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      PGA Tour Can Depose Saudi Wealth Fund’s Leader, Judge Rules

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      The decision in a case involving the LIV Golf series could reveal details of the operations of Saudi Arabia’s Public Investment Fund.A federal magistrate judge has ruled that the leader of Saudi Arabia’s sovereign wealth fund, which has bankrolled the new LIV Golf series, must sit for a deposition by lawyers for the PGA Tour who sought his testimony as part of the tangle of litigation involving the sport-splitting circuit.The decision, released on Thursday night in California after an interim legal skirmish that dealt with questions of sovereign immunity and the reach of Saudi law, could reveal details of the wealth fund’s operations and the power of its governor, Yasir al-Rumayyan, over its investments abroad.The wealth fund is expected to ask a federal judge in San Jose, Calif., to review the decision by the magistrate judge, Susan van Keulen, who is helping oversee the bitter legal clash between the PGA Tour and LIV Golf.In her 58-page ruling, portions of which were redacted in the version that became public late Thursday as the sides jousted about its confidentiality, van Keulen wrote that it was “plain” that the wealth fund was “not a mere investor in LIV.”Instead, the judge wrote, the wealth fund was “the moving force behind the founding, funding, oversight and operation of LIV.” Al-Rumayyan, she wrote elsewhere in her order, “was personally involved in and himself carried out many” of the wealth fund’s activities to create and develop LIV.A Guide to the LIV Golf SeriesCard 1 of 7A new series. More

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      Power to Punish LIV Golfers Faces a Legal Test in Europe

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      An arbitration panel will meet next week to weigh whether the European Tour may penalize the men who played on the Saudi-backed circuit.DUBAI, United Arab Emirates — Many of the golfers had wandered away one afternoon last week, seeking lunch or refuge from the Emirati sun or something besides the monotony of a driving range.Ian Poulter, though, kept swinging, the consistency nearly enough to disguise that there is almost no professional golfer in greater limbo.Poulter, who has competed on the European Tour for more than two decades, is among the players who defiantly joined LIV Golf, the breakaway circuit bankrolled by Saudi Arabia’s sovereign wealth fund, and faced punishment from the tour. Next week, almost eight months after the first rebel tournament, arbitrators in London will weigh the tour’s choice to discipline defectors.The case is a test for the golf establishment’s response to LIV, which has guaranteed certain players tens of millions of dollars to compete in a league that insists it is looking to revive golf but that skeptics view as a front to rehabilitate Saudi Arabia’s reputation. Executives and legal experts say, though, that the arbitrators’ decision could also ripple more broadly across global sports as athletes increasingly resist longstanding restrictions on where they compete and as wealthy Persian Gulf states look to use the world’s courses, fields and racetracks as avenues for their political and public-relations ambitions.“The impacts of this case are potentially tremendous across all of international sport,” said Jeffrey G. Benz, a sports arbitrator in London who is not involved in the golf case and noted how other leagues and federations have faced opposition to their efforts to stymie potential rivals.Although the issue that next week’s panel will consider is formally a narrow one, dealing only with the European Tour’s conflicting event policy, a ruling in favor of the players could embolden like-minded but wary athletes to plunge into the universe of cash-flush start-ups. A victory for the tour, marketed as the DP World Tour, would reinforce the kind of rules that marquee sports organizers have harnessed for decades to preserve market power. And whichever side prevails will assuredly tout victory as vindication for its approach to professional sports.“There’s the public opinion part, there’s the influence it might have on other athletes, there’s the influence it might have on other rich people who might think, ‘Hey, I’d really love to get into sports. Let’s put a group together and go attack name-the-sport,’” said Jill Pilgrim, a former general counsel for the L.P.G.A. who now teaches sports arbitration at Columbia Law School.“They’re watching all of this,” she added.Poulter has argued that playing with the new circuit was not all that different from the rest of a storied career dotted with appearances across tours.Lynne Sladky/Associated PressThe golf case began last June, when Poulter was among the European Tour players who played in a LIV Golf tournament without the tour’s permission. The tour, wary of undermining the rules that fortify its sponsorship and television-rights deals, responded with short suspensions and fines, modest penalties compared to the indefinite suspensions that the United States-based PGA Tour meted out.The players insist, though, that they are independent contractors and should have greater freedom to pick when, where and for whom they compete. An arbitrator paused the tour’s punishments last summer but did not rule on the substantive arguments that will go before this month’s panel. The arbitrators could announce their decision within weeks of the five-day, closed-door hearing, which will begin Monday.A Guide to the LIV Golf SeriesCard 1 of 7A new series. More

