The PGA-LIV Deal: Implications for the Future of Golf and Saudi Arabia’s Influence in the United States (U.S. Senate Committee on Homeland Security and Governmental Affairs, Permanent Subcommittee on Investigations)

Hearing	The PGA-LIV Deal: Implications for the Future of Golf and Saudi Arabia’s Influence in the United States
Committee	U.S. Senate Committee on Homeland Security and Governmental Affairs, Permanent Subcommittee on Investigations
Date	July 13, 2023

 

Hearing Takeaways:

• The PGA Tour’s Proposed Framework Agreement with LIV Golf: The hearing focused on the PGA Tour’s recently announced framework agreement with LIV Golf to cooperate on managing professional golf. In June 2023, the PGA Tour and LIV Golf announced that they had reached a framework agreement that involved the settling of their litigation and a commitment to pursuing a new joint-entity to govern professional golf. According to the hearing’s witnesses, the PGA Tour would have control over this new entity (both in terms of its operations and board of directors) and that Saudi Arabia’s Public Investment Fund (PIF) would make an investment in the new entity and have representation on the new entity’s board of directors. Subcommittee Chairman Richard Blumenthal (D-CT) expressed concerns over the deal given how Saudi Arabia (through its PIF) is the primary backer of LIV Golf. He raised concerns that Saudi Arabia is seeking to gain influence within the sport of golf to increase their global influence and deflect attention from their unsavory activities (including their human rights abuses and involvement in the 9/11 attacks). Subcommittee Ranking Member Ron Johnson (R-WI) and the hearing’s witnesses argued however that the PGA Tour could not continue to economically compete with LIV Golf and that this deal was necessary to preserve the PGA Tour’s viability. Subcommittee Ranking Member Johnson, Sen. Roger Marshall (R-KS), and Mr. Dunne further expressed concerns that Congress’s public scrutiny regarding the proposed deal would make it more challenging for the PGA Tour to reach a final agreement with LIV Golf.
  • Continued Viability of the PGA Tour Absent a Deal with LIV Golf: Subcommittee Members and the hearing’s witnesses argued that the PGA Tour faced major economic disadvantages when competing with LIV Golf, which is backed by PIF. They highlighted how PIF has significantly more money than the PGA Tour and how PIF was demonstrating a willingness to continue spending money on LIV Golf without expectation for an economic return. They noted how PIF’s spending on LIV Golf had enabled LIV Golf to poach many of the PGA Tour’s top golfers, which had damaged the interest in the PGA Tour. They stated that LIV Golf’s continued poaching of the PGA Tour’s top golfers would have eventually led the PGA Tour to no longer be competitive with LIV Golf. Subcommittee Chairman Blumenthal criticized the PGA Tour however for its decision to settle its litigation with LIV Golf after having experienced legal victories. He also criticized the PGA Tour for not pursing alternative investment options that would have enabled the PGA Tour to continue competing with LIV Golf. Subcommittee Ranking Member Johnson and the hearing’s witnesses stated however that the PGA Tour was not guaranteed to win its litigation against LIV Golf and could not afford to continue this litigation indefinitely. They also expressed doubts over the PGA Tour’s ability to secure enough financing from outside investors to remain financially competitive with LIV Golf (which has much more funding and no apparent expectation of economic return). Mr. Dunne indicated however that the PGA Tour would need to explore outside funding options if it cannot reach a final agreement with LIV Golf.
  • PIF’s Proposed Investment in the PGA Tour: Subcommittee Chairman Blumenthal raised concerns over how the proposed framework agreement between the PGA Tour and LIV Golf includes a PIF investment in a new entity that would control professional golf. He expressed concerns that this investment would provide the Saudi Arabian government with equity dominance and ownership over this new entity. He added that the framework agreement provides no assurances that the PGA Tour would not make additional concessions to the Saudi Arabian government moving forward. Subcommittee Ranking Member Johnson and the hearing’s witnesses stated however that the PGA Tour had not actively sought out this investment and that this investment had enabled the PGA Tour to settle its expensive litigation with LIV Golf. Mr. Price stated that PIF’s investment in the new entity would be a “significant amount” and estimated that this amount would be over $1 billion. He added that the PGA Tour would have complete control over additional investments made in the new entity and emphasized that the PGA Tour would control the new entity’s operations and board of directors.
  • Secrecy of the PGA Tour and LIV Golf’s Negotiations of the Framework Agreement: Subcommittee Chairman Blumenthal also criticized the PGA Tour for its secrecy in negotiating its framework agreement with LIV Golf and for not providing its Policy Board or golfers with advanced notice of the agreement prior to its announcement. Subcommittee Ranking Member Johnson and the hearing’s witnesses argued however that the negotiations between the PGA Tour and LIV Golf needed to be kept secret to ensure the viability of the negotiations between the two organizations. Subcommittee Ranking Member Johnson and Mr. Dunne asserted that lawyers for the two organizations would have likely attempted to stop the negotiations had they been disclosed because the settling of the litigation reduces spending on legal services from both organizations.
  • Concerns Regarding Saudi Arabia: Subcommittee Democrats raised particular concerns regarding Saudi Arabia’s involvement in LIV Golf and noted how Saudi Arabia has reportedly killed journalists, jailed and tortured dissidents, fostered the war in Yemen, and supported other terrorist activities (including the 9/11 terrorist attacks). Ranking Member Johnson stated that while concerns regarding Saudi Arabia are entirely legitimate, he asserted that it would be “grossly unfair” to expect the PGA Tour to bear the full burden for holding Saudi Arabia accountable for its actions. Ranking Member Johnson and Mr. Dunne also stated that Saudi Arabia’s investment in professional could lead to improved relations between the U.S. and Saudi Arabia, which could lead Saudi Arabia to liberalize more. Ranking Member Johnson further commented that it would be preferable for Saudi Arabia to reinvest their oil wealth in the U.S. (rather than China or Russia). Of note, Mr. Dunne provided a commitment to meet with the family members of the 9/11 attacks to listen to their concerns regarding the framework agreement between the PGA Tour and LIV Golf.
  • Inclusion of a Non-Disparagement Clause in the Framework Agreement: Subcommittee Democrats also criticized the framework agreement between the PGA Tour and LIV Golf for its inclusion of a non-disparagement clause that appears to prevent the PGA Tour’s leaders, Policy Board Members, and golfers from criticizing Saudi Arabia. Subcommittee Ranking Member Johnson and the hearing’s witnesses noted however that the non-disparagement agreement is only effective so long as the PGA Tour and LIV Golf negotiate a final agreement. They stated that non-disparagement clauses are commonly used during business negotiations to increase the likelihood of a negotiation’s success. The hearing’s witnesses also testified that the non-disparagement clause does not apply to the PGA Tour’s golfers and that the PGA Tour would not take disciplinary actions against its golfers for expressing their opinions. They further provided a commitment to the Subcommittee that they would not support any final agreement that bars the PGA Tour’s golfers and executives from expressing their opinions about Saudi Arabia.
  • Adoption of Side Agreements: Subcommittee Chairman Blumenthal expressed interest in determining whether there exist any side agreements between the PGA Tour and LIV Golf that are outside of the framework agreement between the two organizations. He noted how the Subcommittee had uncovered that the PGA Tour officials had prepared a side agreement providing that LIV Golf CEO Greg Norman would be terminated upon execution of a final agreement between the PGA Tour and LIV Golf. Mr. Price testified that he is unaware of any other understanding or agreements that are not reflected within the framework agreement between the PGA Tour and LIV Golf. He stated however that the PGA Tour would not need to retain Mr. Norman’s current position if the PGA Tour were to achieve a final agreement with LIV Golf.
  • Impact of the Proposed Merger on the PGA Tour’s Golfers: Subcommittee Democrats noted how many golfers had decided to remain with the PGA Tour and forgo the opportunity to earn tens of millions of dollars from LIV Golf. They expressed interest in ensuring that these golfers would be rewarded for their loyalty to the PGA Tour in any potential deal between the PGA Tour and LIV Golf. The hearing’s witnesses expressed their commitment to ensuring that these PGA Tour golfers would be rewarded for their loyalty as part of any final agreement. Mr. Dunne also indicated that PIF is interested in compensating the golfers that had remained part of the PGA Tour as part of a final agreement.
  • Antitrust Concerns: Sen. Marshall expressed interest in determining whether the PGA Tour faced antitrust scrutiny over its framework agreement with LIV Golf. Mr. Price mentioned how the PGA Tour had received scrutiny on antitrust grounds regarding their suspension of golfers that had joined LIV Golf. He testified that the PGA Tour had received notice from antitrust regulators that the framework agreement between the PGA Tour and LIV Golf would receive scrutiny. He expressed the PGA Tour’s intention to fully cooperate with this antitrust investigation.
  • Follow Up Hearings and Investigations: Subcommittee Chairman Blumenthal indicated that the Subcommittee would continue holding hearings and conducting investigations regarding the PGA Tour’s proposed merger with LIV Golf. He mentioned how the Subcommittee had invited two witnesses to the hearing that could not attend due to scheduling conflicts. He indicated that the Subcommittee is working with these witnesses to resolve these scheduling issues. He also stated that the Subcommittee would broaden its investigation of the PGA Tour’s proposed merger with LIV Golf to address other institutions and the impact that other repressive regimes have on U.S. institutions.
  • Hearing and Investigation Legitimacy Concerns: Full Committee Ranking Member Rand Paul (R-KY) contended that Congress lacks powers under the U.S. Constitution to investigate the PGA Tour’s proposed merger with LIV Golf. He argued that the U.S. Constitution’s Ninth Amendment and principles of liberty and contract afford protection for the agreement contemplated by the PGA Tour and LIV Golf. He further asserted that nothing in Section 8 of Article I of the U.S. Constitution permits Congress to intervene or involve itself in private contractual negotiations. Subcommittee Chairman Blumenthal argued however that Section 8 of Article I of the U.S. Constitution does provide Congress with the power to regulate interstate commerce (which should encompass professional golf). He also noted how the PGA Tour’s status as a 501(c)(6) not-for-profit entity is of interest to Congress given its implications on how the U.S. tax code is being used. He further discussed how Congress has a long history of conducting oversight on sports matters, including the National Collegiate Athletics Association (NCAA), domestic violence in the National Football League (NFL), doping in Major League Baseball (MLB), sexual assault in women’s gymnastics, and anticompetitive practices in multiple sports.
• Other Topics Related to the PGA Tour and LIV Golf:  Subcommittee Members used the hearing to raise other policy topics related to the PGA Tour and LIV Golf.
  • The PGA Tour China Series: Sen. Josh Hawley (R-MO) raised concerns over the PGA Tour’s business involvement in China through its China Series. He warned that this relationship would subject the PGA Tour and its golfers to pressures from the Chinese government. Mr. Price indicated that the PGA Tour China Series was last operated in 2019. He testified that the PGA Tour has no plans to continue operating this series. He also stated that the PGA Tour “firmly” supports human rights and is very concerned over China’s actions. Sen. Hawley further accused the PGA Tour of not disclosing its activities and its partnership with Chinese entities in its Form 990 filings with the U.S. Internal Revenue Service (IRS). Mr. Price stated that the PGA Tour would work to correct any IRS disclosure errors on its end.
  • The PGA Tour’s Future Activity in China and Russia: Subcommittee Chairman Richard Blumenthal (D-CT) called on the PGA Tour to commit to not hosting future events in China and Russia. Mr. Price stated that he could not make indefinite commitments on behalf of the PGA Tour. He indicated however that the PGA Tour currently has no plans involving China or Russia. Of note, Subcommittee Ranking Member Ron Johnson (R-WI) called Subcommittee Chairman Blumenthal’s request inappropriate. He stated that the PGA Tour is a private organization that must run their league for the benefit of their players and fans.
  • PGA Tour’s Charity Activities: Subcommittee Chairman Blumenthal raised concerns that less than 3 percent of the PGA Tour’s revenue in 2021 had gone to charitable grants. Mr. Price testified that the PGA Tour has voluntarily structured its tournaments in a way so that the net proceeds of these tournaments go to charity. He indicated that the 3 percent of the PGA Tour’s revenues that went toward charitable expenses in 2021 did not include the net proceeds generated by PGA Tour tournaments. He discussed how the PGA Tour partners with 501(c)(3) organizations and explained that these partnerships had enabled the PGA Tour to generate over $215 million for charities in 2022. He added that the PGA Tour had generated over $3.6 billion for charities cumulatively.
  • LIV Golf’s Use of Non-Unionized Television Broadcast Technicians: Sen. Alex Padilla (D-CA) criticized LIV Golf for its decision to replace its unionized television broadcast technicians with non-unionized television broadcast technicians during the league’s 2023 season. He noted how these non-unionized technicians do not receive any health or retirement benefits. He expressed interest in the treatment and fairness of all employees that make golf revenues possible (including non-golfers).

