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    Pressured by U.S., PGA Tour and Saudi Fund Drop Key Part of Golf Deal

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    The two parties had promised not to poach each other’s players. Their decision to abandon that clause removes one of the few binding provisions of the agreement that has rocked golf.The PGA Tour and Saudi Arabia’s sovereign wealth fund, facing pressure from the Justice Department about their ambitions for a new company to shape global golf, have in recent days abandoned a crucial provision of their tentative deal: a promise not to recruit each other’s players.The decision — and the Justice Department’s choice to raise concerns so early in a review that could lead to a government attempt to block the transaction — reflected the fragility, uncertainty and turbulence surrounding the deal.The framework agreement between the tour and the wealth fund included few binding provisions. But one of them was a nonsolicitation clause, which said the tour and wealth fund-backed LIV Golf league would not “enter into any contract, agreement or understanding with” any “players who are members of the other’s tour or organization.”The agreement also said the tour and LIV would not “solicit” or “recruit” players away from each other.Before the deal, LIV used norm-shattering prize funds and guaranteed contracts — some deals promised golfers at least $100 million — to entice some of the world’s top players away from the PGA Tour, which had spent decades as the premier, and largely unchallenged, circuit in men’s professional golf.Dustin Johnson, Brooks Koepka, Phil Mickelson and Cameron Smith were among the players who ultimately joined LIV, depriving the PGA Tour of some of the star power on which it had relied to draw fans and sponsors.The nonsolicitation clause was a short-term way to stop the exodus while the tour and the wealth fund negotiated the final terms for their new company, which would bring the golf business ventures of the PGA Tour, the wealth fund and the DP World Tour, formerly the European Tour, into a single entity.“My fear is if we don’t get to an agreement, they were already putting billions of dollars into golf,” James J. Dunne, a PGA Tour board member, said of the Saudi sovereign wealth fund. Kenny Holston/The New York TimesAfter the text of the agreement emerged late last month, though, antitrust experts warned that the clause could run afoul of federal law because it threatened the integrity of the labor market and promised to stifle competition for players, who have long been independent contractors.In recent days, people familiar with the change said, the tour and the wealth fund decided to abandon the provision in hopes of staving off an extraordinary intervention by the Justice Department. Golf officials disagreed with the department’s misgivings but acquiesced nevertheless.The original language appeared “to be right in the field of vision that the Department of Justice has staked out for its no-poaching enforcement program,” said William E. Kovacic, a former Federal Trade Commission chairman.“They haven’t had a great deal of success in their criminal cases yet,” he said. “But they have said, as a matter of policy, we regard no-poaching agreements as being as being a serious offense worthy of criminal prosecution.”The Justice Department and the wealth fund declined to comment on Thursday. In a statement on Thursday afternoon, the tour said it “chose to remove specific language” from the initial pact after it engaged with the Justice Department.“While we believe the language is lawful, we also consider it unnecessary in the spirit of cooperation and because all parties are negotiating in good faith,” the tour said.The tour formally notified its board of the decision on Thursday, after The New York Times asked the tour to comment on its reporting. A person familiar with the tour’s internal deliberations said the circuit’s leaders had already planned to inform the board on Thursday.Turmoil has enveloped the deal, which has not closed, since it was announced on June 6. On Tuesday, a Senate subcommittee questioned a pair of PGA Tour leaders during a lengthy hearing, part of at least two unfolding congressional inquiries. Tour executives have depicted the framework deal, and the final accord they hope to strike eventually, as necessary.Without some kind of truce, they have said, the wealth fund would assuredly pour more resources into the fight, diminishing the tour one year after another.“My fear is if we don’t get to an agreement, they were already putting billions of dollars into golf,” James J. Dunne III, a tour board member, said of the wealth fund when he addressed lawmakers on Tuesday. “They have a management team wanting to destroy the tour. Even though you can say take five or six players a year, they have an unlimited horizon and an unlimited amount of money.”The reviews on Capitol Hill could lead to damaging public revelations. But Justice Department scrutiny is seen as the more likely path for the government to try to derail the deal, if it chooses to try.Regulators and antitrust scholars have been watching the tour’s public statements with interest, such as when Jay Monahan, the tour’s commissioner, said on June 6 that the deal would let the circuit “take the competitor off of the board.”“Those are sound bites that the Department of Justice would look at and say, ‘Is what occurred promoting competition, or is what occurred stifling competition insofar as an entity with a monopoly grip on the market has eliminated a competitor and solidified their grip on the market?’” said Gerald Maatman Jr., who chairs the workplace class-action group at the law firm Duane Morris.Not every binding provision of the framework agreement has caused such substantial alarm among antitrust regulators. The wealth fund and the tour, for instance, agreed to dismiss acrimonious litigation over their golf pursuits. And although Senator Richard Blumenthal, the Connecticut Democrat who is leading one of the Senate inquiries into the deal, expressed concern this week about a nondisparagement pledge included in the agreement, experts said that kind of restriction was unlikely to draw concern inside the Justice Department. More

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      Other Sports Faced Congress’s Glare. Now Golf Will Get Its Turn.

