al-Rumayyan is just an investor of the league.
The arguments from LIV have been rejected by court judges stating that it is evident that Yasir Al-Rumayyan is more than just an investor of the league.
The LIV Golf TIMELINE
June 6 – The first player to defect from the PGA to join LIV was Phil Mickelson. He was reportedly offered $200 million to jump to the new tour, a big number considering he only made $94 million in his career with the PGA.
June 7 – The weekend’s winner and former number-one golfer in the world, Dustin Johnson, jumped on—signing a four-year contract with LIV reportedly worth $125 million. Other big names followed immediately… Sergio Garcia, Talor Gooch, Louis Oosthuizen, Kevin Na, Ian Poulter, Martin Kaymer, Graeme McDowell, Charl Schwartzel, Lee Westwood, Bryson DeChambeau, Patrick Reed, Brooks Koepka, Abraham Ancer, Matthew Wolff, Paul Casey, and Henrik Stenson.
July 22 – Then LIV secured someone who wasn’t there to swing clubs. Highly popular golf commentator David Feherty joined the action. Shortly after, the league snatched two-time Masters champion, Bubba Watson.
August 1 – LIV tried to obtain golf legend Tiger Woods, but he declined. LIV CEO Greg Norman said Woods turned down a nearly $800-million deal.
Woods voiced his distaste for the players leaving the PGA. “I think that what they’ve done is they’ve turned their back on what has allowed them to get to this position,” he said.
August 3 – Mickelson, Bryson DeChambeau, and nine other LIV golfers filed an antitrust complaint against the PGA Tour. The lawsuit comes after the players were suspended from the PGA Tour over their involvement with the fledgling tour. The golfers were denied by a judge, giving LIV its first defeat.
August 24 – PGA announces new changes that will go into effect in the 2023 season. New structural changes include ranking “top players,” more players and money for the Player Impact Program, and a set number of tournaments. “I laugh at what the PGA Tour players have come up with,” says golfer Lee Westwood, who was suspended from the PGA circuit when he signed on with LIV. “It’s just a copy of what LIV is doing.”August 30 – Most recently, LIV snagged the number two golfer. Cameron Smith left the PGA. Smith is the highest-ranked player to leave the PGA for LIV thus far—after winning The Open Championship in July, the Australian refused to confirm or deny whether he was jumping ship.
November 2022 – LIV’s inaugural season wrapped up, but controversy stuck around.
January 2023 – After struggling to secure a broadcast deal, the controversial LIV Golf has reached a deal to broadcast on the CW Network. Although LIV Golf was well-financed by the Public Invest Fund of Saudi Arabia, it had difficulty competing with the PGA Tour without a broadcast deal. This deal will allow LIV to reach a broader audience and possibly rope more professional golfers from the PGA.
January 2023 – LIV partnered with former President Donald Trump. Three of Trump’s golf courses will be used in LIV Golf’s first official season.The inaugural season will feature 14 events in seven countries at top-rated courses. The tour will return to five venues that hosted previous LIV events, including some Trump-owned properties.
February 2023 – Netflix series Full Swing prominently reports on how the LIV Golf-PGA Tour battle has played out on the course, revealing contentious interviews and discussions with some of the top golfers who have defected from the PGA to LIV.