Hearing Witnesses:

1. Mr. Ron Price, Chief Operating Officer, PGA Tour
2. Mr. Jimmy Dunne, Board Member, PGA Tour

Member Opening Statements:

Subcommittee Chairman Richard Blumenthal (D-CT):

• He remarked that the hearing would focus on how a brutal and repressive regime can purchase influence and take over a popular U.S. institution to rehabilitate its public image.
  • He highlighted how Saudi Arabia has reportedly killed journalists, jailed and tortured dissidents, fostered the war in Yemen, and supported other terrorist activities (including the 9/11 terrorist attacks).
• He also stated that the hearing would focus on how money could be used to induce individuals and institutions to betray their own values and supporters.
  • He raised concerns that other sports and institutions could be susceptible to corrupting influence from foreign regimes.
• He discussed how sports are central to U.S. culture and society and commented that sports have “huge implications” for the U.S.’s way of life, local economies, local communities, and international reputation.
  • He asserted that sports institutions are “vital” to the U.S.’s national interest and commented that foreign takeovers of these institutions can threaten U.S. national security.
• He expressed hope that the hearing would help to uncover the reasons behind the PGA Tour’s sudden reversal of its opposition to LIV Golf.
  • He also expressed interest in exploring how similar foreign investments (including from repressive regimes) could impact the U.S., its national security, and the world.
• He discussed how the PGA Tour had previously been the biggest critic of Saudi Arabia’s efforts to dominate the sport of golf and of Saudi Arabia’s “sportswashing.”
• He mentioned how the PGA Tour had sought to garner opposition to the Saudi Arabian-backed LIV Golf from golf fans, sponsors, families impacted by the 9/11 terrorist attacks, and members of Congress.
  • He indicated that he had personally joined the PGA Tour in its opposition to LIV Golf based on the PGA Tour’s commitment to remaining an independent American institution.
• He noted how many golfers had decided to remain with the PGA Tour and forgo the opportunity to earn tens of millions of dollars from LIV Golf.
  • He called the decisions of these golfers to remain with the PGA Tour admirable and heroic.
• He indicated however that the PGA Tour had announced in June 2023 that it would partner with Saudi Arabia’s PIF (which is Saudi Arabia’s government wealth fund that owns the LIV Golf) to take over the sport of golf.
  • He emphasized that PIF is aligned with the very top of the Saudi monarchy.
• He stated that the PGA Tour’s partnership with PIF had led many PGA Tour supporters (including many golfers) to feel betrayed.
• He expressed interest in learning why the PGA Tour had changed their position on LIV Golf and whether this change was meant to avoid litigation or to obtain a large investment from the Saudi Arabian government.
  • He also expressed interest in learning about how much money the Saudi Arabian government had offered the PGA Tour and whether the PGA Tour had sought alternative sources for funds.
• He mentioned how the Subcommittee had launched an inquiry into the proposed PGA Tour-LIV Golf deal and indicated that the Subcommittee has incorporated some of its findings thus far into a memorandum.
  • He indicated that this memorandum has been submitted for the hearing’s record.
• He stated that while the agreement between the PGA Tour and LIV Golf is seemingly unspecific, vacuous, and preliminary, he noted that the agreement would provide the Saudi Arabian government with an equity dominance and ownership over professional golf through its investment.
  • He also mentioned how the agreement provides no assurances that the PGA Tour would not make additional concessions to the Saudi Arabian government moving forward.
• He noted how the Subcommittee had found that the PGA Tour had rebuffed a PIF offer in January 2023 and had subsequently reapproached PIF out of fears that PIF would increase their investment in LIV Golf.
  • He also mentioned how the Subcommittee had found out that Saudi Arabia’s early vision for LIV Golf had included a team golf tournament culminating in Saudi Arabia, at least one high-profile PGA event in Saudi Arabia, and a PIF-managed global golf investment fund.
• He noted how the PIF had added a non-disparagement clause to the PGA Tour-LIV Golf agreement one night prior to the agreement’s signing that appears to prevent the PGA Tour from criticizing Saudi Arabia.
  • He added that this non-disparagement clause appears to apply to the hearing’s witnesses.
• He also mentioned how PIF Governor Yasir al-Rumayyan is set to become the chairman of the PGA Tour’s board of directors and will sit on the executive committee of the new company that will be formed by the PGA Tour and LIV Golf.
• He further discussed how there may exist side agreements and understandings between the PGA Tour and LIV Golf.
  • He noted how the Subcommittee had uncovered that the PGA Tour officials had prepared a side agreement providing that LIV Golf CEO Greg Norman would be terminated upon execution of the final agreement between the PGA Tour and LIV Golf.
• He stated that Subcommittee still does not know about all of the potential side agreements involved in the proposed PGA Tour-LIV Golf merger, the assets that the PGA Tour will place in the newly formed entity, how the PGA Tour will maintain its status as a non-profit organization, and the assets that the PGA Tour gained while it had non-profit status that will be transferred to a for-profit entity.
  • He also noted how it remains unclear what will happen to golfers that want to speak out against Saudi Arabia’s human rights abuses and whether golfers will need to speak on behalf of the Saudi Arabian government.
  • He further stated that it remains unknown whether LIV Golf would continue to exist following the conclusion of their next season and emphasized that the amount of money underlying the proposed PGA Tour-LIV Golf agreement remains unknown.
• He expressed hope that the hearing would help to answer the aforementioned questions and that the Subcommittee would learn more about this topic in the future.
• He remarked that the Saudi Arabian government has “nearly limitless capacity” to invest in sports endeavors based on PIF’s nearly $700 billion in assets.
  • He highlighted how Saudi Arabia has already purchased an English Premier League soccer team and two of the world’s largest video game tournament operators.
  • He added that Saudi Arabia has made investments in Formula One racing.
• He also mentioned how the Subcommittee had invited two witnesses for the hearing that could not attend due to scheduling conflicts and indicated that the Subcommittee is working with these witnesses to resolve these scheduling issues.

Subcommittee Ranking Member Ron Johnson (R-WI):

• He discussed how all professional sports face challenges around the structuring and maintenance of competition, fair compensation policies for athletes, and the navigation of a landscape where entities possess unequal resources.
• He noted that these challenges have been addressed through the formation of leagues and governing bodies that develop and enforce the rules of the game and competition.
  • He indicated however that many of the rules and practices employed by sports leagues may run afoul of federal antitrust laws.
• He remarked that the hearing considers the reality that the PGA Tour had faced when Saudi Arabia had decided to invest in professional golf.
• He noted how the PGA Tour has net assets worth approximately $1.25 billion according to its Form 990 filing with the IRS.
  • He indicated that PIF by contrast is estimated to be worth between $600 billion and $700 billion.
• He discussed how multiple golf tours around the world had competed in a commercial marketplace with the PGA Tour dictated by the “normal market force” of profit and loss prior to LIV Golf’s creation.
  • He noted however that an entity with little (if any) regard or expectation for a direct financial return is governing LIV Golf.
• He described the competition between the PGA Tour and LIV Golf as unfair and stated that the PGA Tour had accurately viewed LIV Golf as an existential threat.
• He then expressed his sympathies for the families impacted by the 9/11 terrorist attacks and expressed support for the efforts of these families to obtain information about the attacks that is currently being withheld from the U.S. and Saudi Arabian governments.
  • He asserted that the U.S. and Saudi Arabian governments are not being transparent with the families impacted by the 9/11 terrorist attacks.

Subcommittee Chairman Richard Blumenthal (D-CT):

• He expressed interest in working with Subcommittee Ranking Member Ron Johnson (R-WI) on a bipartisan effort to make facts about the 9/11 terrorist attacks more publicly available.

Subcommittee Ranking Member Ron Johnson (R-WI):

• He expressed hope that the public release of more information related to the 9/11 terrorist attacks could be a positive result stemming from the hearing.
• He then remarked that the concept of “sportswashing” is a legitimate issue for the Subcommittee to consider.
  • He asserted that no amount of money can rehabilitate Saudi Arabia’s reputation stemming from its assassination of journalist Jamal Khashoggi and other human rights abuses.
• He stated however that it would be “grossly unfair” to expect the PGA Tour to bear the full burden for holding Saudi Arabia accountable for these actions.
  • He noted how anyone that drives a car or uses oil-based products has contributed financially to PIF.
• He remarked that foreign investment in the U.S. is generally beneficial and commented that it would be preferable for Saudi Arabia to reinvest their oil wealth in the U.S. (rather than China or Russia).
  • He also commented that Saudi Arabia’s involvement in golf could help the country to modernize and lead Saudi Arabia to offer more rights to women, which would be beneficial.
• He also stated that Congress has a legitimate role to play in settling the confusion in federal laws governing professional sports.
• He indicated however that he did not sign the request for information (RFI) or the Committee Majority’s memorandum for the hearing because the PGA Tour and LIV Golf are in the middle of what should be a private negotiation.
  • He commented that there thus does not yet exist a deal between the PGA Tour and LIV Golf for the Subcommittee to review.
• He discussed how the Subcommittee’s inquiries and investigations generally involve some measure of wrongdoing and asserted that there is nothing wrong with the PGA Tour negotiating its survival.
  • He noted how negotiations are often delicate and mostly private and expressed concerns that Congress’s involvement in these negotiations could have negative consequences.
• He expressed hope that the hearing could be constructive and address the public’s legitimate concerns regarding the future of golf and the preservation of competition in professional golf.

Witness Opening Statements:

Mr. Ron Price (PGA Tour):

• He remarked that the PGA Tour’s goal is to protect an American institution that generates over $200 million annually for over 3,000 charities across 34 states.
  • He also stated that the PGA Tour brings the highest level of sports and entertainment to millions of fans around the world and provides a competitive and legacy-driven platform for the world’s best golfers.
• He remarked however that PGA Tour had faced an “unprecedented attack” following the launch of the Saudi Arabian-funded LIF Golf Tour in 2022.
• He discussed how the PGA Tour had been forced to suspend golfers that chose to play for LIV Golf in order to defend its organization and its regulations.
  • He explained that while PGA golfers could choose to play for LIV Golf, he indicated that these golfers could not participate in both PGA Tour and LIV Golf events.
• He mentioned how the PGA Tour had been sued in August 2022 in an effort to invalidate the PGA Tour’s regulations and commented that this situation had created an unprecedented “fracture” in the sport of golf.
• He remarked that the PGA Tour had taken all possible actions to defend its values, including spending tens of millions of dollars to respond to litigation instigated by LIV Golf.
  • He commented that this litigation had diverted significant funds away from the PGA Tour’s core mission of supporting its players and charity.
• He mentioned how the PGA Tour had been successful in securing a court ruling that PIF was not protected under sovereign immunity with respect to litigation discovery and potentially liability.
  • He noted how this court ruling was unprecedented.
• He stated that the PGA Tour has experienced continued strength, which he attributed to the loyalty, talent, and the performance of the PGA Tour’s member golfers.
• He remarked however that the PGA Tour’s dispute with LIV Golf was undermining the sport of golf’s growth and threatened PGA Tour’s survival.
  • He commented that while the PGA Tour had sustained significant victories against LIV Golf in litigation, he asserted that the continuation of the litigation would have inflicted long-term harm on the PGA’s Tour’s players, fans, partners, employees, and charities, as well as the communities that the PGA Tour supports.
• He stated that the PGA Tour had decided to pursue a peace with LIV Golf that would end their divisive litigation battles, as well maintain the PGA Tour’s structure, mission, and long-standing support for charity.
• He indicated that while negotiations toward a definitive agreement between the PGA Tour and LIV Golf are currently underway, he remarked that the framework agreement between the organizations contains important safeguards that ensure that the PGA Tour will fundamentally operate the same moving forward.
  • He testified that the PGA Tour will control the operations and the board of directors for the new PGA Tour subsidiary, as well as serve as the governing body for competitive golf in connection with any combined golf operations.
  • He also testified that the agreement provides clear, explicit, and permanent safeguards that ensure that the PGA Tour will have control over its operations, its strategy, and the continuity of its mission.
• He acknowledged Congress’s need for additional clarity regarding how and why the PGA Tour had entered into an agreement with LIV Golf and expressed his willingness to provide more insights into this situation.
  • He stated that the PGA Tour had found a workable and productive solution to an unsustainable predicament and commented that this solution would benefit golf fans and the tour itself.

Mr. Jimmy Dunne (PGA Tour):

• He indicated that he has served as an independent director on the PGA Tour’s Policy Board since January 2023 and stated that he had joined the Policy Board during a contentious period.
  • He elaborated that he had joined the Policy Board at a time when some PGA Tour golfers had left the PGA Tour for LIV Golf, there had been litigation between the PGA Tour and LIV Golf, and there had been growing tension and division among golfers, fans, and sponsors.
• He remarked that the continuation of this tension and litigation between the PGA Tour and LIV Golf would have resulted in permanent damage to the sport of golf.
  • He stated that the PGA Tour had needed to find a solution to these problems that would preserve the standards, tradition, and authority of the PGA Tour.
• He recounted how LIV Golf had experienced legal setbacks in its litigation against the PGA Tour and the DP World Tour in April 2023 and stated that these setbacks provided the PGA Tour with an opportunity to pursue a resolution to their conflict with the LIV Golf.
  • He asserted that a long-term legal battle between the PGA Tour and LIV Golf would have harmed golfers, fans, sponsors, and charities.
• He testified that the PGA Tour had sought to begin its negotiations with LIV Golf while the PGA Tour was in a strong position.
  • He asserted that this strong position enabled the PGA Tour to focus on uniting the game of golf or to withdraw from negotiations if this objective was not being achieved.
• He testified that he had contacted PIF Governor Yasir Al-Rumayyan (who is the majority owner of LIV Golf) at the direction of the PGA Tour Commissioner and Board Chairman and indicated that a “limited number” of in-person meetings had followed this contact.
  • He commented that these meetings had resulted in the reaching of a framework agreement between the PGA Tour and LIV Golf on May 30, 2023.
• He stated that the framework agreement between the PGA Tour and LIV Golf mainly involves mutual promises of continuing to negotiate in the future.
• He testified that the only deal reached in the framework agreement between the PGA Tour and LIV Golf is that the lawsuits among the parties have been settled.
  • He commented that all other elements of the agreement are “aspirational.”
• He remarked that the framework agreement between the PGA Tour and LIV Golf has all the elements for a final agreement between the two organizations
• He stated that the PGA Tour and its advisors have taken the lead in negotiating the final agreement with LIV Golf since the June 6, 2023 announcement of the framework agreement between the two organizations.
• He testified that the PGA Tour will continue to manage the game of golf and will retain majority governing control and majority economic control.
  • He also indicated that the PGA Tour will appoint the majority of the board of directors under any future agreement.
• He asserted that the agreement framework between the PGA Tour and LIV Golf would not have been possible without the clear understanding that the PGA Tour will retain full decision making authority.
• He then acknowledged that there exist concerns over the PGA Tour’s involvement with Saudi Arabian-owned LIV Golf because some of the perpetrators of the 9/11 terrorist attacks were from Saudi Arabia.
  • He mentioned how he had personally lost friends and colleagues in the 9/11 terrorist attacks and asserted that he would not do business with any parties involved in these attacks.
• He remarked that the only benefit he would receive from the ultimate success of an agreement between the PGA Tour and LIV Golf is the unification of the game of golf.
  • He testified that he would not receive a job, a fee, or compensation of any kind if this agreement between the two organizations were to be reached.
• He stated that his entire concern is resolving the current division between the PGA Tour and LIV Golf and uniting the game of golf for the sake of golfers, fans, sponsors, and charities.