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      A Senate hearing on Tuesday is just one part of Washington’s scrutiny of the PGA Tour’s deal with Saudi Arabia’s sovereign wealth fund.Sports executives and players have sometimes defended themselves or patiently absorbed hours of fury. They have occasionally apologized or pleaded for help. They have shifted blame or used celebrity and childhood memory as a charm offensive. In other instances, they have lied or obfuscated or simply said little at all.PGA Tour leaders, who are expected to appear before a Senate subcommittee on Tuesday to discuss their circuit’s surprise alliance with Saudi Arabia’s sovereign wealth fund, have a menu of time- and pressure-tested options for facing a sports-curious Congress. The tactics they turn to will likely do much to influence whether Tuesday’s proceeding is a blip that leads to a day’s worth of headlines or a debacle that triggers far greater scrutiny.“The PGA would be smart to understand that they’re not calling them in to play patty-cake,” said J.C. Watts, who played quarterback at Oklahoma before representing a district in the state in Congress and, from 1999 to 2003, serving as a member of the Republican leadership in the House.“The constituents back home, they understand sports and they understand 9/11,” Watts added, referring to longstanding accusations that Saudi government operatives played a role in the 2001 attacks. “This is sports with a much deeper twist than your typical hearing.”That Congress, which has a long history of quizzing, hectoring and looming when it comes to sports, would step into golf’s fray felt like a certainty after the tour and the Saudi wealth fund announced a framework agreement on June 6. So far, that activity has taken the form of two Senate inquiries, a House bill to revoke the tour’s tax-exempt status, demands for the Justice Department and the Treasury Department to consider intervening and Tuesday’s hearing at the Senate’s Permanent Subcommittee on Investigations.The proceeding is the latest example of a congressional interest in sports that has led to a mixed record. Lawmakers and their investigators have unearthed information and sometimes provoked changes to the sports landscape, either through legislation or the grinding power of the congressional bully pulpit.“I think you’ve got to articulate your public policy purpose,” said Tom Davis, a former Republican congressman from Virginia who was instrumental in hearings nearly two decades ago about steroid use in baseball, which lawmakers depicted as a part of a national scourge. “That’s really what you’ve got to do. It can be a health thing, a tax equity thing, but you’ve got to articulate why Congress is involved, and it’s a high threshold.”Senator Richard Blumenthal of Connecticut said the “central” role that sports play in American society makes them especially important for Congress to scrutinize.Pete Marovich for The New York TimesA sports hearing, Davis warned, was “high-risk, high-reward, particularly at a time when Congress is not seen as productive.”Senator Richard Blumenthal, the Connecticut Democrat who is the subcommittee’s chairman, said sports’ “central” role in American society makes them especially important for Congress to scrutinize. The proposed Saudi role in golf, he signaled, was too much for Congress to ignore.“There really is a national interest in this cherished, iconic American institution, which is about to be taken over by one of the world’s most repressive governments,” he said in an interview.On Tuesday, the subcommittee will not hear from any of the three witnesses it originally sought. Jay Monahan, the PGA Tour commissioner, has been on medical leave for almost a month, though the tour said Friday that he would return next week. Yasir al-Rumayyan, the wealth fund’s governor, and Greg Norman, the commissioner of the Saudi-backed LIV Golf league, cited scheduling conflicts and declined to appear.“Suffice it to say, this hearing will certainly not be the last,” Blumenthal said. “We will have hearings after there is a final agreement, if appropriate, and there is a national interest in doing it.”After the tour announced Monahan’s planned return, a spokeswoman for Blumenthal, Maria McElwain, said that the subcommittee would be “following up with him regarding any remaining questions after Tuesday’s hearing.”Jay Monahan, the PGA Tour commissioner, will not appear before the Senate Committee to testify.Rob Carr/Getty ImagesBut the PGA Tour is hoping to avoid testifying after Tuesday, when Ron Price, its chief operating officer, will appear. Although Price did not negotiate the agreement announced last month, the tour board member who initiated the talks, James J. Dunne III, is also expected to testify.Price and Dunne may also be asked about the weekend resignation of Randall Stephenson from the tour’s board after more than a decade. In his resignation letter, Stephenson, the former chief executive of AT&T, cited “serious concerns with how this framework agreement came to fruition without board oversight.” He added that the deal was not one that he could “in good conscience support,” especially because American intelligence officials concluded that Saudi Arabia’s de facto ruler authorized the 2018 murder of the Washington Post columnist Jamal Khashoggi.“If you are not really nervous and anxious to make sure you are prepared, then you are probably not prepared,” said Travis Tygart, the chief executive of the U.S. Anti-Doping Agency, who has repeatedly testified before Congress. “It will, for sure, be the worst night of sleep that any witness is going to have.”Golf has scarcely been a topic of inquiry in congressional hearing rooms. The sport’s leaders have often handled their business in Washington behind closed doors, relying on a fount of good will and gentility. The tour faced a significant threat in the 1990s, when the Federal Trade Commission examined antitrust issues in golf before its inquiry fizzled amid a pressure campaign from Capitol Hill.Public appearances on the Hill have been more cheery. Arnold Palmer, for instance, addressed a joint meeting of Congress to pay tribute to Dwight D. Eisenhower, and Jack Nicklaus spoke to a House committee about character education.Other titans of professional sports have had less pleasant interactions in Washington. Lawmakers have examined everything from college football’s Bowl Championship Series (“It looks like a rigged deal,” President Biden, who was then a senator, said.) to sexual abuse, domestic violence and the N.F.L.’s investigation into the Washington Commanders.But baseball has drawn much of the attention from Congress, like when senators called a 1958 hearing on antitrust exemptions. (“Stengelese Is Baffling to Senators,” read a subsequent headline in The New York Times, which reported that Yankees Manager Casey Stengel had lawmakers “confused but laughing.”)Neither Greg Norman, left, the commissioner of the Saudi-backed LIV Golf league, nor Yasir al-Rumayyan, the wealth fund’s governor, will appear at the hearing Tuesday.Charles Rex Arbogast/Associated PressThe more recent proceedings about steroids in baseball featured a series of electrifying hearings, including one in 2005 when sluggers employed all manner of strategies during hostile questioning, and a 2008 spectacle that factored into the indictment of the celebrated pitcher Roger Clemens on charges of perjury, making false statements and obstruction of Congress. He was ultimately acquitted.For all of the commotion and skepticism, though, the cumulative pressure from Congress helped prod baseball into sweeping changes.The Senate subcommittee’s goals for golf are, for now, unclear.“What’s a win on this, outside of getting your mug on the news?” asked Davis, who, after leaving Congress, represented the former Commanders owner Daniel Snyder during a House inquiry. “Is it undoing this deal? Is it exposing some Saudi plot to come in and take over American golf?”The wealth fund has denied that it is using sports to try to repair the kingdom’s reputation as a human rights abuser and has instead asserted that it wants to diversify the Saudi economy and empower the country to play a greater global role. But the Saudi element could still help the Senate inquiry to develop staying power because it gives Congress something to explore beyond a seemingly mundane sports issue.“Usually when you’re taking about sports, you don’t have to talk about 9/11 families, you don’t have to talk about the Pentagon, you don’t have to talk about Flight 93,” Watts said. “In this case, the one opposition that rallies everybody is the Saudi money.”Blumenthal suggested in the interview that he expects Saudi Arabia’s history — in the interview, he accused the kingdom of being “actively complicit in terrorist activities, including 9/11” — to be a central theme of Tuesday’s proceeding and the unfolding inquiry.The panel cannot unilaterally block the deal from advancing, but members are well aware that a crush of revelations or damaging testimony could stir outrage and, perhaps more consequentially, nudge other parts of the federal government that could do more to stop the alliance.Tygart, the antidoping chief, recalled a meeting with a senator before a 2017 hearing, with the lawmaker making plain that he understood exactly how the event could shape public debate, even if it did not yield legislation.“I know,” Tygart remembered the senator telling him, “how much good can come out of witnesses sitting under the bright lights and squirming in their seats.” More