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      PGA Tour Seeks to Add Saudi Wealth Fund to Lawsuit Over LIV Golf

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      A federal judge will decide whether one of the tour’s leading avenues to investigate and challenge a new rival can be expanded.The PGA Tour intensified its legal fight against LIV Golf on Tuesday, when it asked a federal judge in California to let it add Saudi Arabia’s sovereign wealth fund to a lawsuit that has become one of its principal ways to investigate — and try to undercut — the circuit that has assaulted the tour’s customary dominance.The request, filed in the Federal District Court in San Jose, Calif., where LIV and the PGA Tour have argued for months over matters like antitrust law and contract interference, came as the two sides braced for a ruling about whether tour lawyers might depose Yasir al-Rumayyan, the wealth fund’s governor. The fund, formally known as the Public Investment Fund, effectively owns most of LIV.But with a judge’s decision pending and potentially months of appeals ahead, the tour sought another way to examine and retaliate against Riyadh’s entry into men’s professional golf. In Tuesday’s filing, the tour also asked to add al-Rumayyan to its suit.“Documents produced by LIV reveal that P.I.F. and Mr. al-Rumayyan were instrumental in inducing players to breach their tour contracts,” the tour told the judge Tuesday, when it complained that the wealth fund and its leader had been “exercising near absolute authority” over the circuit.The wealth fund has previously rejected the tour’s accusations that it and al-Rumayyan dominate LIV, which has used condensed schedules and enormous contracts to entice players such as Bryson DeChambeau, Sergio García, Brooks Koepka, Phil Mickelson and Cameron Smith to leave the PGA Tour for the league. LIV, which announced a decidedly modest American television rights deal last week, is expected to begin its 14-stop 2023 season next month in Mexico.Phil Mickelson, left, with al-Rumayyan during LIV Golf’s inaugural tournament last year at Centurion Golf Club near London.Andy Rain/EPA, via ShutterstockJudge Beth Labson Freeman will consider the tour’s request and weigh factors such as whether the tour acted with sufficient haste to amend its lawsuit and whether its request is in good faith and not a mere stalling tactic.A Guide to the LIV Golf SeriesCard 1 of 6A new series. More

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      Masters Tournament Will Let LIV Golf Players Compete in 2023