Congressional Question Period:

Subcommittee Chairman Richard Blumenthal (D-CT):

• Chairman Blumenthal asked Mr. Price to indicate whether the PGA Tour had been prevailing in its litigation against LIV Golf prior to the announcement of the framework agreement between the two organizations.
  • Mr. Price indicated that while the PGA Tour had won some legal battles against LIV Golf, he stated that the litigation had been “far from over.”
• Chairman Blumenthal remarked that while the PGA Tour had been prevailing in its litigation against LIV Golf, he noted that the PGA Tour had decided that the cost of continuing this litigation would be too expensive. He highlighted how the framework agreement between the PGA Tour and LIV Golf had involved settling the litigation between the parties and a Saudi Arabian investment in a new entity to be created. He asked Mr. Price to confirm his understanding of events.
  • Mr. Price described the litigation between the PGA Tour and LIV Golf as expensive, disruptive, and divisive. He remarked that the PGA Tour faced a “real threat” that LIV Golf (which is fully financed by Saudi Arabia) would become the leader of professional golf.
• Chairman Blumenthal asked Mr. Price to confirm that the PGA Tour had decided to accept financing and an investment from Saudi Arabia for a new entity that would also incorporate the PGA Tour.
  • Mr. Price testified that the PGA Tour has not accepted any funding from Saudi Arabia. He remarked that the PGA Tour has merely settled its litigation with LIV Golf and had entered into a framework agreement in which the PGA Tour will be the “clear leader” of professional golf.
• Chairman Blumenthal interjected to ask Mr. Price to confirm that there exists an understanding that PIF will make an investment in the PGA Tour and the new entity that would incorporate the PGA Tour.
  • Mr. Price stated that PIF will not be making an investment in the PGA Tour. He indicated that PIF will be contributing funding to a PGA Tour-controlled subsidiary.
• Chairman Blumenthal interjected to ask Mr. Price to indicate the of money that Saudi Arabia would invest into the new entity that would incorporate the PGA Tour.
  • Mr. Price testified that the amount of money that Saudi Arabia would invest the new entity has not yet been determined.
• Chairman Blumenthal asked Mr. Price to indicate whether there have occurred any discussions regarding the amount of money that Saudi Arabia would invest in the new entity that would incorporate the PGA Tour.
  • Mr. Price stated that Saudi Arabia’s investment in the new entity would be a “significant amount” and estimated that this amount would be over $1 billion.
• Chairman Blumenthal asked Mr. Price to indicate whether Saudi Arabia could contribute additional amounts of money to the new entity that would incorporate the PGA Tour.
  • Mr. Price stated that the PGA Tour would have complete control over additional investments made in the new entity. He noted how this new entity would be a PGA Tour subsidiary and indicated that the PGA Tour has total control over how much money this subsidiary accepts both currently and in the future.
• Chairman Blumenthal asked Mr. Price to indicate whether the PGA Tour had explored other sources for potential funding and financing beyond PIF.
  • Mr. Price testified that the PGA Tour had explored other sources for potential funding and financing beyond PIF. He remarked however that the PGA Tour’s pursuit of these alternative funding and financing sources would have caused the PGA Tour to remain embroiled in expensive and disruptive litigation.
• Chairman Blumenthal interjected to comment that the PGA Tour could have won this litigation and not needed to enter into a framework agreement with LIV Golf.
  • Mr. Price described the PGA Tour’s potential victory in its lawsuit against LIV Golf as “far from a certainty.” He also remarked that LIV Golf would have continued to recruit the PGA Tour’s golfers had the PGA Tour’s litigation against LIV Golf remained ongoing. He stated that this dynamic would have put the PGA Tour in jeopardy and could have enabled LIV Golf to become the leader of professional golf (where it might have operated for the benefit of Saudi Arabia).
• Chairman Blumenthal asked Mr. Price to discuss the other sources of funding that the PGA Tour had explored beyond PIF.
  • Mr. Price testified that the PGA Tour did not have any specific funding conversations with any outside firms. He stated that the PGA Tour had considered obtaining other sources of funding and potential terms for this funding.
• Chairman Blumenthal asked Mr. Price to discuss the PGA Tour’s internal conversations regarding alternative sources of funding.
  • Mr. Price testified that the PGA Tour had considered alternative sources of funding during its board meetings. He indicated that the PGA Tour had considered adopting a structure that is similar to the structure included in its framework agreement with LIV Golf. He stated that the PGA Tour had decided not to pursue these alternative sources of funding because the pursuit of these sources would have resulted in the PGA Tour remaining in litigation with the LIV Golf. He emphasized that LIV Golf is backed by PIF, which has $700 billion in assets.
• Chairman Blumenthal then noted how Mr. Price had prepared talking points for PGA Tour Commissioner Jay Monahan to brief the PGA Tour’s Policy Board. He mentioned how these talking points indicate that PIF will make a financial investment to become a premiere corporate sponsor of the PGA Tour, DP World Tour, and other international tours. He also mentioned how these talking points indicate that PIF is also committed to providing significant financial support toward PGA Tour directed causes that positively impact the game of golf on a global basis. He further mentioned how these talking points indicate that LIV Golf CEO Greg Norman will be reassigned to an advisory tour that will be determined by PIF when the PGA Tour becomes the manager of the LIV Golf. He noted that while Mr. Dunne had told the Subcommittee that the framework agreement between the PGA Tour and LIV Golf does not address money, he stated that the two organizations had an understanding that PIF would invest more than $1 billion in the newly established entity that would incorporate the PGA Tour. He asked Mr. Price to confirm that PIF plans to make an investment in the newly established entity.
  • Mr. Price remarked that the PGA Tour and LIV Golf have not reached an agreement regarding a PIF investment. He stated however that there have been discussions about a potential investment from PIF into a new entity that would incorporate the PGA Tour. He also stated that the PGA Tour would find it important for PIF to financially support social causes promoting access to the game of golf if the PGA Tour were to reach an agreement with LIV Golf.
• Chairman Blumenthal then asked Mr. Price to indicate whether he is bound by the non-disparagement clause preventing criticism of Saudi Arabia’s actions included within the framework agreement between the PGA Tour and LIV Golf.
  • Mr. Price stated that he was not bound by a non-disparagement clause within the current forum.
• Chairman Blumenthal asked Mr. Price to indicate whether he is generally bound by the non-disparagement clause included within the framework agreement between the PGA Tour and LIV Golf.
  • Mr. Price stated that business agreement negotiations generally contain non-disparagement clauses.
• Chairman Blumenthal interjected to emphasize that Mr. Price is bound by the non-disparagement clause included within the framework agreement between the PGA Tour and LIV Golf. He also asked Mr. Dunne to indicate whether he is bound by this non-disparagement clause.
  • Mr. Dunne stated that he would answer any questions at the hearing truthfully.
• Chairman Blumenthal commented that he believed that Mr. Dunne would answer the Subcommittee’s questions honestly. He also acknowledged that non-disparagement clauses are very common within the context of business agreements. He stated however that the non-disparagement clause included within the framework agreement between the PGA Tour and LIV Golf would bind the PGA Tour’s leaders, Policy Board members, and golfers. He noted how LIV Golf’s players are also subject to a non-disparagement clause regarding PIF’s leadership. He asked the witnesses to commit to ensuring that a final agreement between the PGA Tour and LIV Golf will not prevent golfers or the PGA Tour’s executives from criticizing Saudi Arabia’s actions.
  • Mr. Price remarked that the PGA Tour would seek to preserve the right of its golfers and executives to criticize Saudi Arabia’s actions as part of any final agreement with LIV Golf. He also noted how the framework agreement between the PGA Tour and LIV Golf does not prevent the PGA Tour’s golfers from expressing their opinions on any matters.
• Chairman Blumenthal interjected to ask Mr. Price to commit to ensuring that any final agreement between the PGA Tour and LIV Golf would not prevent golfers or the PGA Tour’s executives from criticizing Saudi Arabia’s actions.
  • Mr. Price stated that he did not anticipate that a final agreement between the PGA Tour and LIV Golf would include a non-disparagement clause barring golfers and the PGA Tour’s executives from criticizing Saudi Arabia’s actions.
• Chairman Blumenthal interjected to ask Mr. Price to provide a commitment that the PGA Tour would not make a final agreement with LIV Golf if the final agreement were to include a non-disparagement clause barring golfers and the PGA Tour’s executives from criticizing Saudi Arabia’s actions.
  • Mr. Price stated that he would not recommend that the PGA Tour’s Policy Board approve a final agreement with LIV Golf if said agreement were to a non-disparagement clause barring golfers and the executives from criticizing Saudi Arabia’s actions.
• Chairman Blumenthal interjected to ask Mr. Dunne to commit to ensuring that a final agreement between the PGA Tour and LIV Golf will not prevent golfers or the PGA Tour’s executives from criticizing Saudi Arabia’s actions.
  • Mr. Dunne indicated that he is not involved in the PGA Tour’s negotiations with LIV Golf. He stated that he would inform the Policy Board of Chairman Blumenthal’s concerns regarding a potential non-disparagement clause barring golfers and the PGA Tour’s executives from criticizing Saudi Arabia’s actions. He emphasized that he alone could not decide whether the PGA Tour Policy Board will approve a final agreement with LIV Golf. He expressed his commitment to advocating that any final agreement between the PGA Tour and LIV Golf not include a non-disparagement clause barring golfers and the PGA Tour’s executives from criticizing Saudi Arabia’s actions. He stated however that a final agreement between the PGA Tour and LIV Golf is not a certainty. He also emphasized that the current non-disparagement clause is limited to the term of the framework agreement.

Subcommittee Ranking Member Ron Johnson (R-WI):

• Ranking Member Johnson asked the witnesses to confirm that the PGA Tour would not have sought out additional funding if PIF had never entered the professional golf space.
  • Mr. Price stated that the PGA Tour had sought out additional funding because of PIF’s launch of LIV Golf.
• Ranking Member Johnson noted how PIF’s financial wealth is 500 times larger than the PGA Tour’s financial wealth. He then asked Mr. Dunne to explain who Roger Devlin is.
  • Mr. Dunne testified that Roger Devlin had emailed him several times and that he has never personally met Mr. Devlin. He indicated that Mr. Devlin is an investment banker.
• Ranking Member Johnson stated that he believes that Mr. Devlin had helped Saudi Arabia to invest in a soccer team.
  • Mr. Dunne stated that Mr. Devlin’s partner had co-invested in a soccer team with PIF Governor Yasir al-Rumayyan.
• Ranking Member Johnson noted how Mr. Devlin had contacted Mr. Dunne in January 2023 to facilitate a conversation between the PGA Tour and LIV Golf. He asked Mr. Dunne to confirm that he had rebuffed Mr. Devlin’s request for a conversation.
  • Mr. Dunne stated that he had only wanted to talk to PIF Governor Yasir al-Rumayyan regarding LIV Golf.
• Ranking Member Johnson mentioned how Mr. Devlin had sent an email to Mr. Dunne on April 14, 2023. He noted how Mr. Devlin’s email had expressed concerns that PIF would “double down” on its investment in LIV Golf. He commented that Mr. Devlin’s email demonstrates how LIV Golf posed a significant threat to the PGA Tour’s continued viability. He asked Mr. Dunne to indicate whether this prospect of an increased PIF investment in LIV Golf had caused the PGA Tour to pursue negotiations with PIF.
  • Mr. Dunne remarked that the PGA Tour already faced significant threats from LIV Golf (even without increased investments in LIV Golf from PIF). He stated that the PGA Tour could not survive over the long-term if LIV Golf had continued to poach its golfers each year.
• Ranking Member Johnson remarked that that PIF and LIV Golf had posed an existential threat to the PGA Tour and commented that the PGA Tour is now responding to this threat. He asked Mr. Dunne to provide his thoughts on PIF Governor Yasir al-Rumayyan. He also asked Mr. Dunne to theorize the rationale behind PIF’s actions toward the PGA Tour.
  • Mr. Dunne reiterated that he had recommended that the PGA Tour only communicate directly with PIF Governor Yasir al-Rumayyan. He mentioned how he had met with PIF Governor al-Rumayyan in April 2023 and testified that Governor al-Rumayan had indicated that he respected the PGA Tour. He called Governor al-Rumayan’s attitude surprising given how LIV Golf’s management has expressed acrimony toward the PGA Tour. He stated that this meeting had led him to recommend that PGA Commissioner Jay Monahan meet with Governor al-Rumayan.
• Ranking Member Johnson then asked the witnesses to discuss how the PGA Tour faces challenges in terms of compensating its top golfers and attracting top golfers to play at its tournaments.
  • Mr. Price discussed how PGA Tour golfers earn compensation based on their performance in PGA Tour competitions. He stated that the PGA Tour strives to allocate resources to the top performing golfers while concurrently maintaining earnings opportunities for all PGA Tour golfers. He noted how the top performing golfers drive fan interest in the PGA Tour, which in turn drives revenue for the PGA Tour. He remarked that LIV Golf’s ability to attract top performing golfers away from the PGA Tour undermines the PGA Tour’s ability to maintain its primary underlying revenue sources. He commented that LIV Golf can attract top performing golfers because it maintains an “irrational” business model. He stated that LIV Golf’s continued poaching of the PGA Tour’s top performing golfers had posed an existential threat to the PGA Tour.
• Ranking Member Johnson then discussed how business negotiations tend to be conducted in private and emphasized that the PGA Tour and LIV Golf have not yet reached a final agreement. He noted that the PGA Tour and LIV Golf have merely ended their litigation against each other and are currently negotiating a broader agreement. He asked the witnesses to address how the public nature of the negotiations between the PGA Tour and LIV Golf make it more challenging for the two organizations to reach a final agreement.
  • Mr. Dunne remarked that the public nature of the negotiations between the PGA Tour and LIV Golf makes the negotiations “very complex.” He expressed the PGA Tour’s commitment to moving from a framework agreement to a definitive agreement with LIV Golf. He stated that a definitive agreement would enable the PGA Tour to continue its leadership in professional golf and to uphold its standards for tournaments, golfers, and charities. He commented that the public nature of the negotiations between the two organizations make the negotiations more difficult.
• Ranking Member Johnson remarked that the framework agreement between the PGA Tour and LIV Golf provides a “win-win” situation for the two organizations. He elaborated that the framework agreement provides Saudi Arabia with influence regarding the game of golf and the PGA Tour with continued control over the game. He asked Mr. Dunne to discuss how the framework agreement between the PGA Tour and LIV Golf benefits both organizations.
  • Mr. Dunne indicated that he understands Subcommittee Chairman Richard Blumenthal’s (D-CT) concern that PIF could take over professional golf. He expressed optimism that the PGA Tour could reach a final agreement with LIV Golf that benefits both organizations. He raised concerns that the PGA Tour’s failure to reach an agreement with LIV Golf could ultimately result in the PGA Tour’s destruction. He noted how PIF is already investing billions of dollars into LIV Golf and is seeking to destroy the PGA Tour. He added that PIF’s significant funding advantage over the PGA Tour enables LIV Golf to outcompete the PGA Tour for the foreseeable future.
• Ranking Member Johnson indicated that he shares Mr. Dunne’s concerns regarding the PGA Tour’s inability to compete with LIV Golf given LIV Golf’s significant financial backing.

