How the US election could impact whether LIV Golf-PGA merger goes through
It has been claimed that the upcoming presidential election could determine the future of the Gulf Civil War.
The sport has been in turmoil since LIV Golf, funded by Saudi Arabia’s Public Investment Fund, launched a breakout league and began poaching games from the PGA and DP World Tours.
In June 2023, a framework agreement was announced to merge the warring parties. Since then, talks about a potential deal that would see PIF pump more than $1 billion into the PGA Tour have dragged on.
The political response to an agreement could reportedly depend on who wins next month’s election between Vice President Kamala Harris and Donald Trump.
According to legal experts, quoted by The Athleticsthe two candidates for the White House would likely take different approaches to a future deal.
PIF Governor Yasir Al-Rumayyan (L) talks to PGA Tour Commissioner Jay Monahan (R)
The goal, outlined by PGA Tour chief Jay Monahan and PIF Governor Yasir Al-Rumayyan, was to “reunify the world of professional men’s golf.”
But Monahan’s claim that the deal would “take the competitor off the board” raised antitrust concerns, with The Athletic claiming that “the DOJ (Department of Justice) red flags have not gone away.”
The next administration will reportedly have the power to “dictate the DOJ’s priorities,” and experts believe a merger is much more likely to happen if Trump wins.
The Republican candidate has hosted a number of LIV Golf events and has previously urged golfers to “take the money” from the Saudi-funded breakout. The PIF also reportedly invested $2 billion in the private equity firm of his son-in-law, Jared Kushner.
Brooks Koepka and Rory McIlroy are among the stars involved in the sports civil war
Moreover, the former president “has never shown particular respect for anti-competitive regulations,” it said.
It is thought that Harris, on the other hand, would remain aligned with the Biden administration. Under this regime, the DOJ has reportedly shown reluctance to reduce competition in other sectors.
“I don’t think the DOJ will be okay with these two being combined,” one expert told The Athletic.
Only the courts, not a president, can decide whether a merger is illegal, but governments can influence whether a deal is challenged.
Once an agreement is proposed, the DOJ will begin investigating whether there are any antitrust violations.