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      LIV Golf Resists Senate Request for Greg Norman’s Testimony on Saudi Deal

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      Less than two weeks before a planned hearing about a transaction that could reshape golf, lawmakers are struggling to assemble a witness list.The Capitol Hill meeting room has been booked, the senators’ calendars cleared. But less than two weeks before a Senate subcommittee wants to hold a hearing about the PGA Tour’s planned venture with Saudi Arabia’s sovereign wealth fund, the panel’s ambitions for high-profile witnesses are encountering significant resistance.There is almost no prospect that the wealth fund’s governor, Yasir al-Rumayyan, will voluntarily go before Congress, on July 11 or ever. The PGA Tour’s commissioner, Jay Monahan, is on medical leave. And LIV Golf, a Saudi-financed league, is balking at sending Greg Norman, who won two British Opens in the decades before he became the circuit’s commissioner and lightning rod, to speak to the Senate’s Permanent Subcommittee on Investigations.The dispute over witnesses, only weeks into the panel’s examination of the deal, suggests that the inquiry could be turbulent. Lawmakers are especially frustrated by LIV’s offer to send Gary Davidson, its acting chief operating officer, to the hearing instead of Norman.“We have requested testimony from Greg Norman, and unless there is a reasonable explanation for his absence — which we have not yet been provided — Greg Norman is who we expect to appear,” Maria McElwain, the communications director for Senator Richard Blumenthal, the Connecticut Democrat who chairs the subcommittee, said in a statement.LIV declined to comment on Friday, but a person familiar with the circuit’s thinking, who requested anonymity to discuss private negotiations with Congress, said the league believed that Davidson was more steeped in its day-to-day operations and the potential ramifications of the deal that has rocked golf since it was announced on June 6. Norman and Davidson were not involved in the secret talks that led to the deal.Under the structure envisioned in a five-page framework agreement signed behind closed doors on May 30, the business operations of the PGA Tour, LIV and the European Tour, known as the DP World Tour — such as television rights and sponsorships — would be brought into a new for-profit company. The plan calls for the PGA Tour to control a majority of the board’s seats, for Monahan to be the company’s chief executive, and for the tour to maintain authority over many professional golf tournaments.But Saudi Arabia’s wealth fund would have extensive investment rights, and al-Rumayyan is positioned to become the company’s chairman, assuring the Saudis of significant sway over men’s professional golf if the deal closes.The planned venture has drawn weeks of scorn and skepticism from Washington, where lawmakers have fumed over Saudi Arabia’s human rights record, much as the tour did before it looked to go into business with the wealth fund. Some lawmakers have threatened to strip the tour of its tax-exempt status, and the Justice Department’s antitrust regulators could spend months scrutinizing the deal before deciding whether they will try to block it.And, hewing to the congressional pastime of publicly haranguing sports executives over issues such as steroids and the rights of college athletes, the Senate quickly scheduled a hearing to examine the deal, even though the most substantial details, like the valuations of assets, may not be resolved for months.In letters last week, though, Blumenthal and Ron Johnson, a senator from Wisconsin who is the senior Republican on the subcommittee, invited Norman, Monahan and al-Rumayyan to appear and be prepared to “discuss the circumstances and terms” of the agreement, as well as “the anticipated role” of the wealth fund in professional golf in the United States.LIV Golf chief operating officer Gary Davidson, right, talks with the Australian golfer Wade Ormsby at a LIV event earlier this year.Scott Taetsch/LIV Golf/LIVGO, via Associated PressThe senators, who have not subpoenaed any executives, had hoped to firm up the witness list by the middle of this week, but on Friday their panel was still bargaining with the tour, the wealth fund and LIV.The hearing, if it happens, will be among the most significant opportunities to date for golf executives to ease concerns about the planned transaction. But the proceeding, like any appearance before Congress, carries risks. A single misstep could intensify the public firestorm or, perhaps more troublingly for the deal’s supporters, encourage government officials to take an even more exacting look at the pact. (Antitrust experts, for instance, have predicted that Monahan’s assertion on June 6 that the deal will “take the competitor off of the board” will intensify the Justice Department’s scrutiny.)Norman, in particular, has a history of drawing criticism. Last year, for instance, he played down Saudi responsibility for the murder of the Washington Post columnist Jamal Khashoggi, saying, “Look, we’ve all made mistakes.” In recent months, he has made relatively few public comments, and he and his representatives have declined interview requests from The New York Times.But when Blumenthal and Johnson wrote to him on June 21, they said the subcommittee “respectfully requests that you appear in-person to testify.” LIV executives said Norman would be traveling abroad at the time, and they privately objected to the commissioner being subjected to congressional inquiry without his PGA Tour counterpart enduring the same scrutiny, which seems likely given Monahan’s medical leave.Monahan’s indefinite absence has complicated the tour’s representation at the hearing. The two executives named to lead the tour on an interim basis, Tyler Dennis and Ron Price, were not involved in the deal talks.Al-Rumayyan, however, was. But his appearance on Capitol Hill was never considered probable. One of Saudi Arabia’s most influential figures, he rarely gives interviews outside of tightly controlled settings, and lawyers representing him and the Saudi government waged an aggressive fight to keep him from being deposed in golf-related litigation in the United States. (The litigation was dropped as a part of the tentative deal — one of the few binding components of the framework agreement — and al-Rumayyan never gave sworn testimony.)The wealth fund declined to comment on Friday. The tour, in a statement, said it was “cooperating with the subcommittee’s requests for information and having productive conversations with them about who will represent the PGA Tour on July 11th.”It added, “We look forward to answering their questions about the framework agreement that keeps the PGA Tour as the leader of professional golf’s future and benefits our players, our fans and our sport.”The wealth fund and the tour are deploying armies of lobbyists, lawyers and political fixers to try to smooth the deal’s path. Before going on leave to recuperate from a “medical situation” that the tour has declined to describe, Monahan wrote to lawmakers to defend the agreement. He also complained that Congress had not given the tour enough support to withstand a Saudi “attempt to take over the game of golf in the United States,” as he put it.“We were largely left on our own to fend off the attacks, ostensibly due to the United States’ complex geopolitical alliance with the Kingdom of Saudi Arabia,” Monahan wrote.It is not clear whether the Senate panel will escalate its efforts to secure testimony from Norman, or any of the other witnesses they requested, especially before the July 11 hearing. Most lawmakers are away from Washington for the Senate’s Independence Day break, and few are expected to return to Capitol Hill until the week of the hearing.The hearing’s current timing, though, could be fortuitous for golf leaders. Public attention will turn the following week to the British Open, which will be played at Royal Liverpool. Cameron Smith, who joined LIV not long after his victory last July on the Old Course at St. Andrews, will try to defend his title at golf’s last major tournament of the year. More