Sen. Alex Padilla (D-CA):

• Sen. Padilla expressed interest in exploring how a potential agreement between the PGA Tour and LIV Golf would impact professional golfers. He emphasized that the performance of golfers drives fan interest and revenue for these leagues. He mentioned how PGA Tour officials had been highly critical of LIV Golf and the professional golfers that had joined LIV Golf prior the announcement of the framework agreement between the PGA Tour and LIV Golf. He noted how the PGA Tour had suspended at least 24 golfers who had participated in LIV Golf events and had declared these golfers to be ineligible to participate in PGA Tour tournaments. He stated that the PGA Tour’s subsequent decision to reach a framework agreement with LIV Golf had created frustration among PGA Tour golfers who had decided to remain with the PGA Tour. He highlighted how these golfers had rejected significant financial offers to join LIV Golf. He asked Mr. Dunne to address how golfers that had remained loyal to the PGA Tour should be compensated for their lost opportunities. He also asked Mr. Dunne to indicate whether these PGA Tour golfers will be eligible to receive some form of damages. He further asserted that the golfers that remained with the PGA Tour had experienced reputational damage because of the PGA Tour’s actions.
  • Mr. Dunne indicated that Mr. Price is better situated to answer Sen. Padilla’s question given how Mr. Price is leading the PGA Tour’s negotiations with LIV Golf. He then remarked that no agreement between the PGA Tour and LIV Golf can be reached without the full support of the PGA Tour’s golfers. He mentioned how the PGA Tour’s Policy Board includes five player representatives. He called it unimaginable that he would vote to approve an eventual agreement between the PGA Tour and LIV Golf that does not have the support of most of these player representatives. He then stated that the PGA Tour had negotiated the settlement of its lawsuits with LIV Golf in complete secrecy to ensure that the lawyers involved in the lawsuit did not undermine the negotiations. He commented that these lawyers had a financial incentive to continue the litigation for as a long as possible. He noted how the PGA Tour’s negotiations with LIV Golf involve two stages. He indicated that the first stage of the negotiation involved the settlement of the lawsuit between the two organizations, the recognition that the PGA Tour would control any newly formed entity, and an agreement to continue negotiations. He stated that PGA Tour golfers will need to receive some type of benefit for remaining on the PGA Tour.
• Sen. Padilla also asked the witnesses to address what would happen to the golfers that joined LIV Golf and lost their eligibility to compete in PGA Tour events if the PGA Tour and LIV Golf agree to merge.
  • Mr. Price mentioned how the PGA Tour currently has two task forces in place. He indicated that the first task force is evaluating ways in which the PGA Tour can recognize the golfers that have remained loyal to the PGA Tour. He stated that the PGA Tour would not move forward with a definitive agreement with LIV Golf unless the agreement can properly recognize these golfers. He then noted how the PGA Tour had suspended the golfers that had left the PGA Tour to play for LIV Golf. He indicated that these golfers would play for a PGA Tour-controlled golf league if the PGA Tour and LIV Golf were to reach an agreement. He indicated that these golfers would need to go through the PGA Tour’s existing rules and regulations process to gain reentry into this new league.
• Sen. Padilla then criticized LIV Golf for its decision to replace its unionized television broadcast technicians with non-unionized television broadcast technicians during the league’s 2023 season. He noted how these non-unionized technicians do not receive any health or retirement benefits. He expressed interest in the treatment and fairness of all employees that make golf revenues possible (including non-golfers).

Full Committee Ranking Member Rand Paul (R-KY):

• Ranking Member Paul remarked that he has been a vocal critic of Saudi Arabia for many years and mentioned how he has led the effort to block U.S. arm sales to Saudi Arabia. He stated that Saudi Arabia has demonstrated a “relentless pattern of malign behavior,” including the killing and dismemberment of journalist Jamal Khashoggi. He also stated that Saudi Arabia has exhibited a consistent disregard for human rights. He further accused Saudi Arabia of committing war crimes in Yemen, which have resulted in thousands of civilian casualties. He asserted however that Congress lacks powers under the U.S. Constitution to involve itself in the game of golf. He argued that the U.S. Constitution’s Ninth Amendment and principles of liberty and contract afford protection for the agreement contemplated by the PGA Tour and LIV Golf. He remarked that Congress has “no business” asking the PGA Tour about a potential deal with LIV Golf. He stated that Congress could have expressed its outrage over Saudi Arabia through canceling the $650 million sale of advanced weapons to Saudi Arabia in December 2021. He expressed frustrations that Congress had not held any hearings on this sale and has instead continued to sell weapons to Saudi Arabia. He remarked that Congress should defend the unenumerated rights of private actors rather than expand its few and defined powers to regulate all matters. He asserted that the U.S. government has no role to play in the game of golf. He stated however that Congress could address legitimate issues regarding Saudi Arabia, such as the potential legal obligation that the Saudi Arabian government owes to the families of 9/11 terrorist attack victims, U.S. weapons sales to Saudi Arabia, and U.S. involvement in the war in Yemen. He further remarked that Congress should consider the applicability of federal antitrust laws to sports. He stated that the PGA Tour should be allowed to exclude golfers that do not adhere to their rules. He criticized the U.S. Supreme Court for ruling that the NCAA could not invoke their own rules and commented that this ruling harms sports associations. He blamed this ruling on Congressional inaction. He contended that federal antitrust laws should not apply to sports leagues. He also criticized federal antitrust laws for protecting the interests of large corporations over the interests of small businesses and individuals. He stated that federal antitrust laws should not apply to sports associations and commented that sports association membership is voluntary. He reiterated his contention that the federal government should not involve itself in the PGA Tour’s negotiations with LIV Golf and called the hearing illegitimate and inappropriate. He commented however that Congress should address other policy issues related to Saudi Arabia.

Subcommittee Chairman Richard Blumenthal (D-CT):

• Chairman Blumenthal disputed Full Committee Ranking Member Rand Paul’s (R-KY) assertion that the Subcommittee should not investigate the proposed merger between the PGA Tour and LIV Golf. He remarked that Section 8 of Article I of the U.S. Constitution empowers Congress to investigate interstate commerce. He noted how golf is a $100 billion industry and highlighted how the PGA Tour has provided $3.6 billion to charity. He also mentioned how the Travelers Championship (which is a PGA Tour event) provides $60 million annually to his state of Connecticut, as well as millions of dollars for local charities. He remarked that the PGA Tour has a “major” impact on the U.S. economy, American life, and the U.S.’s public image. He also stated that the PGA Tour derives “tremendous” benefits from federal tax laws because it operates as a 501(c)(6) not-for-profit entity. He asserted that this statutory provision has received little Congressional scrutiny and commented that the current hearing may result in greater scrutiny of this provision. He mentioned how a 2013 study had found that this statutory provision was worth at least $200 million to the PGA Tour between 1993 and 2013. He discussed how Congress has a long history of conducting oversight on sports matters, including the NCAA, domestic violence in the NFL, doping in MLB, sexual assault in women’s gymnastics, and anticompetitive practices in multiple sports. He remarked that the Subcommittee’s hearing and investigation is ultimately not about the game of golf and is instead about the ways that an authoritarian government can use its wealth to capture U.S. institutions. He concluded that the Subcommittee’s role in overseeing the PGA Tour’s proposed merger with LIV Golf is both legitimate and imperative.

Full Committee Ranking Member Rand Paul (R-KY):

• Ranking Member Paul asserted that nothing in Section 8 of Article I of the U.S. Constitution permits Congress to intervene or involve itself in private contractual negotiations.

Subcommittee Chairman Richard Blumenthal (D-CT):

• Chairman Blumenthal acknowledged that while Section 8 of Article I of the U.S. Constitution may not explicitly authorize Congressional intervention in private contractual negotiations, he stated that many federal laws (including antitrust and consumer protection laws) involve the protection of public and individual interests.

Sen. Rick Scott (R-FL):

• Sen. Scott highlighted how the PGA Tour is headquartered within his state of Florida and commented that golf is important to Florida’s economy. He also acknowledged that the PGA Tour will face significant challenges negotiating a deal with LIV Golf given how the negotiations are receiving public scrutiny. He then asked the witnesses to discuss the importance of golf to the U.S.
  • Mr. Price mentioned how the PGA Tour conducts ten tournaments within Florida that generate over $30 million for charity each year. He testified that the PGA Tour’s tournaments within Florida have cumulatively generated $800 million for charity and that the PGA Tour’s annual economic impact in Florida is over $800 million. He remarked that the PGA Tour is working to protect these activities. He stated that the PGA Tour’s ability to move from a framework agreement to a permanent agreement with LIV Golf (in which the PGA Tour maintains absolute control over golf) would enable the PGA Tour to continue and expand these activities. He highlighted how the PGA Tour is in 34 states and has an economic impact of over $4 billion. He stated that the PGA Tour could significantly increase this economic impact if it can reach a final agreement with LIV Golf.
  • Mr. Dunne described golf as a “force of good” that can promote beneficial interactions between people from different backgrounds and countries.

Sen. Roger Marshall (R-KS):

• Sen. Marshall asked Mr. Price to identify which parties would sacrifice money and which parties would sacrifice power as part of the proposed merger between PGA Tour and LIV Golf.
  • Mr. Price stated that the PGA Tour had faced two options. He indicated that the first option involved LIV Golf (which is backed by PIF) taking over professional golf. He indicated that the second option involved the PGA Tour continuing to lead professional golf in accordance with its values.
• Sen. Marshall interjected to ask Mr. Price to identify which parties would sacrifice money and which parties would sacrifice power as part of the proposed merger between PGA Tour and LIV Golf.
  • Mr. Price remarked that the proposed merger between the PGA Tour and LIV Golf would result in the PGA Tour maintaining its current position. He also asserted that this proposed merger would benefit the PGA Tour’s players and charities. He stated that no parties would be made worse off from this merger.
• Sen. Marshall interjected to ask Mr. Price to indicate whether the proposed merger between the PGA Tour and LIV Golf would cause any entities to lose money.
  • Mr. Price answered no. He remarked that this proposed merger between the PGA Tour and LIV Golf would fix a fracture within professional golf.
• Sen. Marshall asked Mr. Dunne to identify which parties would sacrifice money and which parties would sacrifice power as part of the proposed merger between the PGA Tour and LIV Golf.
  • Mr. Dunne remarked that the PGA Tour would be the “winner” in its proposed merger with LIV Golf because this merger would enable the PGA Tour to uphold its standards and tradition.
• Sen. Marshall interjected to ask Mr. Dunne to confirm that the proposed merger between the PGA Tour and LIV Golf would not cause any individuals to lose money or power.
  • Mr. Dunne commented that the settling of the litigation between the PGA Tour and LIV Golf would cause the lawyers involved in the dispute to lose money.
• Sen. Marshall asked Mr. Dunne to identify the parties that would gain money and power as part of the proposed merger between the PGA Tour and LIV Golf.
  • Mr. Dunne remarked that the proposed merger between the PGA Tour and LIV Golf would allow for the PGA Tour to remain intact and become more powerful. He also expressed hope that this merger would provide PIF Governor Yasir Al-Rumayyan with a more productive role in the game of golf. He commented that the PGA Tour’s product is “vastly superior” to LIV Golf’s product.
• Sen. Marshall asked Mr. Price to identify the parties that would gain money and power as part of the proposed merger between the PGA Tour and LIV Golf.
  • Mr. Price remarked that a final merger agreement between the PGA Tour and LIV Golf would benefit the PGA Tour’s constituents, golfers, fans, sponsors, and charities.
• Sen. Marshall then discussed how the PGA Tour had negotiated its framework agreement with LIV Golf in secret and noted how the announcement of this framework agreement had surprised some PGA Tour members. He asked Mr. Dunne to indicate how he had reacted to the announcement of the framework agreement between the PGA Tour and LIV Golf.
  • Mr. Dunne mentioned how he was involved in the PGA Tour’s negotiation of its framework agreement with LIV Golf.
• Sen. Marshall interjected to ask Mr. Dunne to discuss how the PGA Tour’s members had reacted to the announcement of the framework agreement between the PGA Tour and LIV Golf.
  • Mr. Dunne stated that the announcement of the framework agreement between the PGA Tour and LIV Golf had “stunned” the PGA Tour’s members. He described the rollout of this announcement as misleading and inaccurate. He emphasized that the PGA Tour and LIV Golf have not yet reached a final deal to merge and that the two organizations have merely agreed to settle their litigation and continue negotiating a broader agreement. He noted how the PGA Tour must now pursue its negotiations with LIV Golf with significant outside scrutiny, which he commented would make it more difficult for the two organizations to reach a final deal. He expressed the PGA Tour’s resolve to reach a final agreement with LIV Golf.
• Sen. Marshall then criticized the Subcommittee for its focus on the proposed merger between the PGA Tour and LIV Golf and asserted that Congress should instead focus on more pressing matters. He also stated that Congress should focus more on the “sportswashing” efforts of China. He asserted that China’s recent hosting of the Olympics was meant to deflect from their enslavement of Muslims, U.S. farmland purchases, and research into bioterrorism weapons. He called on the Subcommittee to pursue investigations into China’s current actions and other more pressing matters.

