Report: Justice Department to Review PGA Tour-LIV Golf Deal over Antitrust Concerns

On the same day the 2023 U.S. Open begins, the PGA Tour's planned merger with LIV Golf is set to be reviewed by the United States Justice Department.

Per Andrew Beaton and Louise Radnofsky of the Wall Street Journal, the Justice Department cited "antitrust concerns" when it informed the PGA Tour of the review:

"A review by the Justice Department—which had already been investigating the PGA Tour and other leading golf bodies for anticompetitive behavior—introduces uncertainty to the planned joint venture between the PGA Tour and Saudi Arabia's Public Investment Fund. It also makes it probable that any transaction that is hammered out between the rivals won't take effect for some time."

Thursday's report comes after the United States Senate announced earlier this week it opened an investigation into the proposed merger between the competing golf leagues.

Per CNN's Matt Foster, Sen. Richard Blumenthal issued letters to both the PGA Tour and LIV Golf that detailed "causes for concern and subsequently request documentation relating to the new agreement and how it came to be formed, as well as records 'referring' to the dispute between the organizations prior to the proposed partnership."

The letters also cited the "[Public Investment Fund]'s role as an arm of the Saudi government" and the PGA's "sudden and drastic reversal of position concerning LIV Golf" that warrant "serious questions regarding the reasons for and terms behind the announced agreement."

According to Beaton and Radnofsky, antitrust lawyers have "been quick to point to potentially problematic aspects of the deal" and cited comments from PGA Tour commissioner Jay Monahan about how it would be good "to take the competitor off of the board, to have them exist as a partner, not an owner."

The merger between the PGA Tour, LIV Golf and DP World Tour was announced on June 6, but details about the union were incredibly vague. All that was clear from the press release was a plan to "unify the game" and end all pending litigation between the tours.

Beaton and Radnofsky reported last week one senior PGA Tour official told employees full details of the proposed merger likely won't be known for at least a year, and there's a possibility the deal could fall apart if the sides can't agree on specific terms.

The Justice Department has been investigating the PGA Tour, USGA and Augusta National since October after golfers on the LIV circuit filed an antitrust lawsuit against the PGA Tour after they were banned from Tour-sanctioned events.