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      The decision by Augusta National Golf Club is an interim victory for the upstart circuit, but other troubles loom.Augusta National Golf Club will allow members of the breakaway LIV Golf league to compete in the Masters Tournament, the first men’s golf major of 2023.The decision by the private club, which organizes the invitational tournament and has exclusive authority over who walks its hilly, pristine course each April, is an interim victory for LIV, the upstart operation bankrolled by Saudi Arabia’s sovereign wealth fund to much of the golf establishment’s fury.“Regrettably, recent actions have divided men’s professional golf by diminishing the virtues of the game and the meaningful legacies of those who built it,” Fred S. Ridley, Augusta National’s chairman, said in a Tuesday statement. “Although we are disappointed in these developments, our focus is to honor the tradition of bringing together a pre-eminent field of golfers this coming April.”But the approach announced by the club on Tuesday — continuing to rely on qualifying categories that often hinge on performances in PGA Tour competitions or other majors, or on certain thresholds in the Official World Golf Ranking — threatens to limit access for LIV players as more years pass, which could ultimately make it more difficult for LIV to attract new golfers.Ridley said Augusta National evaluates “every aspect of the tournament each year, and any modifications or changes to invitation criteria for future tournaments will be announced in April.”LIV declined to comment on Tuesday.The organizers of the British Open, the P.G.A. Championship and the U.S. Open have not said how or whether they will adjust their 2023 entry standards in the wake of LIV Golf’s emergence this year. Augusta National, though, has now offered what could be a template for LIV’s short-term relationships with the major tournaments.Augusta National, for instance, did not abandon its tradition of offering past winners lifetime entry into the tournament, a reprieve for the six LIV players who have already earned green jackets: Sergio Garcia, Dustin Johnson, Phil Mickelson, Patrick Reed, Charl Schwartzel and Bubba Watson. Recent winners of other majors will still qualify for the 2023 Masters, clearing the way, for at least a little longer, for players like Bryson DeChambeau, Brooks Koepka and Cameron Smith.And Augusta, which has become entangled in the Justice Department’s antitrust inquiry into men’s professional golf, will continue to admit players who are in the top 50 in the world rankings at certain times.The world ranking system is a weapon that is as subtle and technical (and disputed) as it is consequential and, for some golfers, determinative. LIV players do not currently earn ranking points for their 54-hole, no-cut events, and they have fallen in the rankings as other golfers have kept playing tournaments on eligible tours. In July, LIV applied to be included in the rankings, and more recently, it partnered with the MENA Tour, which is a part of the system, to try to keep its players in the mix.But the board that oversees the rankings includes golf executives whose reactions to the breakaway series have ranged from skeptical to hostile, and the group has not embraced LIV’s requests. If major tournaments like the Masters continue to use world ranking points as a qualifying method, at least some players will see their entry prospects evaporate. A sustained reliance on PGA Tour events as other qualifying avenues will also stanch access for LIV players.Whether LIV golfers can play the majors may be crucial to the upstart’s prospects in the years ahead. Beyond golfing glory, major championship winners earn heightened public profiles, and they are more likely to attract lucrative sponsorship arrangements. If LIV’s players face extraordinary constraints on their chances simply to reach a major tournament field, much less to win the competition, the league may have trouble recruiting new players.The possibility of exclusion from the majors was enough to warrant a brief legal spat over the summer, when the LIV players Talor Gooch, Matt Jones and Hudson Swafford asked a federal judge to order their participation in the PGA Tour’s FedEx Cup playoffs. Gooch, Jones and Swafford had all failed to qualify for the 2023 majors through other means, and their lawyers warned that keeping them from the playoffs would probably end their chances at doing so. Heeding the arguments of the PGA Tour, which said that “antitrust laws do not allow plaintiffs to have their cake and eat it too,” the judge turned back their request.Augusta National’s decision on Tuesday, fleeting as it might ultimately prove, is still a milestone for LIV, which has not signed a television contract or attracted marquee sponsors. Those symptoms of trouble have only deepened concerns about the long-term viability of the new tour, which many critics regard largely as a means for Saudi Arabia to sanitize its reputation as a human rights abuser. Last week, the circuit acknowledged that its chief operating officer, who was widely seen as integral to its business ambitions, had resigned.In recent months, Greg Norman, LIV’s chief executive, urged major tournaments to “stay Switzerland” and allow his circuit’s players to participate.“The majors need the strength of field,” Norman, a two-time British Open victor and three-time runner-up at the Masters, said last month. “They need the best players in the business. They want the best competition for their broadcasting, for their sponsors, all the other things that come with it.”But LIV stands to benefit, too. A victory in a major by one of its players, LIV supporters have said, would give the circuit greater legitimacy.“If it is a LIV player who wins a major next year,” Norman said, “that goes to show you how we work within the ecosystem.” More

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      Augusta National and U.S.G.A. Drawn Into Justice Department Antitrust Inquiry

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      The Justice Department is investigating the PGA Tour for anticompetitive behavior in its dealings with LIV Golf, the breakaway Saudi-backed league.DORAL, Fla. — The Justice Department’s antitrust inquiry into men’s professional golf — a sport splintered this year by the emergence of a lucrative circuit financed by Saudi Arabia’s sovereign wealth fund — has in recent months come to include the organizers of some of the most hallowed and influential tournaments in the world, according to people familiar with the matter.The United States Golf Association, which administers the U.S. Open, acknowledged on Wednesday that the Justice Department had contacted it in connection with an investigation. Augusta National Golf Club, which organizes the Masters Tournament, and the P.G.A. of America, which oversees the P.G.A. Championship, have also drawn the gaze of antitrust officials.The federal inquiry is unfolding in parallel with a separate civil suit filed in California by LIV Golf, the new Saudi-backed series, accusing the PGA Tour, which organizes most of the week-to-week events in professional golf, of trying to muscle it out of the marketplace. Moreover, LIV has contended that major tournament administrators, such as Augusta National and the P.G.A. of America, aided in the PGA Tour’s urgent efforts to preserve its long standing as the premier circuit in men’s golf.LIV, for instance, has accused the leaders of the R&A, which runs the British Open, and Augusta National of pressuring the Asian Tour’s chief executive over support for the new series. LIV also said that Fred S. Ridley, the Augusta National chairman, had “personally instructed a number of participants in the 2022 Masters not to play in the LIV Golf Invitational Series” and that the club’s representatives had “threatened to disinvite players from the Masters if they joined LIV Golf.” (A handful of golfers, including Phil Mickelson, joined the lawsuit but later withdrew their names from it, content to let LIV Golf wage the courtroom fight.)LIV executives have also fumed over perceived stalling by Official World Golf Ranking administrators to award ranking points to LIV players, who include Dustin Johnson, Brooks Koepka and Cameron Smith. The ranking system’s governing board includes executives from each of the major tournament organizers, as well as the PGA Tour.A Quick Guide to the LIV Golf SeriesCard 1 of 6A new series. More

