Staff Reports
The Biden Department of Justice (DOJ) is yet again meddling with the economy. This time, they are set to launch an antitrust review of the proposed deal between the PGA Tour and Saudi-backed LIV Golf. WSJ reports that this review, initiated by the DOJ, may cause a regulatory obstacle for the deal, and that any transaction that is hammered out between the rivals won’t take effect for some time. It looks like the end of the deal may be near, thanks to the Democrats who have urged the DOJ to “closely scrutinize” the PGA Tour-LIV Golf deal.
Justice Department to Investigate PGA Tour-LIV Golf Pact – WSJ https://t.co/1645jLyqfC
— Jacqui Heinrich (@JacquiHeinrich) June 15, 2023
It’s not surprising that the PGA Tour is facing an antitrust investigation as it has previously faced federal scrutiny. The PGA Tour was already being investigated by the DOJ for anticompetitive behaviour; their proposed partnership with LIV Golf can’t have helped their case.
A review of the deal was not unexpected, as lawyers have pointed out potentially problematic aspects of the deal. Statements made by PGA Tour Commissioner Jay Monahan, who said it would be good for the Tour “to take the competitor off of the board, to have them exist as a partner, not an owner,” may have worked against the PGA Tour as antitrust laws work to protect competition.
It’s ironic that the PGA Tour faced antitrust scrutiny as a result of a complaint made in August 2022 by 11 professional golfers, including Phil Mickelson, for the actions it took against the golfers, including suspension, for their participation in events with LIV Golf. It seems the DOJ has determined to use this already ongoing investigation as a way to justify their latest actions.
This isn’t the first time the PGA Tour has faced antitrust scrutiny. In 1994, the Federal Trade Commission investigated two PGA Tour rules related to players’ appearance on television, and playing in non-PGA Tour events without permission. Fortunately, the PGA Tour was not found to be in violation of any antitrust laws back then.
The PGA Tour and LIV Golf’s proposed merger may be ruined because of the interference of the DOJ. It seems that the DOJ has nothing better to do than to investigate golfing bodies and to meddle with private deals between organizations. How much longer will the DOJ keep trying to ruin business deals with their unfair involvement?
Source: Townhall