Sen. Josh Hawley (R-MO):

• Sen. Hawley expressed interest in determining the amount of money that the PGA Tour has received from China. He asked Mr. Price to discuss the PGA Tour China Series.
  • Mr. Price indicated that the PGA Tour China Series had last operated in 2019. He testified that the PGA Tour has no plans to continue operating this series.
• Sen. Hawley asked Mr. Price to indicate whether the PGA Tour currently has a presence in China.
  • Mr. Price answered no.
• Sen. Hawley referenced a statement from PGA Tour Executive Greg Gilligan indicating that the PGA Tour China is partnering with Shankai Sports on the PGA Tour China Series. He asked Mr. Price to clarify whether this partnership is occurring.
  • Mr. Price stated that he did not know when Mr. Gilligan had made the statement that Sen. Hawley had referenced. He reiterated that the PGA Tour has not conducted the PGA Tour China Series since 2019.
• Sen. Hawley asked Mr. Price to confirm that the PGA Tour had recently signed an agreement to conduct a 20-year series in China.
  • Mr. Price reiterated that the PGA Tour has not conducted the PGA Tour China Series since 2019.
• Sen. Hawley asked Mr. Price to indicate whether the PGA Tour had taken $45 million in financing from Yao Capital to support the PGA Tour China Series.
  • Mr. Price answered no.
• Sen. Hawley mentioned how a PGA Tour spokesperson had indicated that the PGA Tour owns and operates the PGA Tour China Series and that the General Administration of Sport of China and the China Golf Association supports the PGA Tour China Series. He asked Mr. Price to indicate whether the PGA Tour China Series still exists. He further asked Mr. Price to indicate when the PGA Tour China Series had been shut down if the organization no longer exists.
  • Mr. Price testified that the PGA Tour China Series has not operated since 2019.
• Sen. Hawley asked Mr. Price to indicate whether the PGA Tour had returned the money it had received from China.
  • Mr. Price stated that the PGA Tour had not received $45 million for its operations in China. He testified that he does not recall the specific details regarding the PGA Tour’s agreement for its Chinese operations. He mentioned how the PGA Tour had received a sanctioning fee for its work in China and indicated that a Chinese operator had managed the PGA Tour’s events in China. He further expressed his willingness to follow-up with Sen. Hawley regarding the specific details of the PGA Tour’s agreement for its Chinese operations.
• Sen. Hawley noted how Chinese private equity firm Yao Capital had provided a $45 million investment to finance the deal between the PGA Tour and Shankai Sports. He indicated that Yao Capital has direct ties to the Chinese Communist Party (CCP). He called this connection concerning and asked Mr. Price to indicate whether he finds Yao Capital’s connection to the CCP concerning.
  • Mr. Price stated that the PGA Tour is no longer operating in China and expressed his willingness to follow-up with Sen. Hawley regarding the specific details of the PGA Tour’s agreement for its Chinese operations. He also stated that Yao Capital’s $45 million investment had gone directly to an operator in China (rather than the PGA Tour).
• Sen. Hawley stated that the PGA Tour had engaged in a deal with a Chinese company to execute a series of events. He asked Mr. Price to confirm that these events had occurred.
  • Mr. Price confirmed that the PGA Tour had helped to support several events in China for a series of years.
• Sen. Hawley asked Mr. Price to indicate whether the PGA Tour will conduct future business in China, whether the PGA Tour has any contracts with Chinese companies, and whether the PGA Tour will operate future events in China.
  • Mr. Price testified that the PGA Tour has no current plans to continue the PGA Tour China Series.
• Sen. Hawley asked Mr. Price to clarify whether the PGA Tour is considering operating other series within China.
  • Mr. Price testified that the PGA Tour has no present plans to operate other series within China.
• Sen. Hawley asked Mr. Price to indicate whether the PGA Tour has condemned China’s genocide against their Uyghur population.
  • Mr. Price remarked that the PGA Tour “firmly” supports human rights and is very concerned over China’s actions. He indicated that while the PGA Tour does not generally opine on these issues, he stated that the PGA Tour does not condone China’s activities toward their Uyghur population.
• Sen. Hawley asked Mr. Price to indicate whether the PGA Tour would speak out against the persecution and internment of Uyghurs in China. He noted how the PGA Tour has conducted business and events in China and has accepted money from Chinese entities.
  • Mr. Price remarked that the PGA Tour does not condone and does not support China’s activities regarding their Uyghur population.
• Sen. Hawley then discussed how the PGA Tour had spent over six figures in one quarter of 2022 to lobby Congress on the “Saudi golf league proposals.” He asked Mr. Price to explain these lobbying expenditures.
  • Mr. Price discussed how the PGA Tour had educated members of Congress on PIF’s involvement with LIV Golf.
• Sen. Hawley asked Mr. Price to clarify how the PGA Tour wanted Congress to respond to the launch of LIV Golf.
  • Mr. Price stated that the PGA Tour had wanted Congress to use their current powers to help preserve the PGA Tour.
• Sen. Hawley stated that the PGA Tour had lobbied Congress against PIF’s involvement in professional golf prior to the PGA Tour’s acceptance of $1 billion from PIF.
  • Mr. Price remarked that the PGA Tour had faced two choices. He indicated that the first choice involved having PIF take over and operate professional golf. He indicated that the second choice involved maintaining the PGA Tour’s leadership of professional golf in accordance with its mission and values and for the benefit of its players and charity.
• Sen. Hawley then asked Mr. Price to indicate why the PGA Tour had not disclosed its activities and its partnership with Yao Capital and Shankai Sports in its Form 990 filing with the IRS. He also asked Mr. Price to confirm that the PGA Tour is a tax-exempt organization.
  • Mr. Price indicated that the PGA Tour is a 501(c)(6) tax-exempt organization.
• Sen. Hawley noted how the PGA Tour must file Form 990 with the IRS as a tax-exempt organization, which includes Schedule F. He indicated that Schedule F requires filers to disclose any activities conducted overseas, including unrelated trade or business program services, fundraising activities, and investments. He added that Schedule F requires filers to disclose their maintenance of offices, employees, and agents for the purpose of conducting the aforementioned activities. He asked Mr. Price to explain why the PGA Tour’s Form 990 filling had not disclosed any information regarding the organization’s activities in China.
  • Mr. Price remarked that the PGA Tour intends to comply with all IRS disclosure requirements. He stated that the PGA Tour would work to correct any disclosure errors on its end.
• Sen. Hawley asked Mr. Price to indicate whether the PGA Tour had attempted to hide its activities in China.
  • Mr. Price answered no.

Subcommittee Chairman Richard Blumenthal (D-CT):

• Chairman Blumenthal indicated that while the PGA Tour has not yet reached a final agreement with LIV Golf, he indicated that the PGA Tour is no longer engaged in litigation against LIV Golf. He stated that the PGA Tour is now free to pursue various avenues to raise funds, including through an initial public offering (IPO), private equity firms, or the PGA Tour’s own golfers. He asked Mr. Price to confirm his characterization of the PGA Tour’s current fundraising options.
  • Mr. Price remarked that the PGA Tour would face the threat of LIV Golf recruiting its top golfers if the PGA Tour was to pursue an alternative fundraising option. He emphasized that PIF’s $700 billion in assets is backing LIV Golf.
• Chairman Blumenthal interjected to note that golfers have remained with the PGA Tour, despite receiving offers from LIV Golf. He highlighted how golfer Tiger Woods had rejected an offer of $700 million to join LIV Golf. He applauded the golfers that had remained loyal to the PGA Tour. He asserted that most Americans would support the PGA Tour over LIV Golf if given the opportunity. He asked Mr. Dunne to indicate whether he agrees with this assertion.
  • Mr. Dunne remarked that the PGA Tour has a contractual obligation to reach a deal that serves the organization’s interests. He commented that the public nature of the negotiations between the PGA Tour and LIV Golf creates challenges for reaching a final agreement between the two organizations. He stated that the PGA Tour may not ultimately reach a deal with LIV Golf and that the PGA Tour would need to pursue alternative fundraising options under this scenario.
• Chairman Blumenthal remarked that the PGA Tour still has the choice to resist Saudi Arabia’s attempts to enter the professional golf space. He reiterated his assertion that Americans would support the PGA Tour over LIV Golf if given the opportunity. He expressed his disapproval of the PGA Tour’s current plans to partner with LIV Golf to form a new professional golf entity and described these plans as a “surrender.” He stated that the PIF’s equity ownership interest in the newly created entity would provide Saudi Arabia with financial dominance over the entity. He remarked that the framework agreement’s non-disparagement clause would prevent the agreement’s parties from making, publishing, or communicating any defamatory or disparaging remarks, comments, or statements concerning the agreement’s other parties and affiliates. He asserted that the framework’s non-disparagement clause is among the broadest non-disparagement clauses that he had ever seen during his legal career. He recounted how the National Basketball Association (NBA) had supported the general manager of the Houston Rockets after the general manager had expressed support for Hong Kong in 2019. He noted how the NBA had provided this support, despite China’s decision to impose significant economic costs on the league in response to this support. He asked Mr. Price to commit that the PGA Tour would not punish any of its members that choose to criticize Saudi Arabia or human rights situations throughout the world, regardless of whether the PGA Tour enters into a final agreement with LIV Golf (and PIF by extension).
  • Mr. Price stated that the PGA Tour’s framework agreement with LIV Golf enables the PGA Tour’s golfers to express their views.
• Chairman Blumenthal interjected to suggest that Mr. Price confirm his statement with PIF Governor Yasir al-Rumayyan. He noted how the PGA Tour is a membership organization. He commented that the PGA Tour’s members may face liability if the members criticize Saudi Arabia.
  • Mr. Price remarked that the PGA Tour interprets its framework agreement with LIV Golf as providing PGA Tour golfers with the freedom to express their opinions.
• Chairman Blumenthal asked Mr. Price to commit to having the PGA Tour protect the rights of its golfers to express their opinions (including through litigation if necessary).
  • Mr. Price noted that the PGA Tour is a membership organization and stated that the PGA Tour views the interests of its members as very important. He added that the PGA Tour would try to protect the interests of its members.
• Chairman Blumenthal asserted that Mr. Price should have answered his question affirmatively.
  • Mr. Price stated that the PGA Tour would protect its golfers. He also stated that the PGA Tour would not recommend any definitive agreement to its Policy Board for approval if the agreement prevents PGA Tour golfers from expressing their opinions.
• Chairman Blumenthal expressed his dissatisfaction with Mr. Price’s response for not being robust enough. He then asked Mr. Price to confirm that the PGA Tour had been the party that had publicly disclosed the framework agreement between the PGA Tour and LIV Golf.
  • Mr. Price confirmed that the PGA Tour had been the party that had publicly disclosed the framework agreement between the PGA Tour and LIV Golf.
• Chairman Blumenthal asked Mr. Price to confirm that Congress had not infringed on the privacy of the negotiations between the PGA Tour and LIV Golf.
  • Mr. Price stated that the PGA Tour had disclosed its framework agreement with LIV Golf to the Committee and then had subsequently disclosed the framework agreement to the public. He also emphasized that this framework agreement is not a final agreement. He stated that the PGA Tour would not move to a definitive agreement unless the PGA Tour is in complete control of the newly created entity to manage professional golf. He indicated that this new entity would be a PGA Tour subsidiary that is controlled by the PGA Tour’s Policy Board and is operated for the benefit of all of the PGA Tour’s constituents. He elaborated that these constituents include the PGA Tour’s golfers, fans, sponsors, and charities. He remarked that the PGA Tour would not recommend the approval of a final agreement that did not meet these conditions. He added that the PGA Tour’s Policy Board would not approve an agreement that did not meet these conditions.
• Chairman Blumenthal reiterated that PIF would be the dominant owner of the newly created entity to govern professional golf envisioned under the framework agreement between the PGA Tour and LIV Golf. He emphasized that PIF would have economic control over this new entity. He stated that the PGA Tour had “surrendered” to LIV Golf because PIF has more money than the PGA Tour. He then asked Mr. Price to commit to not having the PGA Tour host events in China moving forward.
  • Mr. Price remarked that he cannot make indefinite commitments on behalf of the PGA Tour. He stated however that the PGA Tour has no plans involving China for the “foreseeable future.”
• Chairman Blumenthal stated that the newly established entity for overseeing professional golf would determine whether the PGA Tour would host events in China.
  • Mr. Price remarked that the PGA Tour would have full control over this new entity, including the scheduling and location of this entity’s tournaments. He stated that the PGA Tour would not recommend the approval of a final agreement between itself and LIV Golf to its Policy Board if the final agreement does not provide the PGA Tour with this control.
• Chairman Blumenthal asked Mr. Price to commit to having no PGA Tour events in Russia.
  • Mr. Price reiterated that he cannot make indefinite commitments on behalf of the PGA Tour. He stated however that the PGA Tour does not have any plans to conduct events in Russia.
• Chairman Blumenthal then asked Mr. Price to discuss the PGA Tour’s current assets.
  • Mr. Price testified that the PGA Tour’s gross assets amount to approximately $3 billion and that the PGA Tour’s net assets amount to approximately $1.3 billion.
• Chairman Blumenthal noted how the PGA Tour had brought in over $1.5 billion in revenue in 2021 and indicated that less than 3 percent of this revenue was expensed as charitable grants. He asked Mr. Price to explain where the remaining 97 percent of the PGA Tour’s revenue in 2021 had gone.
  • Mr. Price remarked that the rest of this revenue would have involved the cost to produce the revenue. He testified that the PGA Tour’s largest cost is its competition prize money for golfers playing in tournaments.
• Chairman Blumenthal asked Mr. Price to indicate how much of the PGA Tour’s revenues had gone to its golfers.
  • Mr. Price stated that he would need to follow-up with Chairman Blumenthal regarding how much money the PGA Tour had distributed to golfers in 2021. He testified that the PGA Tour would distribute almost $1 billion to its golfers in 2023.
• Chairman Blumenthal asked Mr. Price to indicate how much revenue the PGA Tour would receive in 2023.
  • Mr. Price indicated that the PGA Tour’s gross revenues in 2023 are approximately $2.1 billion.
• Chairman Blumenthal asked Mr. Price to indicate whether the PGA Tour’s revenues that are not distributed to golfers would go to producing the PGA Tour’s tournaments.
  • Mr. Price stated that the PGA Tour’s revenues that are not distributed to golfers would cover the cost of producing the tournaments and the cost of generating revenue. He added that some of this revenue would be distributed to charities. He further noted how the PGA Tour is a 501(c)(6) trade association and indicated that the PGA Tour’s mission is to generate economic opportunities for its players. He testified that the PGA Tour has voluntarily structured its tournaments in a way so that the net proceeds of these tournaments go to charity. He indicated that the 3 percent of the PGA Tour’s revenues that went toward charitable expenses in 2021 did not include the net proceeds generated by PGA Tour tournaments. He discussed how the PGA Tour partners with 501(c)(3) organizations and explained that these partnerships had enabled the PGA Tour to generate over $215 million for charities in 2022. He added that the PGA Tour had generated over $3.6 billion for charities cumulatively.
• Chairman Blumenthal asked Mr. Price to confirm that the PGA Tour owns many of its tournaments (including the Travelers Championship in Connecticut).
  • Mr. Price indicated that the PGA Tour partners with a 501(c)(3) organization on the Travelers Championship and that this organization conducts this particular tournament.
• Chairman Blumenthal asked Mr. Price to indicate who owns the Travelers Championship.
  • Mr. Price indicated that the PGA Tour conducts the competition for the Travelers Championship. He explained however that a local charity organization in Hartford, Connecticut sells the Tournament’s tickets, hospitality, and sponsorship. He noted how the net proceeds from the Travelers Championship (which are approximately $2 million annually) go toward charities in the Hartford, Connecticut community.
• Chairman Blumenthal asked Mr. Price to explain why the PGA Tour requires $1 billion in funding from Saudi Arabia given how the PGA Tour has ended its litigation with LIV Golf and receives nearly $3 billion in annual revenue.
  • Mr. Price remarked that the PGA Tour did not seek out funding from Saudi Arabia. He stated that LIV Golf had posed an existential threat to the PGA Tour.
• Chairman Blumenthal interjected to comment that the PGA Tour could have secured funding from alternative sources beyond Saudi Arabia.
  • Mr. Price stated that the PGA Tour’s pursuit of alternative funding sources would have caused the PGA Tour to relinquish its control over professional golf. He stated that the PGA Tour’s pursuit of an agreement with LIV Golf enables the PGA Tour to preserve its future leadership over the game of golf.
• Chairman Blumenthal interjected to assert that the PGA Tour could seek to maintain its independence without having the PGA Tour involve itself with Saudi Arabia.
  • Mr. Price remarked that the PGA Tour’s pursuit of independence would cause it to face the continued threat of LIV Golf recruiting the PGA Tour’s golfers. He emphasized that LIV Golf has the backing of PIF and that PIF has $700 billion. He asserted that PIF is operating LIV Golf in an “irrational economic manner.”
• Chairman Blumenthal noted how the PGA Tour’s golfers had rejected hundreds of millions of dollars to remain with the PGA Tour. He expressed hope that the PGA Tour would similarly resist Saudi Arabia’s attempted takeover of professional golf.