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      PGA Tour and LIV Golf Seek to Drop Litigation Against Each Other

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      Although the tour’s deal with the Saudi wealth fund has not closed, the request to a federal judge was a milestone in golf’s surprise détente.The PGA Tour, LIV Golf and Saudi Arabia’s sovereign wealth fund asked a federal judge in California on Friday to dismiss the litigation that catapulted golf’s economic and power structure into the American court system.The request to dismiss the case with prejudice, meaning that it cannot be refiled, came less than two weeks after the tour and the wealth fund, which bankrolled LIV, announced a tentative agreement to form a partnership. Although the deal may not close for months and faces mounting scrutiny in Washington, Friday’s submission in Federal District Court in San Jose, Calif., was a milestone in the abrupt détente between the rival circuits.Judge Beth Labson Freeman, who has been overseeing the case, is expected to approve the request, a cornerstone of the tentative agreement between the tour and the wealth fund. By abandoning the litigation, LIV, the PGA Tour and the wealth fund are limiting the potential for damaging revelations and surging legal bills, as well as closing off one avenue for recourse if the new alliance falls apart.Justice Department officials, who were already conducting an antitrust inquiry into men’s professional golf, are expected to review the deal closely and could even try to block it or compel changes to it. At least two Senate panels are demanding information about the planned transaction and its consequences, and the deal has not even secured the approval of the PGA Tour’s board.Much about the agreement itself also remains in flux, including the valuations of the assets of the tour, LIV and the DP World Tour, formerly the European Tour, that are to be housed inside the new for-profit venture. The tour’s commissioner, Jay Monahan, is expected to serve as the company’s chief executive, and Yasir al-Rumayyan, the wealth fund’s governor, is poised to be its chairman. The PGA Tour expects to hold a majority of the seats on the new company’s board, but the wealth fund will have extensive power over how it is bankrolled, assuring the Saudis of significant influence.Until June 6, when the deal was announced, the PGA Tour had warned against allowing Saudi money and influence to take hold in golf, fueling California litigation that had a costly, complicated life.The acrimonious proceedings began last August, when 11 LIV players, including the major tournament champions Phil Mickelson and Bryson DeChambeau, brought a lawsuit that accused the tour of violating antitrust laws. LIV itself joined the case later that month.The tour also pursued its own claims against LIV, which it said had improperly interfered with existing contracts with players. The tour later received Judge Freeman’s approval to expand its case to include the wealth fund itself and al-Rumayyan, just one of the rulings that placed pressure on the Saudis and their allies, whose superior financial resources put the tour under immense strain.The tour, the wealth fund and LIV waged a ferocious battle over evidence collection in the case, and many filings in the case were redacted, but a federal magistrate judge concluded this year that the wealth fund was “the moving force behind the founding, funding, oversight and operation of LIV,” undercutting its contention that it was a passive investor in golf.A trial had not been expected until at least next year.Hours before Friday’s filing from the tour and LIV, The New York Times filed a motion that asked the court to unseal records in the case. The Times cited a “substantial and legitimate public interest in these proceedings and their outcome” and suggested that the planned partnership could make concerns of competitive harm moot.“To the extent that competitive harm existed at the time of sealing, those justifications may not apply with the same force today — or upon completion of the parties’ anticipated merger,” The Times’s filing said. “Sealing is a decision that can and should be revisited as facts change and circumstances require.”It was not clear when the judge would rule on either of Friday’s motions. More