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      PGA Tour Accuses LIV Golf of Interfering With Its Contracts

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      The PGA Tour filed a counterclaim against the breakaway, Saudi-backed LIV Golf series, which has accused the tour of antitrust violations.The PGA Tour filed a countersuit against LIV Golf on Wednesday, the latest turn in a winding legal battle between the tour and the Saudi-backed circuit that has drawn a number of top players.In its counterclaim, the PGA Tour, which LIV is suing for antitrust violations, said the upstart series had “tortiously interfered” with the tour’s contracts with golfers who had left to join LIV. It added that LIV had “falsely informed” its players that they could break their contracts with the tour “for the benefit of LIV and to the detriment of all tour members.”“Indeed, a key component of LIV’s strategy has been to intentionally induce tour members to breach their tour agreements and play in LIV events while seeking to maintain their tour memberships and play in marquee tour events like The Players Championship and the FedEx Cup Playoffs, so LIV can free ride off the tour and its platform,” the PGA Tour said in its counterclaim.The PGA Tour, which declined to comment on Thursday, asked for a trial by jury, which was set for January 2024. The tour also seeks damages for any lost profits, “damages to reputational and brand harm” and other legal costs.In a statement on Thursday, LIV said the PGA Tour “has made these counterclaims in a transparent effort to divert attention from their anti-competitive conduct, which LIV and the players detail in their 104-page complaint.”A Quick Guide to the LIV Golf SeriesCard 1 of 6A new series. More

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      PGA Tour Can Bar LIV Golfers From Playoff, Judge Rules