Subcommittee Ranking Member Ron Johnson (R-WI):

• Ranking Member Johnson first called it inappropriate for Subcommittee Chairman Richard Blumenthal (D-CT) to ask the witnesses to make commitments regarding their future actions beyond following the law. He stated that the PGA Tour is a private organization that must run their league for the benefit of their players and fans. He then remarked that the PGA Tour would never have sought additional funding had LIV Golf not been formed. He stated that the PGA Tour is only seeking out funding from PIF as an accommodation for PIF to become involved in the PGA Tour. He asserted that the PGA Tour’s failure to offer PIF this involvement would have led LIV Golf to continue poaching the PGA Tour’s golfers until the PGA Tour became no longer viable. He asked Mr. Dunne to indicate whether he agrees with this characterization of the PGA Tour’s situation.
  • Mr. Dunne remarked that the PGA Tour had not actively pursued a deal with Saudi Arabia.
• Ranking Member Johnson interjected to comment that the PGA Tour had been “highly reluctant” to reach out to Saudi Arabia.
  • Mr. Dunne remarked that the PGA Tour had decided to pursue negotiations with Saudi Arabia because Saudi Arabia does not face any economic or time constraints in their management of LIV Golf. He elaborated that Saudi Arabia does not need to make a profit from LIV Golf within the near term, which makes it difficult for the PGA Tour to compete with LIV Golf. He also noted how LIV Golf had initiated litigation against the PGA Tour and had poached the PGA Tour’s golfers. He asserted that LIV Golf’s entire existence is based on continuing to poach the PGA Tour’s golfers.
• Ranking Member Johnson stated that the PGA Tour had faced an existential threat from LIV Golf. He highlighted how the PGA Tour had spent about $50 million on litigation against LIV Golf. He noted that while the PGA Tour had experienced some favorable court rulings in their litigation against LIV Golf, he stated that the PGA Tour’s victory in this litigation was not a certainty. He remarked that the PGA Tour was in a difficult situation and had been able to achieve a mutually beneficial agreement with LIV Golf. He acknowledged that there exist concerns that Saudi Arabia is using this proposed merger as a means of “sportswashing” their unsavory activities. He remarked however that the PGA Tour faces significant uncertainties and a final deal between the PGA Tour and LIV Golf is not guaranteed. He stated that the PGA Tour’s failure to reach a deal with LIV Golf would result in LIV Golf continuing to poach the PGA Tour’s golfers. He remarked that this continued poaching of the PGA Tour’s golfers would eventually cause the PGA Tour to collapse. He also asserted that LIV Golf’s dominance of professional golf would result in a more money-focused environment, which would destroy the game of golf. He asked Mr. Dunne to indicate whether he agrees with this characterization of the PGA Tour’s situation.
  • Mr. Dunne discussed how golf is a difficult game to play and stated that it can be difficult for golfers to reject significant financial offers to leave the PGA Tour. He remarked that the PGA Tour wants to support its golfers that had rejected offers from LIV Golf to join their league. He expressed the PGA Tour’s commitment to support its golfers.
• Ranking Member Johnson also noted how PIF appears to want to compensate the golfers that had remained part of the PGA Tour as part of a final agreement between LIV Golf and the PGA Tour.
  • Mr. Dunne confirmed that PIF is interested in compensating the golfers that had remained part of the PGA Tour as part of a final agreement between LIV Golf and the PGA Tour.
• Ranking Member Johnson stated that he does not want to ruin a potential deal between the PGA Tour and LIV Golf. He described the negotiation between the two organizations as very delicate and commented that this negotiation faces uncertainty. He remarked that the PGA Tour was in a bad situation and that the PGA Tour appears to now be pursuing a mutually beneficial deal for both the PGA Tour and LIV Golf. He noted how this deal would provide Saudi Arabia with some involvement in professional golf while maintaining the PGA Tour’s control over professional golf. He contended that Congress should provide the PGA Tour and LIV Golf with flexibility to negotiate a deal. He commented however that Congress may need to review the deal between the two organizations after the deal has been finalized. He stated that the PGA Tour has pure motivations and is simply seeking to preserve the game of golf and benefit their stakeholders. He provided the witnesses with an opportunity to respond to his comments.
  • Mr. Price expressed agreement with Ranking Member Johnson’s comments. He remarked that the PGA Tour is attempting to negotiate a deal that preserves its leadership role in professional golf so that it can fulfill its mission for its golfers and charities. He stated that the PGA Tour would not recommend a definitive agreement for approval if it cannot achieve this objective.
• Ranking Member Johnson remarked that the PGA Tour’s failure to achieve a deal with LIV Golf would result in PIF continuing to fund LIV Golf’s poaching of the PGA Tour’s golfers. He also noted how the careers of golfers can be very tenuous, which makes LIV Golf’s offers to golfers very attractive.
  • Mr. Dunne expressed agreement with Ranking Member Johnson’s statements and noted how many golfers that had joined LIV Golf had expressed such sentiments. He expressed appreciation for the Subcommittee’s concerns regarding the deal between the PGA Tour and LIV Golf. He commented that these concerns would help guide the PGA Tour in its negotiations with LIV Golf. He stated that the PGA Tour intends to reward the players that had remained loyal to the PGA Tour as part of any final agreement with LIV Golf. He added that the PGA Tour is seeking to benefit its sponsors and charities a part of a final agreement.
• Ranking Member Johnson reiterated that he understands the challenges that the PGA Tour currently faces and wished the PGA Tour luck in their negotiations with LIV Golf.

Sen. Tom Carper (D-DE):

• Sen. Carper remarked that the proposed framework agreement between the PGA Tour and PIF is a “complex issue” that would likely impact the game of professional golf for decades. He added that this proposed framework agreement may set a precedent for other U.S. sports leagues. He acknowledged however that there remain many uncertainties regarding a potential merger between the PGA Tour and PIF. He then discussed how the PGA Tour has contributed millions of dollars to charities, including to charities in Wilmington, Delaware. He highlighted how the PGA Tour’s BMW Championship had been played in Wilmington, Delaware in 2022 and that this event had raised money for the Evans Scholars Foundation. He explained that this Foundation provides tuition and housing assistance for low-income college students that work as caddies. He expressed his appreciation for the PGA’s Tour’s charitable efforts in Delaware. He raised concerns however that Saudi Arabia’s human rights record runs counter to the PGA Tour’s stated values of inclusion and respect. He asked the witnesses to indicate whether they are concerned that the proposed framework agreement between the PGA Tour and LIV Golf would provide the Saudi Arabian government with the opportunity to hide their human rights records behind the PGA Tour’s reputation. He also asked the witnesses to indicate whether a final agreement between the two organizations would provide PGA Tour golfers with the ability to freely discuss Saudi Arabia’s human rights record.
  • Mr. Price remarked that the PGA Tour would maintain the right of its golfers to freely discuss Saudi Arabia’s human rights record as part of any final agreement with LIV Golf. He expressed the PGA Tour’s support for human rights and universal access to the game of golf. He testified that the PGA Tour would only move forward with a definitive agreement with LIV Golf if the PGA Tour would remain in complete control over professional golf. He also stated that golf tournaments must continue to operate in alignment with the PGA Tour’s mission and values.
  • Mr. Dunne expressed agreement with the previous comments from Sen. Carper and Mr. Price. He remarked that the PGA Tour’s control over professional golf will be a critical element of any definitive agreement between the PGA Tour and LIV Golf. He asserted that a definitive agreement that did not provide the PGA Tour with control over professional golf would not be viable.

Sen. Roger Marshall (R-KS):

• Sen. Marshall noted how the PGA Tour had faced allegations of violating antitrust laws as part of their dispute with LIV Golf. He asked the witnesses to discuss how the PGA Tour’s attorneys had advised the organization on antitrust matters related to its proposed merger with LIV Golf. He also asked the witnesses to indicate whether this proposed merger between the PGA Tour and LIV Golf would expose the PGA Tour to antitrust scrutiny from regulators.
  • Mr. Price mentioned how the PGA Tour had received scrutiny on antitrust grounds regarding their suspension of golfers that had joined LIV Golf. He testified that the PGA Tour had received notice from antitrust regulators that the framework agreement between the PGA Tour and LIV Golf would receive scrutiny. He expressed the PGA Tour’s intention to fully cooperate with this antitrust investigation. He remarked that the establishment of a definitive agreement between the PGA Tour and LIV Golf would “heal a fracture in golf.” He commented that this “fracture” could have resulted in reduced fan interest in golf, a diminished golf product, and fewer opportunities for professional golfers.
• Sen. Marshall interjected to ask Mr. Price to indicate whether the PGA Tour’s proposed merger with LIV Golf would either increase or decrease the PGA Tour’s risk of receiving antitrust scrutiny.
  • Mr. Price noted how antitrust regulators are reviewing the PGA Tour’s proposed merger with LIV Golf. He stated that this proposed merger should not violate antitrust laws and rules. He reiterated that the PGA Tour intends to fully cooperate with this antitrust investigation.
• Sen. Marshall then asked Mr. Dunne to indicate whether some golf venues benefit from the PGA Tour while other golf venues benefit from LIV Golf.
  • Mr. Dunne remarked that local communities will benefit from PGA Tour tournaments. He noted that while venues hosting LIV Golf events will make money, he expressed uncertainty as to whether LIV Golf events have the same crowd sizes as PGA Tour tournaments.
• Sen. Marshall asked the witnesses to indicate whether the PGA Tour had been concerned over LIV Golf’s use of any particular venues.
  • Mr. Dunne testified that he had never heard of any concerns over LIV Golf’s venues in his conversations with other PGA Tour executives. He commented however that he is not privy to all of the PGA Tour’s discussions. He remarked that the PGA Tour’s conversations had focused on its golfers, fans, and sponsors.
  • Mr. Price also testified that he was unaware of any PGA Tour discussions regarding LIV Golf’s use of venues. He stated that the PGA Tour had been focused on LIV Golf’s efforts to recruit golfers from the PGA Tour.
• Sen. Marshall asked Mr. Price to clarify whether the PGA Tour’s golfers are contractors or employees.
  • Mr. Price indicated that PGA Tour golfers are independent contractors. He noted how PGA Tour golfers are not required to play in all of the PGA Tour’s events. He stated however that the PGA Tour’s regulations stipulate that golfers cannot play for a competing league unless the golfers obtain a conflicting event release. He indicated that the PGA Tour had suspended the golfers that had joined LIV Golf and that had not obtained conflicting event releases. He noted how the PGA Tour is a membership organization and that the PGA Tour’s members had developed these regulations. He explained that while the PGA Tour’s golfers are free to play for other golf leagues, he indicated that these golfers cannot go back and forth between golf leagues.
• Sen. Marshall lastly asked Mr. Dunne to discuss why he finds the game of golf important.
  • Mr. Dunne testified that golf has made a “huge” difference in his life and stated that golf has provided him with many personal and professional opportunities. He also discussed how the game of golf supports interpersonal interactions and how the game’s global nature contributes to these interactions.

Sen. Josh Hawley (R-MO):

• Sen. Hawley discussed how the PGA Tour had announced a 20-year agreement in 2018 for a new entity called the PGA Tour China Series. He noted that the PGA Tour owns and operates the PGA Tour China Series and that the General Administration of Sport of China and the China Golf Association supports this entity. He indicated that the General Administration of Sport of China is part of the Chinese government. He asked Mr. Price to indicate whether the PGA Tour China Series still exists.
  • Mr. Price stated that he would need to follow-up with Sen. Hawley on his question regarding the PGA Tour China Series.
• Sen. Hawley interjected to comment that Mr. Price had previously told the Subcommittee that the PGA Tour China Series has not held any events since 2019.
  • Mr. Price noted how the PGA Tour China Series has not operated since 2019.
• Sen. Hawley interjected to comment that the PGA Tour China Series has not operated since 2019 because of the COVID-19 pandemic.
  • Mr. Price confirmed that the PGA Tour China Series has not operated since 2019 because of the COVID-19 pandemic. He testified that the PGA Tour has no plans to continue the PGA Tour China Series.
• Sen. Hawley interjected to ask Mr. Price to indicate whether the PGA Tour China Series had actually ceased operations because of the COVID-19 pandemic. He noted how the PGA Tour had events scheduled in China in 2022. He asked Mr. Price to indicate whether the PGA had suspended its business arrangements in China.
  • Mr. Price stated that he would need to confirm the status of the PGA Tour’s business contracts in China.
• Sen. Hawley interjected to assert that Mr. Price had made conflicting statements to the Subcommittee. He elaborated that Mr. Price had stated that the PGA Tour China Series has ceased operations and that the PGA Tour still maintains a business arrangement in China. He expressed interest in determining whether the PGA Tour still maintains a 20-year business agreement with Chinese entities to conduct PGA Tour events in China. He also noted how the PGA Tour had officials living in China to facilitate PGA Tour events in China. He asked Mr. Price to indicate whether the PGA Tour China Series still exists.
  • Mr. Price stated that he would need to confirm the status of the PGA Tour’s business contracts in China. He expressed his belief that these contracts are currently being enforced. He expressed his willingness to follow-up with Sen. Hawley on this topic. He then testified that the PGA Tour has not operated in China since 2019 and that the PGA Tour has no plans to continue the PGA Tour China Series.
• Sen. Hawley asked Mr. Price to clarify whether the PGA Tour’s decision to not continue the PGA Tour China Series is contingent on the continued existence of COVID-19.
  • Mr. Price stated that the PGA Tour does not plan to continue the PGA Tour China Series, regardless of whether COVID-19 continues to exist. 
• Sen. Hawley asked Mr. Price to explain why the PGA Tour does not plan to continue the PGA Tour China Series.
  • Mr. Price stated that the PGA Tour does not plan to continue the PGA Tour China Series from a business standpoint.
• Sen. Hawley remarked that the Chinese government has systematically attempted to use and influence U.S. sports organizations, the U.S. media, and the U.S. entertainment industry. He recounted how China had exerted significant pressure on the NBA in 2019 after the general manager of the Houston Rockets had expressed support for Hong Kong protesters. He raised concerns that the PGA Tour has engaged in a business relationship with the Chinese government. He warned that this relationship would subject the PGA Tour and its golfers to pressures from the Chinese government. He described the Chinese government as an “evil” regime and stated that Congress must ensure that China does not co-opt U.S. institutions. He expressed interest in receiving further information regarding the status of the PGA Tour’s business agreements within China. He expressed particular interest in learning why the PGA Tour’s activities in China had not been disclosed on their IRS Form 990 filings in 2018 and 2020. He further expressed interest in receiving assurances from the PGA Tour that it would not restart the PGA Tour China Series and conduct future business involving financing from Chinese entities. He asked Mr. Price to commit to providing his requested information and assurances.
  • Mr. Price expressed his willingness to follow-up with Sen. Hawley regarding the status of the PGA Tour’s contract in China and the PGA Tour’s IRS Form 990 filings. He remarked that the PGA Tour has no intention of continuing the PGA Tour China Series. He stated that while he could not make long-term commitments on behalf of the PGA Tour, he testified that the PGA Tour has no short-term or intermediate-term plans involving events in China.
• Sen. Hawley remarked that U.S. sports leagues and businesses can no longer remain neutral regarding China given the Chinese government’s oppressive and imperial actions.