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      The Titanic PGA and LIV Golf Deal Stokes Anger on Capitol Hill

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      American lawmakers and officials are studying the pact between the PGA Tour and Saudi Arabia’s sovereign wealth fund.One of golf’s greatest tests will unfold starting on Thursday, when the U.S. Open begins at the Los Angeles Country Club. It might be an easier lift — it will assuredly be a shorter one — than the test that is emerging in Washington.The abrupt announcement last week that the PGA Tour will tie itself to Saudi Arabia’s sovereign wealth fund and its LIV Golf league is provoking American officials in ways as predictable as they might be persistent in the months ahead.Antitrust experts are insisting that the Justice Department should consider suing to stop the agreement, which calls for the business operations of LIV and the PGA Tour to be brought into one new company, if the deal closes in the coming months. Lawmakers are complaining that the Florida-based PGA Tour is lurching into business with an arm of the Saudi state that it roundly condemned until last week. Political strategists are scrambling to shape perceptions of an agreement that was forged in secret and, upon its release, promptly criticized as a well-heeled exercise in hypocrisy and whitewashing.Whether the commotion will amount to anything beyond a few news cycles of fussing — a successful assault on the PGA Tour’s tax-exempt status comes to mind — may not be clear for months. But a week into golf’s latest maelstrom, a deal that could eventually prove lucrative for players and executives is already promising a booming era for lawyers, lobbyists and political sound bites, too.Although golf had been under pressure inside the Justice Department, where antitrust regulators were looking at the PGA Tour, the announcement last week brought the tumult to Capitol Hill.In the House, Representative John Garamendi, Democrat of California, swiftly introduced a bill to revoke the PGA Tour’s tax-exempt status. And in the Senate, Senator Richard Blumenthal, Democrat of Connecticut, announced on Monday that a subcommittee he chairs would conduct an inquiry into a deal that he said “raises concerns about the Saudi government’s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution.”At the U.S. Open in Los Angeles this week, PGA Tour golfers like Jon Rahm will be playing with men like Sergio Garcia, who defected to LIV last year.Richard Heathcote/Getty ImagesThat there would be a battle was never much in question. The principal short-term matter to resolve was who, exactly, would be picking which fights.The golf side of the battle features two forces with formidable records across decades in Washington. Even though Saudi Arabia has had plenty of bipartisan tangles, the kingdom’s officials and allies have often enjoyed an uncommon rapport with their American counterparts, as was on display during a visit from Secretary of State Antony J. Blinken last week. And the PGA Tour has usually found the capital to be a wellspring of courtesy, especially when its supporters helped short-circuit a Federal Trade Commission inquiry in the 1990s.The trouble for the wealth fund and the tour is that Washington also has a bipartisan affection for lawmakers imitating sports executives, and browbeating actual ones, in public and in private. It can be good politics to glower at the commissioners who draw more jeers than many elected officials, and headline-making hostility from Congress could complicate the golf industry’s quest to sell the deal to the public — and then move past it.The tour and the wealth fund can take some comfort in history, which suggests a successful congressional effort to thwart the deal directly is unlikely. The Hill, though, could still seek to make the transaction painful beyond a feisty public hearing or two. A change to the tour’s tax status, like the one envisioned in the bill introduced in the House, could cost it millions of dollars a year because it has been structured as a “business league” that is exempt from taxes under section 501(c)(6) of the Internal Revenue Code.Groups like the PGA Tour have combated legislative headaches surrounding their tax-exempt status in the past, with one effort to end the practice for sports leagues vanishing from a 2017 tax bill at the last moment. In the past 18 months, years after the N.F.L. and Major League Baseball surrendered their exempt statuses, public records show that the tour has spent at least $640,000 on lobbying, with much of that work tied to “tax legislation affecting exempt organizations.”As a part of his inquiry, Blumenthal on Monday demanded documents related to the tour’s tax-exempt status and, in his letter to the tour, wondered whether the deal would allow a foreign government to “indirectly benefit from provisions in U.S. tax laws meant to promote not-for-profit business associations.”Senator Ron Wyden, Democrat of Oregon, who is chairman of the Senate Finance Committee, similarly seethed that the tour had “moved itself right to the top of the leaderboard in terms of most questionable tax exemptions in professional sports.”But Wyden has also suggested that the deal should run into resistance before the Committee on Foreign Investment in the United States, a Treasury Department-led committee that examines national security implications of foreign investments in real estate and American companies.Whether there are serious national security concerns about a deal involving golf tours, or whether the committee will even review the agreement at all, is unclear. Janet Yellen, the secretary of the Treasury, said last week that it was “not immediately obvious” to her that the agreement related to national security. But Wyden, who is planning a congressional investigation of his own, has signaled his interest in the department’s exploring whether the deal could give “the Saudi regime inappropriate control or access to U.S. real estate,” most likely through the tour’s Tournament Players Club collection of golf courses.And those are just the spats that have erupted since last Tuesday.The PGA Tour commissioner, Jay Monahan, left, and Jimmy Dunne, a board member, were closely involved in the merger negotiations.Getty ImagesUrged on by LIV’s lawyers, Justice Department regulators have spent months examining whether the PGA Tour’s tactics to discourage players from defecting to the Saudi-backed league were illegal, and whether the tour’s coziness with other leading golf organizations — like Augusta National Golf Club, the organizer of the Masters Tournament — violated federal law. Instead of quieting misgivings about golf, the deal has only intensified them and might have even armed the department with a new lever: suing to stop the pact, which the tour and wealth fund deny amounts to a merger.“Generally, we want to encourage parties to settle their disputes outside of the judicial process, but it doesn’t mean that settlements are immune from antitrust,” said Henry J. Hauser, a former antitrust lawyer at the Justice Department who now practices at Perkins Coie, one of the capital’s best-connected firms. “If companies try to resolve a legitimate dispute by agreeing to common conditions that stifle competition, that could be a problem.”The Justice Department has declined to comment.The tour is moving aggressively to curb Washington’s irritation, going as far to suggest that Congress and other parts of the federal government could have done more to help it rebuff a Saudi challenge.“While we are grateful for the written declarations of support we received from certain members, we were largely left on our own to fend off the attacks, ostensibly due to the United States’ complex geopolitical alliance with the Kingdom of Saudi Arabia,” the PGA Tour commissioner, Jay Monahan, wrote in a letter to lawmakers last week. “This left the very real prospect of another decade of expensive and distracting litigation and the PGA Tour’s long-term existence under threat.”In the penultimate sentence of his letter, Monahan described the tour as “an American institution,” just as Blumenthal would on Monday. But like many executives before him, Monahan is finding that Washington is forever eager to scrutinize American institutions, especially when sports are involved.He may ultimately find that the shouting has only just begun.Lauren Hirsch More

