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PGA seeks to sue Saudi Fund and its chief as LIV feud widens

The PGA Tour asked a judge to let it sue Saudi Arabia’s Public Investment Fund and its chief Yasir Othman Al-Rumayyan as a dispute between it and its rival LIV Golf widens.
PGA seeks to sue Saudi Fund and its chief as LIV feud widens A pin flag during day one of the LIV Golf Invitational at the Centurion Club on 9 June 2022 in St Albans, England. (Photo: Matthew Lewis / Getty Images)
Bloomberg
By Bloomberg
25 Jan 2023
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The US golf tour is seeking to add the $676-billion sovereign wealth fund and its governor to its lawsuit that claims the Saudi Arabia-backed LIV Golf is competing unfairly by luring PGA players with millions of dollars to breach their contracts.“PIF and Mr. Al-Rumayyan have personally recruited tour players, played an active role in contract negotiations, and expressly approved each of the player contracts—all while knowing that these deals would interfere with the players’ tour contracts,” the PGA Tour said in a filing Tuesday in federal court in San Jose, California.The PGA Tour asked for a May 18 hearing on its request, which must be approved by a judge.

The fight between the rival golf tours began with 11 professional golfers, including Phil Mickelson, Talor Gooch and Matt Jones, having sued the PGA Tour in August for suspending them after they joined LIV. LIV joined the suit a month later, prompting Mickelson, Gooch and six others to withdraw. PGA then countersued, claiming LIV’s alleged interference with PGA players’ contracts harmed its brand and reputation.

LIV claims the PGA Tour is a monopolist keen on sabotaging a new rival.

The request to add the additional defendants also comes as the PGA and LIV are deadlocked over records sought by each side ahead of a trial set for January 2024. The PGA has been wrangling with PIF over information the tour wants from the fund and its governor, with a ruling on that fight expected soon.

PIF and Al-Rumayyan claimed they can’t be forced to turn over documents because they have sovereign immunity.

By adding them as defendants in the suit, they would no longer be able to claim immunity, the PGA Tour said.

The case is Mickelson v. PGA Tour Inc., 22-cv-04486, US District Court, Northern District of California (San Jose).

(Updates with hearing in fourth paragraph.)

--With assistance from Erik Larson.

© 2023 Bloomberg L.P.

Comments (1)

Keith Scott Jan 25, 2023, 09:17 AM

So an American organisation, based in a country where capitalism reigns supreme, has to resort to the courts to help it challenge the financial weight of a competing organisation. Hmm.