Very early in Masters week, the PGA Tour and the DP World Tour scored key wins in their respective legal showdowns against LIV Golf.
According to sources familiar with the matter, still-sealed orders from Judge Beth Labson Freeman of the U.S. District Court in Northern California compel the Public Investment Fund of Saudi Arabia and its governor, Yasir Al-Rumayyan, to cooperate in the discovery process of the PGA Tour’s countersuit, and to do so in the United States.
The PGA Tour had demonstrated to the federal magistrate that PIF and Al-Rumayyan were intimately involved in the establishment and day-to-day operations of LIV Golf. As a result, the magistrate ruled that the sovereign-immunity protections that PIF and YAR might otherwise enjoy in a U.S. court did not apply in this case because they were running a commercial business in the U.S. The magistrate then ordered PIF and Al-Rumayyan (who are now parties to the case as the result of PGA’s counterclaims) to comply with the discovery process, including Al-Rumayyan giving a deposition.
The Saudis appealed the magistrate’s decision to the federal district judge, and Freeman has now ruled on that appeal. The rulings will be made public once the parties to the lawsuit agree on redactions, which could come as early as Friday.
This ruling has serious implications for the future of the case. PIF and Al-Rumayyan would have to comply with the discovery orders or face a contempt-of-court ruling. If they fail to comply and are cited with contempt, then PIF and YAR can appeal the contempt citations to the Ninth Circuit Court of Appeals. If that occurs, then the entire case will grind to a halt for a year or more as the Ninth Circuit considers the appeal.
On Tuesday, The Times of London reported that the DP World Tour prevailed in its hearing before the Sports Resolutions panel in an action against breakaway LIV Golf players who are members of the DP World Tour. The ruling means that the DP World Tour can now fine and suspend players such as Lee Westwood and Ian Poulter who joined LIV Golf but hoped to retain their DP Tour membership.
In addition, the players who fled the DP World Tour are likely to be ineligible to play in the Ryder Cup.
The panel upheld the tour’s right to issue fines and sanctions each time a DP World Tour member plays an LIV event.
A spokesperson for the DP World Tour said, “Out of respect for the confidentiality of the process conducted by Sport Resolutions, we will make no comment on any aspect of the arbitration until the decision is formally announced.”
This action began last summer when 16 DP World Tour players entered and competed in the inaugural LIV event in London. They were immediately fined and suspended for two weeks. The sanctions were stayed after some players launched an emergency appeal so that they could compete at the Scottish Open. The players were granted an injunction, and they continued to play in DP World Tour events until February’s five-day arbitration hearing, which was followed by two months of deliberation.
The panel upheld the tour’s right to issue fines and sanctions each time a DP World Tour member plays an LIV event. This will likely result in LIV players forsaking their DP World Tour membership, as the decision is final and there is no appeal process.