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      Senate Opens Inquiry Into PGA Tour Deal with Saudi-Funded LIV Golf

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      The PGA Tour and LIV have been asked to provide documents and communications tied to the agreement announced last week.The PGA Tour and LIV Golf have not yet closed a stunning partnership agreement announced only last week, but vows from Washington to slow or stop the deal — or at least make it uncomfortable for golf executives — crystallized on Monday, when the Senate opened an inquiry into the arrangement.Senator Richard Blumenthal, Democrat of Connecticut and the chairman of the chamber’s Permanent Subcommittee on Investigations, said Monday that he had demanded that both the PGA Tour and the Saudi Arabian-funded LIV give up a wide array of documents and communications tied to the agreement. Blumenthal also asked for records related to the PGA Tour’s nonprofit status, suggesting an appetite to challenge the tour’s tax-exempt standing.In a statement issued three days before the start of the U.S. Open in Los Angeles, Blumenthal decried Saudi Arabia’s “deeply disturbing human rights record at home and abroad” and said the agreement raised concerns “about the Saudi government’s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution.”LIV declined to comment on Monday. In a statement on Monday afternoon, the PGA Tour said it was “confident that once Congress learns more about how the PGA Tour will control this new venture, they will understand the opportunities this will create for our players, our communities and our sport, all while protecting an American golf institution.”Congress cannot block the agreement simply by opening an investigation, and any legislation to derail the deal would almost certainly provoke a court challenge. But congressional scrutiny and, perhaps, public hearings could tarnish the deal and make the months ahead even more unpleasant for the leaders of professional golf.Blumenthal has shown a willingness to spar with sports executives. Lately, he has pressed American universities for information about their sports betting partnerships, and he has lashed the N.C.A.A. leadership for years over conditions for college athletes.Although the planned deal has caused some heartburn and saber-rattling on Capitol Hill, Congress has not shown unanimous interest in haranguing golf leaders over it. Senator Ron Johnson, the Wisconsin Republican who is the ranking minority member on the panel that Blumenthal chairs, said last week that Congress should stay out of sports.The PGA Tour’s agreement with the Saudi Public Investment Fund, whose LIV circuit made its debut last year, would bring the business dealings of the rival tours into a new company. The PGA Tour commissioner, Jay Monahan, is in line to serve as its chief executive, and Yasir al-Rumayyan, the wealth fund’s governor, will be its chairman.Under the terms of the agreement, the Saudi wealth fund will have exclusive rights to invest in the new company, positioning it for significant influence over golf’s financial future. PGA Tour officials have insisted, to widespread doubts, that they will be the ultimate decision makers because their allies will hold a majority of the new company’s board seats.Professional golf attracted the gaze of Washington regulators before last week’s announcement. Antitrust investigators from the Justice Department have spent months asking questions about the tour’s efforts to deter player defections to LIV and examining whether the tour’s top leaders were too close to other prominent golf organizations, like Augusta National Golf Club, the organizer of the Masters Tournament.The department has brought no public allegations of wrongdoing and has not commented on last week’s announcement of a deal. But antitrust experts have warned that the department is virtually certain to study it closely and may even step in to try to block it.Tour executives have expressed confidence that the agreement will withstand any legal challenges. More

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      It’s a Long Leap From Sports Team Owner to U.S. Senator