Subcommittee Chairman Richard Blumenthal (D-CT):

• Chairman Blumenthal remarked that the Subcommittee would broaden its investigation of the PGA Tour’s proposed merger with LIV Golf to include other institutions and the impact that other repressive regimes have on U.S. institutions. He recounted how the Fédération Internationale de Football Association (FIFA) had recently prohibited soccer players from wearing armbands with rainbow flags at the recent 2022 World Cup in Qatar. He indicated that it remains unclear whether Qatar had imposed this prohibition on FIFA or FIFA had voluntarily imposed this prohibition to avoid controversy. He stated however that the impact of this prohibition was a limitation of free expression. He remarked that there is a growing worldwide phenomenon of oppressive regimes restricting, punishing, torturing, imprisoning, and killing people that express their views. He expressed hope that Congress can address this phenomenon on a bipartisan basis. He asked Mr. Price to provide a commitment that the PGA Tour would never restrict the freedom of its golfers to express their opinions in response to pressure from Saudi Arabia. He commented that Saudi Arabia has a “particularly troubling” record on lesbian, gay, bisexual, transgender, and queer (LGBTQ) rights.
  • Mr. Price remarked that the PGA Tour believes that there should not exist any restrictions on participation and attendance at its events.
• Chairman Blumenthal interjected to ask Mr. Price to indicate whether he could commit that the PGA Tour would never restrict the freedom of its golfers to express their opinions in response to pressure from Saudi Arabia. 
  • Mr. Price testified that the PGA Tour would never impose any restrictions on the freedom of its golfers to express their opinions. He stated that the PGA Tour determines where it holds its events and testified that the PGA Tour would never conduct tournaments with such restrictions.
• Chairman Blumenthal asked Mr. Price to indicate whether the PGA Tour would hold an event in Saudi Arabia that involved restrictions on the freedom of expression of golfers.
  • Mr. Price answered no.
• Chairman Blumenthal then mentioned how the PGA Tour and LIV Golf had apparently prepared a side agreement providing that LIV Golf CEO Greg Norman would be terminated upon execution of the final agreement between the organizations. He asked Mr. Price to indicate whether this side agreement had ever been executed.
  • Mr. Price answered no.
• Chairman Blumenthal asked Mr. Price to indicate whether there exists an agreement that Mr. Norman will lose his present position if the PGA Tour and LIV Golf merger is consummated. He noted how the talking points prepared for PGA Commissioner Jay Monahan had indicated that Mr. Norman would lose his present position as part of a PGA Tour-LIV Golf merger.
  • Mr. Price remarked that a definitive agreement between the PGA Tour and LIV Golf would result in LIV Golf’s assets moving into a newly established PGA Tour-controlled subsidiary. He indicated that the PGA Tour would manage professional golf events under this subsidiary. He stated that the PGA Tour already possesses an event management infrastructure. He asserted that it would thus not be sensible for the PGA Tour to bring in an outside executive from LIV Golf to manage these events.
• Chairman Blumenthal asked Mr. Price to indicate whether Mr. Norman would lose his current job if the PGA Tour and LIV Golf were to reach a definitive agreement to merge.
  • Mr. Price remarked that if the PGA Tour and LIV Golf were to reach a definitive agreement to merge, then the PGA Tour would not need to retain Mr. Norman’s current position.
• Chairman Blumenthal further discussed how the Subcommittee’s review of the PGA Tour’s internal documents indicates that there are understandings and agreements between the PGA Tour and LIV Golf. He asked Mr. Price to discuss these understandings and agreements.
  • Mr. Price testified that he is unaware of any other understanding or agreements that are not reflected within the framework agreement between the PGA Tour and LIV Golf. He added that a final agreement between the two organizations must still be negotiated.
• Chairman Blumenthal asked Mr. Price to discuss the other side agreements and informal understandings between the PGA Tour and LIV Golf.
  • Mr. Price testified that he is unaware of any other side agreements or informal understandings between the PGA Tour and LIV Golf.
• Chairman Blumenthal asked Mr. Price to clarify whether he is not permitted to discuss the PGA Tour’s side agreements and informal understandings with LIV Golf or whether these side agreements and informal understanding do not exist.
  • Mr. Price reiterated his testimony that he is unaware of any other side agreements or informal understandings between the PGA Tour and LIV Golf.
• Chairman Blumenthal then asked Mr. Price to indicate when he had first been informed about the PGA Tour’s negotiations with LIV Golf regarding a potential merger.
  • Mr. Price testified that PGA Commissioner Jay Monahan had informed him shortly prior to his April 2024 meeting in London that the PGA Tour may have an opportunity to engage with PIF to settle their litigation and potentially establish a framework that would allow the PGA Tour to continue to govern professional golf.
• Chairman Blumenthal asked Mr. Price to indicate whether any of the other independent directors on the PGA Tour’s Policy Board (aside from Mr. Dunne) were informed about the conversations and negotiations between the PGA Tour and LIV Golf.
  • Mr. Price testified that PGA Tour Policy Board Chairman Ed Herlihy had been aware of the negotiations between the PGA Tour and LIV Golf.
• Chairman Blumenthal noted how PGA Tour Policy Board Chairman Ed Herlihy is the co-chairman of law firm Wachtell, Lipton, Rosen & Katz. He asked Mr. Price to indicate whether Wachtell, Lipton, Rosen & Katz had been involved in providing legal advice for the PGA Tour’s negotiations with LIV Golf.
  • Mr. Price answered affirmatively.
• Chairman Blumenthal asked Mr. Price to indicate whether Wachtell, Lipton, Rosen & Katz had represented or advised the PGA Tour in their litigation against LIV Golf.
  • Mr. Price answered affirmatively.
• Chairman Blumenthal then asked Mr. Dunne to indicate whether it is common for corporations to keep negotiations secret from their governing bodies based on his professional experience.
  • Mr. Dunne remarked that all business negotiations are unique. He noted how the framework agreement between the PGA Tour and LIV Golf had settled the litigation between the two organizations and provided a commitment to hold further negotiations. He stated that the PGA Tour was afraid that the framework agreement would have been killed if LIV Golf’s attorneys had been made aware of it.
• Chairman Blumenthal interjected to comment that most corporations trust their boards of directors with information. He noted how one member of the PGA Tour’s Policy Board had resigned because they had not been informed of the framework agreement between the PGA Tour and LIV Golf prior to its public announcement. He asked Mr. Dunne to indicate whether the PGA Tour’s secretive negotiations with LIV Golf were “pretty unique.”
  • Mr. Dunne remarked that the conversations between the PGA Tour and LIV Golf had been “very fragile.” He indicated that he did not believe that the conversations would be successful at one point. He mentioned how he had proposed that the PGA Tour engage in conversations with LIV Golf to PGA Tour Commissioner Jay Monahan and the PGA Tour Policy Board Chairman Ed Herlihy. He indicated that Chairman Herlihy had stated that Commissioner Monahan could decide whether the PGA Tour would pursue conversations with LIV Golf. He noted how Commissioner Monahan had ultimately decided to settle the PGA Tour’s lawsuit with LIV Golf and to set up future negotiations with LIV Golf.
• Chairman Blumenthal asserted that most corporate executives have a legal and moral duty to keep their boards of directors informed about their actions. He asked Mr. Dunne to explain why the PGA Tour had not fully informed its Policy Board regarding its conversations with LIV Golf. He commented that Mr. Dunne did not appear to trust the PGA Tour’s Policy Board.
  • Mr. Dunne testified that he had only attended two PGA Tour Policy Board meetings and indicated that he had joined the Policy Board in January 2023. He stated that he therefore does not fully comprehend the dynamics of the PGA Tour’s Policy Board.
• Chairman Blumenthal commented that the PGA Tour faced significant challenges when Mr. Dunne had joined its Policy Board.
  • Mr. Dunne asserted that LIV Golf had been responsible for the PGA Tour’s significant challenges. He stated that the PGA Tour faced constant uncertainties regarding which of its golfers would leave to join LIV Golf. He commented that LIV Golf had been very disruptive to the PGA Tour.
• Chairman Blumenthal indicated that he would need to temporarily leave the hearing to cast votes.

Subcommittee Ranking Member Ron Johnson (R-WI):

• Ranking Member Johnson asked the witnesses to indicate whether the PGA Tour’s Policy Board had objected to the fact that the framework agreement between the PGA Tour and LIV Golf had resulted in the settling of the litigation between the two organizations.
  • Mr. Dunne answered no. He testified that Randall Stephenson (who was the Policy Board member that had resigned as a result of the framework agreement) had expressed indifference to the litigation settlement. He stated however that Mr. Stephenson had been disappointed that he had not received advanced notice of the framework agreement.
• Ranking Member Johnson interjected to emphasize that the PGA Tour and LIV Golf had not yet reached a final agreement on a merger.
  • Mr. Dunne confirmed that the PGA Tour and LIV Golf had not yet reached a final agreement on a merger. He stated that the two organizations have only settled their litigation and are working on an agreement that would benefit their golfers, sponsors, and fans.
• Ranking Member Johnson remarked that the Subcommittee’s hearing is not helping the PGA Tour to reach a final agreement with LIV Golf.
  • Mr. Dunne stated that the Subcommittee’s focus on the negotiations between the PGA Tour and LIV Golf is diverting the PGA Tour’s attention away from the actual negotiations. He asserted that the PGA Tour’s need to respond to Congressional inquiries is making their negotiations with LIV Golf more difficult.
• Ranking Member Johnson remarked that the PGA Tour is not wrong to pursue a deal with LIV Golf. He asked the witnesses to respond to the criticisms that the PGA Tour’s pursuit of this deal had violated the PGA Tour’s duty to its Policy Board.
  • Mr. Price remarked that the PGA Tour had faced an existential threat from LIV Golf. He stated that the PGA Tour had pursued a deal with LIV Golf solely to preserve its existence. He commented that the PGA Tour’s continued viability would benefit the PGA Tour’s constituents, golfers, and charities. He also stated that the PGA Tour’s pursuit of a deal with LIV Golf would ensure that the PGA Tour continues its leadership position over professional golf. He then contended that the PGA Tour had needed to pursue its conversations with LIV Golf in secret. He asserted that the two organizations would not have been able to reach an agreement if the negotiations had been made public.
• Ranking Member Johnson stated that the attorneys representing LIV Golf would have likely sought to thwart attempts to settle the lawsuit between the PGA Tour and LIV Golf because this lawsuit would generate significant legal fees. He asked the witnesses to confirm that the framework agreement between the PGA Tour and LIV Golf mainly settled the lawsuit between the organizations.
  • Mr. Dunne confirmed that the framework agreement between the PGA Tour and LIV Golf mainly settled the lawsuit between the organizations.
• Ranking Member Johnson then asked the witnesses to provide an overview of the PGA Tour and to explain who the PGA Tour has duties to. He commented that the PGA Tour would likely consider the business implications of holding events in countries that engaged in activities that were unpopular among the PGA Tour’s fan base. He further asked the witnesses to discuss the benefits associated with expanding the game of golf globally.
  • Mr. Dunne noted how Saudi Arabia has 18 million people under the age of 32 and commented that the PGA Tour’s proposed merger with LIV Golf could help improve the U.S.’s reputation with this population. He further stated that the expansion of the game of golf globally would be beneficial. He then remarked that the PGA Tour is only pursuing its agreement with LIV Golf out of necessity and commented that the PGA Tour would not have actively sought out a deal with Saudi Arabia. He stated that the PGA Tour had not required additional capital and had only pursued a deal with LIV Golf because LIV Golf posed an existential threat to the PGA Tour. He discussed how the PGA Tour’s top 50 golfers are critical for the Tour’s viability and commented that the PGA Tour’s loss of these golfers would weaken sponsor interest in the Tour. He remarked that the unification of professional golf would result in improved competition and fan interest.
• Ranking Member Johnson stated that the PGA Tour’s inability to maintain its roster of top golfers would result in reduced viewership and reduced sponsor interest. He commented that these problems would ultimately diminish the PGA Tour. He noted that LIV Golf by contrast is backed by PIF and therefore does not face financial constraints for the foreseeable future.
  • Mr. Dunne stated that the PGA Tour had faced unique competition from LIV Golf. He commented that the PGA Tour’s competition with LIV Golf would have made it very difficult for the PGA Tour to continue generating large amounts of money for charities.
• Ranking Member Johnson interjected to ask Mr. Price to explain how the PGA Tour generates its revenues and to address how the PGA Tour has grown its revenues over time. He also asked Mr. Price to discuss how the PGA Tour had needed to “dramatically” increase the prize money for its events in order to retain its golfers.
  • Mr. Price remarked that the PGA Tour’s business model is predicated on media and sponsorship revenues. He testified that these two revenue streams drive over 80 percent of the PGA Tour’s gross revenues. He also mentioned how the PGA Tour generates revenues from other sources, including through admissions, hospitality, tournament licensing, and the Tournament Players Club (TPC).
• Ranking Member Johnson interjected to note that media companies could pay other golf leagues to broadcast their events. He indicated however that the PGA Tour is currently the most popular golf league.
  • Mr. Price confirmed Ranking Member Johnson’s statements. He discussed how media companies trust that the PGA Tour will have high-level golfers when they enter into media rights deals with the PGA Tour. He noted how many golfers have remained loyal to the PGA Tour and expressed the PGA Tour’s intention to reward these golfers for their loyalty. He remarked that LIV Golf’s continued recruitment of top PGA Tour golfers would impede the PGA Tour’s ability to maintain its current media and sponsorship revenues. He stated that a reduction in these revenues would pose an existential threat to the PGA Tour. He also warned that a reduction in the PGA Tour’s revenues would harm all PGA Tour golfers.
• Ranking Member Johnson remarked that the PGA Tour still faces an existential threat from LIV Golf, despite the framework agreement between the two organizations. He noted how the PGA Tour must complete a final agreement with LIV Golf by the end of 2023 to prevent LIV Golf from recruiting more of its golfers. He asked Mr. Dunne to discuss how golfers are responding to the current uncertainty surrounding the PGA Tour and LIV Golf.
  • Mr. Dunne remarked that the news of the framework agreement between the PGA Tour and LIV Golf had “shocked” the golfers, which he called understandable. He acknowledged that the announcement of this framework agreement was suboptimal. He remarked that the PGA Tour and LIV Golf should have made clear that they had agreed to settle their litigation with prejudice and pursue negotiations where LIV Golf could become a minority investor in a new entity.
• Ranking Member Johnson noted that the PGA Tour could not have kept its framework agreement with LIV Golf private. He explained that the dismissal of the lawsuits between the PGA Tour and LIV Golf would have involved a public court filing. He emphasized that the PGA Tour and LIV Golf have not yet reached a final agreement.
  • Mr. Dunne emphasized that the PGA Tour and LIV Golf do not yet have a final agreement and have simply agreed to continue negotiations. He acknowledged that the public announcement of the framework agreement between the two organizations was suboptimal and stated that the PGA Tour is not being sold to PIF. He remarked that the PGA Tour is working to develop a solution that would benefit its players and golf. He expressed hope that the PGA Tour and LIV Golf can eventually strike a final agreement. He stated that the failure to achieve a final agreement would force the PGA Tour to continue competing with LIV Golf.
• Ranking Member Johnson stated that the PGA Tour’s golfers appear to have become more accepting of the framework agreement between the PGA Tour and LIV Golf. He attributed this growing acceptance to an acknowledgment from the golfers of the PGA Tour’s difficult situation.
  • Mr. Dunne remarked that the growing understanding of the framework agreement between the PGA Tour and LIV Golf has made the PGA Tour’s golfers more receptive to the agreement. He acknowledged that the PGA Tour’s suboptimal announcement of the framework agreement had contributed to the framework agreement’s initial unpopularity.
• Ranking Member Johnson then noted that while the PGA Tour-LIV Golf framework agreement’s non-disparagement clause has drawn criticism, he contended that non-disparagement clauses are common in most agreements.
  • Mr. Dunne remarked that non-disparagement clauses are often included in framework agreements to increase the likelihood that final agreements will be reached. He commented that disparaging comments can impede negotiations of final agreements. He indicated that the non-disparagement clause within the framework agreement between the PGA Tour and LIV Golf has a very short term and stated that the non-disparagement clause would cease to exist if the two organizations ultimately cannot reach a final agreement.
• Ranking Member Johnson also stated that the PGA Tour cannot force its golfers to adhere to a non-disparagement clause. He also questioned whether the PGA Tour could require that the members of its Policy Board adhere to the non-disparagement clause within the framework agreement between the PGA Tour and LIV Golf. He asked Mr. Price to comment on the extent to which non-disparagement clauses can be enforced.
  • Mr. Price testified that the PGA Tour does not plan to take enforcement actions against any of its golfers for the expression of opinions.
• Ranking Member Johnson asked Mr. Price to comment on the extent to which non-disparagement clauses can be enforced against PGA Tour Policy Board Members or individuals (as opposed to the PGA Tour itself).
  • Mr. Price indicated that while he is not an attorney, he expressed his view that the disparagement clause within the framework agreement between the PGA Tour and LIV Golf would not prevent PGA Policy Board members from expressing their opinions.
• Ranking Member Johnson expressed his satisfaction with the answers from the witnesses to his questions.