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      The narrow ruling came less than 48 hours before the start of the FedEx Cup playoffs in Memphis, but the broader turmoil could last for years.A federal judge on Tuesday rebuffed an effort by three LIV Golf players to compete in this week’s FedEx Cup playoffs, giving the PGA Tour interim support as it faces an uprising over the invitational series financed by Saudi Arabia’s sovereign wealth fund.The decision was an early, if narrowly tailored, victory for the PGA Tour’s efforts to undercut LIV Golf, which has spent recent months draining the more established tour of some of the star power it relies on to draw fans, television money and sponsorships.Although 11 players, including the major champions Phil Mickelson and Bryson DeChambeau, sued the Tour last week over its decision to bar them from its competitions, only three — Talor Gooch, Matt Jones and Hudson Swafford — asked Judge Beth Labson Freeman of the U.S. District Court for the Northern District of California to order that they be allowed to compete in the playoffs, which will begin on Thursday at T.P.C. Southwind in Memphis.Judge Freeman, near the end of a Tuesday afternoon hearing in San Jose, Calif., said that she did not believe the players would suffer “irreparable harm” if they were not allowed to play, a vital legal standard to secure a temporary restraining order.The players’ guaranteed-pay contracts with LIV Golf, she said, made it likely that they would “be earning more than they have made and could reasonably have expected to make in a reasonable period of time” with the PGA Tour.Moreover, she said, the arrangements between LIV Golf and the players had been negotiated with the potential loss of PGA Tour compensation in mind.Gooch, Jones and Swafford have combined for more than $37 million in career earnings, according to PGA Tour data.But the players, in a court filing last week and in San Jose on Tuesday, argued that the PGA Tour had defied its internal rules to exclude them from an event that leads to one of golf’s most lucrative paydays. The playoffs, scheduled to conclude late this month, can also clear the way for a player’s participation in men’s golf’s major tournaments: the British Open, the Masters Tournament, the U.S. Open and the P.G.A. Championship.“Large bonuses, big purses, substantial retirement plan payments, sponsorship, branding, and important business opportunities are at stake,” lawyers for the players wrote in a motion. The PGA Tour’s suite of tactics against LIV Golf and its players, they asserted, “are obviously anticompetitive, as they serve no purpose but to thwart competition and maintain its monopsony.”The PGA Tour, in a filing on Monday that condemned LIV as “a strategy by the Saudi government to use sports in an effort to improve its reputation for human rights abuses and other atrocities,” insisted that “antitrust laws do not allow plaintiffs to have their cake and eat it too.”LIV golfers, the filing suggested, could not expect to cycle between LIV events and PGA Tour competitions and break “contracts without consequence.”Besides, PGA Tour officials asserted, the players waited until the playoffs’ start was imminent to bring a legal challenge, effectively conjuring an emergency for Judge Freeman to consider.“Their ineligibility for Tour events was foreseeable when they accepted millions from LIV to breach their agreements with the Tour, and they knew for a fact that they were suspended on June 9,” the PGA Tour wrote, adding that other players who qualified for the playoffs and joined the lawsuit had not challenged their exclusions. (A lawyer for the players, Robert C. Walters, told Judge Freeman on Tuesday that the nature of the suspensions became clear only last week.)Tuesday’s ruling was an early one in the turmoil that could shadow golf for years, in part because the litigation could prove protracted. Away from the courthouse, LIV has announced plans to expand to 14 events in 2023, up from eight this year. It has also said it will offer $405 million in purses next year, compared with $255 million this year, for events expected to include such players as Dustin Johnson, Sergio García and Brooks Koepka.The players suing the PGA Tour include Phil Mickelson, who played last month in the LIV event at Trump National Golf Club Bedminster, a New Jersey course owned by former President Donald J. Trump.Doug Mills/The New York TimesThe PGA Tour, determined to preserve its standing as the pre-eminent circuit for professional male golfers, has suspended defectors, and some organizers of the major tournaments have signaled that they could try to keep LIV players out of their 2023 fields. The PGA Tour’s efforts have led to scrutiny: The Justice Department has been exploring whether the strategies ran afoul of federal antitrust laws, a particularly sensitive subject for professional and collegiate sports organizers in the United States.Even as LIV has attracted some of golf’s best-known figures, the PGA Tour has maintained a reservoir of support among elite players. Tiger Woods criticized LIV on the eve of last month’s British Open, where organizers made plain that Greg Norman, the LIV chief executive and a two-time Open champion, was unwelcome. Rory McIlroy and Justin Thomas, who have a combined six major titles, have also been among the most forceful Tour loyalists.Norman told Fox News Channel this summer that LIV had offered Woods “in the neighborhood” of $700 million to $800 million if he joined the series.Gooch, Jones and Swafford command far less attention. Gooch, ranked 20th in the playoff standings, finished in a tie for 34th at the British Open in July, but his career-best showing in a major was a tie for 14th.This year’s Masters marked the first time Swafford, 67th in the playoff standings, survived the cut at a major. Jones, 65th in the playoff rankings, missed weekend play at the only major he contested in 2022, the P.G.A. Championship.The men have not qualified for next year’s majors. When the players asked Judge Freeman to intervene, their lawyers said that keeping them from the playoffs would likely doom their chances of competing in those tournaments, starting with the Masters in April.In a statement on Tuesday, LIV Golf said it was “disappointed” by the judge’s ruling.“No one gains by banning golfers from playing,” the statement said. More

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      Mickelson and Other LIV Golfers File Antitrust Suit Against PGA Tour

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      A complaint filed on behalf of 11 players pushed back against the punishments imposed by the PGA Tour for players who participate in events sponsored by the upstart LIV series.Eleven golfers affiliated with the breakaway LIV Golf series have filed an antitrust lawsuit against the PGA Tour, challenging its suspensions and other restrictive measures used to punish those who signed on to play in the Saudi-backed LIV events.The lawsuit, filed Wednesday in the U.S. District Court for the Northern District of California, argues that the PGA Tour is unfairly controlling players with anticompetitive restraints to protect its longstanding monopoly on professional golf.The complaint — filed on behalf of Phil Mickelson and others — alleges that the tour had “ventured to harm” their careers and livelihoods. “The Tour’s unlawful strategy has been both harmful to the players and successful in threatening LIV Golf’s otherwise-promising launch,” it said.The players Talor Gooch, Hudson Swafford and Matt Jones also sought an order to allow them to participate in the FedEx Cup playoffs, the PGA Tour’s season-ending championship events. “The punishment that would accrue to these players from not being able to play in the FedEx Cup Playoffs is substantial and irreparable, and a temporary restraining order is needed to prevent the irreparable harm that would ensue were they not to be able to participate,” the complaint said.A Quick Guide to the LIV Golf SeriesCard 1 of 6A new series. More