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      Alex Lasry, son of a majority owner of the Milwaukee Bucks, learned there’s a difference between making fans happy and appealing to voters.MILWAUKEE — When Alex Lasry dropped out of the Democratic primary for Senate in Wisconsin on Wednesday, he said “there was no path to victory,” something no owner of a sports franchise ever wants to admit. He said he had concluded he could not beat Lt. Gov. Mandela Barnes and urged voters to rally behind Barnes to defeat the Republican incumbent, Senator Ron Johnson, in November.Lasry, 35, is a son of a billionaire owner of the Milwaukee Bucks, and has an ownership stake of his own valued at more than $50 million. He made the team, the 2021 N.B.A. champion, the centerpiece of his campaign by playing up the work he had done as a Bucks executive to help build Fiserv Forum and deliver higher wages to union workers. He frequently donned Bucks quarter zips, vests and other gear. He even traveled around the state with the N.B.A. trophy, drawing criticism for using it as a campaign prop.There are plenty of former athletes and coaches who have made the jump from the playing field or the sideline to Capitol Hill: Bill Bradley, J.C. Watts, Tom Osborne and, more recently, Tommy Tuberville.But it is much less common for the owners of sports franchises, whose faces are not so familiar, to inspire the same level of electoral fandom.Lasry’s wife, Lauren, held their daughter, Eleanor, as he spoke with a fairgoer. A native of Manhattan, he moved to Milwaukee in 2014 to work as a Bucks executive.Sara Stathas for The New York TimesSome owners have had a hard time keeping sports out of the conversation. During his unsuccessful Republican primary campaign for Senate in Ohio, Matt Dolan, whose family owns the Cleveland Guardians, was lambasted by former President Donald J. Trump over the team’s decision to change its name from the Indians, which Trump mocked as a sop to the politically correct.And in Georgia, Kelly Loeffler attacked the Black Lives Matter movement, so incensing members of the W.N.B.A. team she owned at the time, the Atlanta Dream, that they campaigned against her. She lost her Senate seat to Raphael Warnock, whose 2022 opponent is Herschel Walker, the former N.F.L. running back.Senator Herb Kohl of Wisconsin, a previous owner of the Bucks, was a rare team owner who made it to Washington. But he was already a known quantity through his family’s grocery and department stores and as chair of the state Democratic Party.“Herb Kohl put in the legwork,” said State Senator Chris Larson, a Milwaukee County Democrat who dropped out of the primary last August and endorsed Barnes. “Lasry and his family were just trying to come in and buy that.”Alex Lasry grew up in Manhattan as a son of Marc Lasry, a hedge fund manager and Democratic fund-raiser. A star point guard for his high school team who continues to play pickup basketball regularly, Alex Lasry moved to Milwaukee in 2014, after his father was part of a group that purchased the Bucks that year from Kohl for $550 million.Marc Lasry, center, celebrated after the Milwaukee Bucks defeated the Phoenix Suns to win the 2021 N.B.A. championship at Fiserv Forum.Jonathan Daniel/Getty ImagesWhen he began his Senate candidacy in February 2021, Alex Lasry had to overcome skepticism that his résumé was light on accomplishments and heavy on nepotism. By late June, he had surged to a clear second in a crowded field of longtime politicians, according to a Marquette Law School survey. He had also lined up an impressive roster of supporters — including Cavalier Johnson, the mayor of Milwaukee — as well as labor leaders who credited him with being a strong community presence.“I find him very easy to talk to, very down to earth,” said Daniel Bukiewicz, president of the Milwaukee Building & Construction Trades Council.Lasry largely self-funded his campaign, pouring $12.3 million into it even though he initially said he would depend on grass-roots support. In the second quarter of 2022, his campaign spent $6.7 million — or more than his Democratic rivals combined.He also had some notable donors from the sports world, like Jerry Reinsdorf and Michael Reinsdorf of the Chicago Bulls, who were beaten by the Bucks in the playoffs this year, and Stephen Pagliuca and David Bonderman, owners of the Boston Celtics, the team that bounced the Bucks from the playoffs. Other contributors were Adam Silver, the N.B.A. commissioner; Jason Kidd, the Bucks coach when Lasry arrived in Milwaukee; Casey Close, a prominent sports agent; and Rachel Nichols, a former ESPN broadcaster.Alex Lasry, left, celebrated with Tom Perez, chairman of the Democratic National Committee, and Tom Barrett, mayor of Milwaukee, in March 2019 after the announcement that the Democratic National Convention would be held at Fiserv Forum. Mark Hoffman/Milwaukee Journal-Sentinel, via Associated PressOn his Senate disclosure form, filed in August 2021, Lasry listed $100 million to $273 million in assets. One investment was his partnership in Sazes Partners, a family holding company, records show.Through Sazes, Lasry reported owning $5 million to $25 million of Sessa Capital, a private equity fund. John Petry, the founder of Sessa Capital, has played in charity poker tournaments with Marc Lasry to benefit Education Reform Now, a nonprofit advocacy group.The Lasry family’s ties to Sazes did not become public before he quit the race, but they might have caused a stir if they had. Sessa is the fourth-biggest shareholder in Chemours, a manufacturer of PFAS, which have been linked to cancer and are often called “forever chemicals” because they don’t break down in water. Chemours is among the companies being sued for environmental contamination — including, last week, by Gov. Tony Evers and Attorney General Josh Kaul of Wisconsin.Asked last week about Lasry’s substantial family stake in a major Chemours shareholder, Christina Freundlich, a campaign spokeswoman, said that Lasry applauded the efforts of Evers and Kaul “holding any and all polluters accountable” and that he has urged Congress to establish PFAS regulations.No matter. By Wednesday it was game over. At a news conference in front of the Fiserv Forum, Barnes praised Lasry’s campaign, saying he departs without having made any new enemies.That’s a notable achievement for a politician or a sports owner.Kitty Bennett More

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      Elizabeth Williams of the Atlanta Dream Continues to Embrace Activism