Subcommittee Chairman Richard Blumenthal (D-CT):

• Chairman Blumenthal asked Mr. Dunne to indicate whether it is preferable for public concerns regarding the proposed PGA Tour-LIV Golf merger to be raised and considered before the two organizations enter into a binding agreement.
  • Mr. Dunne expressed his willingness to consider and address Congress’s concerns regarding the PGA Tour’s proposed merger with LIV Golf.
• Chairman Blumenthal asserted that it is preferable for the PGA Tour to be aware of the concerns regarding their potential merger with LIV Golf before the PGA Tour enters into a binding agreement with LIV Golf. He commented that this binding agreement could unfairly and illegally bind the PGA Tour, its golfers, its sponsors, and other stakeholders.
  • Mr. Dunne expressed appreciation for Congress’s interest and involvement in the PGA Tour’s proposed merger with LIV Golf.
• Chairman Blumenthal mentioned how PGA Tour golfer John Rahm had publicly indicated that many PGA Tour golfers felt betrayed by the PGA Tour’s management regarding the PGA Tour’s announcement of its framework agreement with LIV Golf. He asked Mr. Price to indicate whether other PGA Tour golfers had expressed similar concerns.
  • Mr. Price stated that the announcement of the framework agreement between the PGA Tour and LIV Golf had surprised many people (including the PGA Tour’s golfers). He attributed this surprise to the confidential nature of the negotiations that had led to this framework agreement. He remarked that the PGA Tour now must work to ensure that its golfers understand the PGA Tour’s actions and the rationale underlying these actions. He stated that the PGA Tour’s golfers are now beginning to understand why the PGA Tour had reached a framework agreement with LIV Golf and the significant benefits associated with reaching a final agreement between the PGA Tour and LIV Golf. He remarked that the PGA Tour’s golfers remain interested in the terms of the agreements between the two organizations and ensuring that the PGA Tour remains in control of professional golf moving forward.
• Chairman Blumenthal interjected to asked Mr. Price to indicate whether he has received anything in writing from any of the PGA Tour’s golfers regarding the announced framework agreement between the PGA Tour and LIV Golf.
  • Mr. Price testified that he had not personally received anything in writing from any of the PGA Tour’s golfers regarding the announced framework agreement between the PGA Tour and LIV Golf.
• Chairman Blumenthal asked Mr. Price to indicate whether the PGA Tour has received anything in writing from any of its golfers regarding the announced framework agreement between the PGA Tour and LIV Golf.
  • Mr. Price stated that he does not see everything that is sent to other PGA Tour executives. He stated that he therefore could not definitively answer Chairman Blumenthal’s question.
• Chairman Blumenthal interjected to ask Mr. Price to indicate whether he is aware of any communications in writing from the PGA Tour’s golfers regarding the announced framework agreement between the PGA Tour and LIV Golf.
  • Mr. Price remarked that such communications from the PGA Tour’s golfers could exist. He noted how the announcement of the framework agreement had surprised these golfers. He stated however that he did not know definitively whether these communications exist.
• Chairman Blumenthal asked Mr. Price to indicate whether he could make any communications in writing from the PGA Tour’s golfers regarding the announced framework agreement between the PGA Tour and LIV Golf available to the Subcommittee.
  • Mr. Price stated that the PGA Tour would make such written communications from its golfers available to the Subcommittee if the communications exist.
• Chairman Blumenthal asked Mr. Price to respond to the PGA Tour’s golfers that feel “blindsided” and “betrayed” by the PGA Tour’s announcement of a framework agreement with LIV Golf.
  • Mr. Price mentioned how the PGA Tour is working to explain to its golfers why the PGA Tour’s negotiations with LIV Golf had needed to be kept confidential and the benefits that the framework agreement with LIV Golf would provide. He stated that many PGA Tour golfers are beginning to understand why the PGA Tour had needed to pursue an agreement with LIV Golf and how this agreement would benefit golfers and the PGA Tour’s various constituents.
• Chairman Blumenthal asked Mr. Price to indicate whether all of the PGA Tour’s golfers now approve of the PGA Tour’s decision to pursue an agreement with LIV Golf.
  • Mr. Price indicated that not all of the PGA Tour’s golfers approve of the PGA Tour’s decision to pursue an agreement with LIV Golf. He commented that the PGA Tour still needs to work with its golfers on understanding this agreement. He stated however that the PGA Tour is a large membership organization that represents many golfers, which makes unanimous agreement very difficult to achieve.
• Chairman Blumenthal interjected to ask Mr. Price to indicate how many golfers had the PGA Tour notified in advance of the announcement of its framework agreement with LIV Golf.
  • Mr. Price stated that he did not believe that any of the PGA Tour’s golfers had been notified in advance of the announcement of the framework agreement between the PGA Tour and LIV Golf.
• Chairman Blumenthal emphasized that the PGA Tour is a membership organization and that the PGA Tour’s golfers are its members. He expressed astonishment that the PGA Tour had not provided any of its golfers with advanced notice that it had reached a framework agreement with LIV Golf.
  • Mr. Price noted how the framework agreement between the PGA Tour and LIV Golf had involved the settlement of the litigation between the two organizations (which is binding). He testified that the PGA Tour had told its golfers that it would undergo a process of making them fully involved in anything it does relating to the definitive agreement.
• Chairman Blumenthal then mentioned how Mr. Dunne had previously stated Saudi Arabia had been willing to make investments in LIV Golf without regard for economic profit or revenue. He asked Mr. Dunne to confirm that he was making this assertion.
  • Mr. Dunne confirmed that he had asserted that Saudi Arabia had been willing to make investments in LIV Golf without regard for economic profit or revenue.
• Chairman Blumenthal stated that Saudi Arabia appears to be interested in establishing LIV Golf as a means of improving their public image. He asked Mr. Dunne to indicate whether he agrees with this statement.
  • Mr. Dunne remarked that he could not speak to Saudi Arabia’s intentions regarding their involvement in LIV Golf. He noted how Saudi Arabia has a lot of money and commented that this large amount of money enables Saudi Arabia to engage in excessive spending without concern.
• Chairman Blumenthal interjected to remark that Saudi Arabia can disrupt professional golf based on their large amount of money. He elaborated that this large amount of money enables Saudi Arabia to not care about the economic results of their investments in LIV Golf. He stated that Saudi Arabia’s large funding advantage will enable it to maintain control over professional golf through the new professional golf entity envisioned in the framework agreement between the PGA Tour and LIV Golf. He commented that this funding advantage would eventually overpower the PGA Tour (even if the PGA Tour has more directors on this new entity’s board of directors). He expressed hope that the PGA Tour would resist the funding being offered by PIF. He raised concerns that the U.S.’s failure to resist the corrupting influence of foreign governments with large amounts of money threatens the U.S.’s democracy and freedom. He asserted that sports are central to American society, culture, self-image, and global image. He warned that golf would cease to exist if it cannot defend itself. He then mentioned how several families impacted by the 9/11 terrorist attacks are present in the hearing’s audience. He indicated that these families have requested a meeting with the PGA Tour’s leadership. He asked Mr. Dunne to commit to meeting with these families.
  • Mr. Dunne provided a commitment to meet with the families impacted by the 9/11 terrorist attacks.
• Chairman Blumenthal asked Mr. Dunne to indicate whether he has any statements to make to the families impacted by the 9/11 terrorist attacks that are in the hearing’s audience.
  • Mr. Dunne remarked that the U.S. should pursue anyone with any involvement in the 9/11 terrorist attacks with “extreme prejudice” to the fullest extent possible. He thanked previous administrations and the U.S. military for their responses to these attacks. He remarked however that the U.S. should not hate people of the same race and religion as the perpetrators of the 9/11 terrorist attacks.
• Chairman Blumenthal stated that his concerns are not regarding the Saudi Arabian people and are instead regarding the Saudi Arabian regime (which he described as autocratic and repressive). He mentioned how Saudi Arabia is torturing, imprisoning, and killing its own people based on differences, the expression of views, and gender. He also stated that Saudi Arabia is fostering the current war in Yemen and that there exists “mounting evidence” that the Saudi Arabian government had been complicit in the 9/11 terrorist attacks. He remarked that the families impacted by the 9/11 terrorist attacks are seeking justice against the Saudi Arabian regime. He noted how Mr. Dunne had just received materials regarding Saudi Arabia’s potential involvement in the 9/11 terrorist attacks and suggested that Mr. Dunne review these materials. He mentioned how he had led the bipartisan efforts to pass the Justice Against Sponsors of Terrorism Act (JASTA), which enabled families impacted by the 9/11 terrorist attacks to sue Saudi Arabia for their involvement in these attacks. He expressed hope that Mr. Dunne would support the ability of the families impacted by the 9/11 terrorist attacks to seek justice and expressed his satisfaction that Mr. Dunne had indicated his commitment to meet with these families.

Subcommittee Ranking Member Ron Johnson (R-WI):

• Ranking Member Johnson remarked that the hearing has been constructive in that it has provided the PGA Tour with an opportunity to explain the difficult situation it continues to face regarding competition from LIV Golf. He also stated that the PGA Tour appears to share many Subcommittee Member concerns. He then disputed the assertion that the PGA Tour is seeking to profit from its proposed merger with LIV Golf. He remarked that the PGA Tour had not sought to merge with LIV Golf and is instead pursuing this merger due to circumstance. He noted how PIF has $700 billion and stated that PIF could take over professional golf if the PGA Tour refuses to cooperate with them. He commented that this outcome would be “tragic” and would destroy the sport of golf. He acknowledged the challenging predicament that the PGA Tour had faced regarding competition from LIV Golf and commended the PGA Tour’s efforts to respond to this situation. He expressed hope that Congress could provide the PGA Tour with the necessary time, flexibility, and privacy to reach a final agreement with LIV Golf. He noted how Mr. Dunne had lost many work colleagues in the 9/11 terrorist attacks and commented that Mr. Dunne understands the sensitivities associated with these attacks. He remarked that the Subcommittee should entrust the PGA Tour to pursue negotiations with LIV Golf in a manner that protects the interests of PGA Tour members, the U.S., and the families impacted by the 9/11 terrorist attacks. He expressed hope that the PGA Tour could achieve a mutually beneficial agreement with LIV Golf that would also benefit the citizens of Saudi Arabia. He also expressed hope that the game of golf could be used to address cultural divides and improve the world.

Subcommittee Chairman Richard Blumenthal (D-CT):

• Chairman Blumenthal indicated that the Subcommittee would continue its inquiry into the proposed PGA Tour-LIV Golf merger and that additional witnesses appear before the Subcommittee on this matter. He asked the witnesses to indicate whether they would support having additional witnesses appear before the Subcommittee to discuss the proposed PGA Tour-LIV Golf merger.
  • Mr. Dunne answered affirmatively.
  • Mr. Price answered affirmatively.
• Chairman Blumenthal remarked that more information about the proposed PGA Tour-LIV Golf merger would enable the U.S. to better support its values and freedoms, as well as ideals of professional golf. He expressed hope that the PGA Tour would engage in robust negotiations with LIV Golf to uphold American values.