Date Set For Public Hearing On PGA Tour's Proposed Deal With Saudi Arabia

September is shaping up to be a big month for golf – and not just because of the two contests taking place between USA and Europe.

Behind the scenes, the PGA Tour’s proposed deal with the Saudi Arabia’s Public Investment Fund (PIF) has been scrutinised in some depth, and matters could come to head when the United States Senate hosts another public hearing on September 13.

The hearing, which is expected to focus on PIF’s investments in the United States, comes after PIF governor Yasir Al-Rumayyan’s evasions to testify before the Senate’s Permanent Subcommittee on Investigations (PSI).

The Hill reports that Al-Rumayyan once again denied a request to testify before the subcommittee.

In a letter made public last month, Connecticut Senator Richard Blumenthal of the PSI pushed back on Al-Rumayyan’s claim that he qualifies as an “inappropriate witness.”

According to Blumenthal, Al-Rumayyan and his counsel have argued he is a “minister bound by the Kingdom’s laws regarding the confidentiality of certain information” and that the subcommittee’s request for documents from PIF raises significant legal considerations due to diplomatic immunity.

However, as Blumenthal notes, this is the same claim that Al-Rumayyan unsuccessfully made in the PGA Tour’s countersuit against the Saudi-backed LIV Golf, the controversial circuit that he heads.

In February, federal magistrate judge Susan van Keulen rejected LIV’s arguments that the PIF and Al-Rumayyan were protected by sovereign immunity laws because Al-Rumayan’s conduct “falls within the commercial activity exception to the Foreign Sovereign Immunity Act.”

Al-Rumayyan brokered a framework agreement with PGA Tour commissioner Jay Monahan and board members Jimmy Dunne and Ed Herlihy.

Although not everyone welcomed the deal, it did at least put an end to litigation between LIV Golf and the PGA Tour, which had been threatening to cause long-lasting damage to the sport and its reputation.

Al-Rumayyan was invited to testify before the United States Senate in June but he declined due to scheduling issues, as did LIV Golf CEO Greg Norman.

In August’s letter, Blumenthal wrote, “Your apparent reluctance to voluntarily appear raises questions about the veracity of your previously cited scheduling conflicts.”

Blumenthal promised that the PSI will pursue all avenues to get Al-Rumayyan to talk with the group.

According to Blumenthal, the proposed PGA Tour-PIF deal “raises concerns about the Saudi government’s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution.”

It’s possible that the alliance could be reviewed by the Committee on Foreign Investment in the United States, which analyzes mergers regarding potential threats to the nation’s security.

Blumenthal has threatened to strip the tour’s tax-exempt status over the Saudi deal, although the proposed partnership between the tour and PIF would be a for-profit entity.

During the July 11 Senate hearing into the PGA Tour-PIF proposal, it was revealed that PIF will be investing over $1 billion into the new venture, and that Al-Rumayyan had sought membership with Augusta National and The R&A as part of the deal.

Al-Rumayyan, who also serves as the chairman of English soccer team, Newcastle United, is also reported to have met with The R&A at The Open in July.