The contentious battle between the PGA Tour and LIV Golf took another significant turn late Tuesday when the tour filed a claim in federal district court in California seeking to add Saudi Arabia’s Public Investment Fund and its fund governor, Yasir Al-Rumayyan, to the lawsuit filed last year by the new golf league.
The filing is an attempt to force Al-Rumayyan and the PIF, reportedly worth more than $600 billion, to submit to the discovery process as part of the lawsuit filed last year by LIV Golf alleging that the PGA Tour is in violation of antitrust laws.
The PIF has funded LIV’s aggressive arrival in professional golf, and the PGA Tour’s legal team is asking that its leaders be subject to the rules of discovery. LIV, which is now on its third team of lawyers since the original filing, has contended that LIV Golf is its own entity and, as a sovereign nation, Saudi Arabia should not have to subject its officials to the American judicial processes.
Recently, LIV Golf CEO Greg Norman confirmed that the Saudi PIF is funding the controversial new league.
“PIF (the Public Investment Fund) is our – our single-source investor. There’s no question about that, no denying about that. But everything is up to LIV Golf Investments. It’s up to me and my executive team to run and govern this thing going forward,” Norman said on Fox News.
In the new filing, the PGA Tour argues that the fund and Al-Rumayyan are central to every aspect of LIV’s operation.
“As set forth in the existing counterclaim, LIV intentionally and knowingly caused these players to breach their contractual obligations to the Tour by misrepresenting Tour contracts, inducing these breaches by offering highly lucrative contracts that make it impossible for players to comply with their Tour contracts and providing extensive indemnification and hundreds of millions of dollars to compensate LIV players for these breaches.
“Recently produced documents confirm that PIF and Mr. Al-Rumayyan played an active and central role in orchestrating these breaches for their own benefit and are equally liable for the harm caused to the Tour,” the filing reads.
No decision on the tour’s new filing is expected before mid-May.
This is an outgrowth of LIV’s suit against the tour, and the PGA Tour is pushing back.
“In addition to exercising near absolute authority over LIV, 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 filing states.
“In addition to approving player contracts that pledge to indemnify such players from breach of their contractual obligations to the Tour, Mr. Al-Rumayyan himself has gone as far as to provide personal assurances to at least one player about his and PIF’s commitment to backing such players in any legal claims by the Tour.
“Leave should be granted to add both PIF and Mr. Al-Rumayyan as counter-defendants because all relevant factors weigh in favor of amendment.”
By filing the lawsuit in the United States, LIV Golf and its backers are subject to U.S. laws. It’s unclear whether Al-Rumayyan will submit to the discovery process if so compelled and what will happen to the case if he refuses.
According to court documents, LIV has used three different law firms. Gibson, Dunn & Crutcher was involved during LIV’s formation and player recruitment, Quinn Emanuel later came onboard and, most recently White & Case has handled court filings. Legal analysts question whether the use of multiple firms suggests a shift in LIV’s legal strategy.
Recently, LIV confirmed that Majed Al-Sorour has left his position as managing director of LIV Golf, though he will remain on the board of directors. The move appears to further entrench the controversial Norman as the league’s leader.
No decision on the tour’s new filing is expected before mid-May.
In a related matter, LIV Golf has sought to subpoena former Secretary of State Condoleezza Rice and Warren Stephens, CEO of investment bank Stephens Inc., arguing that they attempted to influence the Department of Justice to stop its investigation of the PGA Tour.
LIV Golf prepares to launch its second season – the league announced its 14-event schedule on Tuesday – after an active offseason.
Recently, LIV confirmed that Majed Al-Sorour has left his position as managing director of LIV Golf, though he will remain on the board of directors. The move appears to further entrench the controversial Norman as the league’s leader.
After months searching for a broadcast partner, LIV announced last week that it has struck a deal with CW Network to air its events. CW is the 25th-most-watched network in the United States, but it gives LIV access to more than 120 million homes. Though no terms of the deal were announced, it has been reported to be a revenue-sharing deal.