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June 16 (UPI) -- The PGA Tour said it remains confident in its decision to partner with the Saudi-funded LIV Golf Series, despite an ongoing investigation into the two groups by the U.S. Department of Justice. "We are confident that once all stakeholders learn more about how the PGA Tour will lead this new venture, they will understand how it benefits our players, fans and sport while protecting the American institution of golf," the PGA Tour said in a statement.
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The PGA Tour, LIV Golf and Europe's DP World Tour announced June 6 that they reached an agreement to join in a new, unnamed entity, potentially ending two years of legal battles, player feuds, suspensions and defections from the longtime U.S.-based golf league to the upstart, Saudi-backed venture.
The move resulted in criticism from fans, golfers and politicians. On Thursday, Sen. Ron Wyden, D-Ore., chairman of the U.S. Senate Committee on Finance, said he would use his power to launch an investigation into the "PGA [Tour]-LIV merger."
He said he planned seek revocation of special tax treatment for Saudi Arabia's Public Investment Fund.
On Monday, Sen. Richard Blumenthal, D-N.Y., announced a separate investigation into the proposed PGA Tour-LIV partnership.
In a letter sent to PGA Tour commissioner Jay Monahan, Blumenthal cited Saudi Arabia's "deeply disturbing human rights record" and the PGA Tour's "tax exempt status," questioning whether a foreign government should be allowed to "indirectly benefit from provisions in U.S. tax laws."
A PGA Tour spokeswoman told UPI in July that the Department of Justice was investigating the PGA Tour for anti-competitive behavior in connection to LIV Golf.
A source familiar with the investigation told UPI that any current interest by the Department of Justice in the proposed agreement between LIV and the PGA Tour would be part of the pre-existing investigation.
The PGA Tour had no comment on the status of the DOJ investigation.
A spokeswoman from the department's antitrust division did not immediately respond when asked about the probe into the golf operations. LIV Golf had no comment.
The world's elite golfers are in Los Angeles, participating in the 2023 U.S. Open at the Los Angeles Country Club. PGA Tour players at the tournament continue to criticize Monahan and the PGA Tour for deciding to partner with LIV Golf, often characterizing Monahan's role in the matter as hypocritical.
Monahan and the PGA Tour announced Wednesday that the commissioner is "recuperating from a medical situation" and was on indefinite leave.
Saudi Arabia's Public Investment Fund, which finances LIV Golf, is to combine its golf-related commercial businesses and rights with those of the other tours into the for-profit entity.
Monahan will remain commissioner of the PGA Tour. Ed Herlihy will continue to serve as PGA Tour policy board chairman. Public Investment Fund governor Yasir Al-Rumayyan will join the PGA Tour policy board and was appointed chairman of the board of directors for the new entity.
Monahan was named chief executive officer. The PGA Tour said that it will control the majority of board seats for the new entity, with the Public Investment Fund service as a minority investor.
Saudi Crown Prince and Prime Minister Mohammed bin Salman is chairman of the fund, which is valued at more than $600 billion.