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      #masthead-section-label, #masthead-bar-one { display: none }The Presidential TransitionliveLatest UpdatesHouse Moves to Remove TrumpHow Impeachment Might WorkBiden Focuses on CrisesCabinet PicksAdvertisementContinue reading the main storySupported byContinue reading the main storySPORTS OF THE TIMESFor Pro Athlete Leading Social Justice Push, a Victory and UncertaintyElizabeth Williams of the Atlanta Dream helped galvanize opposition to one of her team’s owners, Senator Kelly Loeffler, who has criticized Black Lives Matter. But the Capitol riot underscored the work ahead.Elizabeth Williams of the Atlanta Dream.Credit…Ned Dishman/NBAE, via Getty ImagesJan. 11, 2021, 3:00 a.m. ETThe challenge seemed simple and direct.Rebuke Senator Kelly Loeffler of Georgia for her race-baiting derision of Black Lives Matter. Help remove her from her post. Make her continued ownership stake of the Atlanta Dream feel increasingly unbearable.But the searing events of last week provided yet another reminder to the W.N.B.A. and its ubiquitous athlete activists that there is always more to be done.Nobody knows this better than the Dream’s Elizabeth Williams.Unless you are a serious fan of women’s basketball, you probably do not know of Williams. In an era in which athletes are taking star turns for speaking up for justice, she should be a household name.Once uneasy with making her feelings known, she found her voice amid the pain and protest of last summer. She ended up at the center of a unique moment in the annals of American sports: the mutiny by a group of professional players against their team’s prominent and powerful owner.Williams led the Dream’s decision to denounce Loeffler, who controls a 49 percent stake in the team.Then, in her role with the league’s union, she helped guide the move by W.N.B.A. players to endorse the Rev. Raphael Warnock — a political newcomer and decided underdog, as he bid to unseat Loeffler from the Senate.That race, of course, came down to a tense runoff vote. “Just because somebody owns the team, that doesn’t mean they own you, or own your voices,” Warnock said, days before the election, as he thanked the league for its stand.Where was Williams when Warnock beat Loeffler last week?In Turkey, where she has been playing in a women’s league since October — typical of the off-season, overseas grind W.N.B.A. players endure to boost earnings that are a pittance compared with their male colleagues’.She barely had time to savor Warnock’s victory when on Wednesday she watched in horror as a mob of Trump loyalists stormed the Capitol.“An act of terror,” she called it, as we spoke over the phone.“Seeing the faces of those people as they were in the Capitol, seeing their hubris, that’s what pained me,” she said. “They looked so confident that they were not going to face any consequences. That was a reminder of the systemic issues we face. The depth and complexity.”She continued: “For us in the W.N.B.A., it started with this election, but unfortunately, what happened in D.C. reminded us that there are still people out there who feel emboldened to stand against the ideals we believe in.”I could hear the irritation in her voice as she discussed the absence of a clampdown by law enforcement at the Capitol. In June, after the death of George Floyd, she attended a protest in downtown Atlanta. It was her first. Until that day, she had been hesitant to speak out about social justice. She tended to stand back, and let others do the talking.But the demonstration in Atlanta changed her. She recounted the stern and overwhelming police presence. She said she was not alone in having to gird against intimidation. The entire crowd felt wary.And yet she said she had never felt so strong, so connected to a cause. The march changed her. Standing back was no longer an option. Little did she know that days later, Loeffler would attempt to score political points by ripping a page from the Trump playbook and trying to pick a fight with Black athletes.The Presidential TransitionLatest UpdatesUpdated Jan. 11, 2021, 9:50 a.m. ETBiden will receive his second vaccine shot today.How a string of failures led to the attack on the Capitol.Citigroup, Goldman Sachs and others pause their political contributions.In a letter to the league commissioner, Cathy Engelbert, Loeffler denounced Black Lives Matter — which the W.N.B.A., in keeping with its history of activism, had embraced. Loeffler called B.L.M. a political movement and unspooled a string of false claims, including that it promotes “violence and destruction across the country.”To say that players in a league that is 70 percent Black did not take kindly to such words is putting it mildly.Williams sprang to action.Williams read a statement in the wake of Jacob Blake’s shooting in August when the W.N.B.A. elected not to play.Credit…Ned Dishman/NBAE, via Getty ImagesOnce the W.N.B.A. began its pandemic-shortened 2020 season in July, she brought her team together and helped write a sharp rebuke.“We would have been lost without Elizabeth,” Dream guard Blake Dietrick said. She praised Williams, a 6-foot-3 center and the team’s longest tenured player at age 27, for her steady wisdom and understated leadership. “Without her, I’m not sure we come up with such an eloquent, firm response.”When Jacob Blake was shot seven times in the back in August by a police officer in Kenosha, Wis., the team chose Williams to respond.Suddenly there she was, live on national television, hesitancy shed as she announced that her team and the league would protest by not playing, even if only for a few nights.“We all hurt for Jacob and his community,” she said, speaking to the camera. “We also have an opportunity to keep the focus on the issues and demand change.”She implored fans: “Don’t wait. If we wait, we don’t make change. It matters. Your voice matters. Your vote matters. Do all you can to demand that your leaders stop with the empty words and do something.”Fast forward to last week, and its vivid displays of American hope and American horror.Williams reeled at the developments from afar.The news that no charges would be filed against the officer who shot Blake.The restless, sleep-deprived election night on Tuesday.The predawn group text Williams received from Sue Bird, the 40-year-old Seattle Storm guard who has become a league sage.“Soooo we helped turn a Senate seat,” the text read.Warnock had won. Williams sat in her darkened bedroom, alone, beaming.A few hours later, news came that Georgia’s other Senate race was over: Jon Ossoff had defeated the incumbent, David Perdue, a Republican, tipping control in Washington toward the Democrats.Not long afterward, Williams found herself on her phone again. Only this time, she was doomscrolling through video clips of chaos in Washington.She is the only American on her Turkish team. Few ask about her activism. But an inquiring teammate saw Williams’s sadness and had questions.“This is the United States Capitol?” the teammate asked, in halting English. “Where is the security?”Williams had no good answers, only strong emotions. Anger at the strife in America. Embarrassment. And more than anything, a firm resolve to continue speaking out.“I see it as my duty,” she told me, “to help keep up the fight.”AdvertisementContinue reading the main story More