Saudi Threatens Imprisonment for Advisers Cooperating with U.S. Investigation into PGA Tour, LIV Golf Dealings
The dispute involving the PGA Tour, LIV Golf, and Saudi Arabia’s Public Investment Fund (PIF) has taken a darker turn as Saudi Arabia threatens imprisonment for advisers who cooperate with the ongoing U.S. investigation. Although a framework agreement was reached last June, legal battles persist around the controversial dealings. Yasir Al-Rumayyan, governor of PIF and…
The dispute involving the PGA Tour, LIV Golf, and Saudi Arabia’s Public Investment Fund (PIF) has taken a darker turn as Saudi Arabia threatens imprisonment for advisers who cooperate with the ongoing U.S. investigation. Although a framework agreement was reached last June, legal battles persist around the controversial dealings.
Yasir Al-Rumayyan, governor of PIF and chairman of LIV Golf, reportedly faces a $74 million lawsuit in a Canadian court. Bloomberg recently revealed that Saudi Arabia has warned bankers and consultants against collaborating with the U.S. government’s investigation. In November, PIF sued its advisers in Saudi court to prevent them from sharing information with the U.S. Senate Committee on Homeland Security and Governmental Affairs.
The U.S. Department of Justice and Senate have shown keen interest in the negotiations between the Tour and PIF over the past seven months. A recent hearing featured PIF consultants, including Paul Keary (Teneo Strategy), Michael Klein (M. Klein & Co.), Rich Lesser (Boston Consulting Group), and Bob Sternfels (McKinsey).
The PIF has made it clear that disclosing information related to their work is a violation of Saudi law, which carries severe penalties, including up to 20 years of imprisonment. This stance has surprised many, given PIF’s reputation for governance.
The advisers’ reluctance to fully cooperate with the investigation has drawn criticism from the Senate committee. They have only provided a fraction of the documents requested in a congressional subpoena, mainly consisting of redacted calendar invites and publicly available information.
Senator Richard Blumenthal expressed astonishment at American companies’ acceptance of Saudi restrictions, questioning their refusal to comply with a congressional subpoena.
In response to the hearing, PIF emphasized its commitment to cooperating in good faith while respecting Saudi law. They have facilitated the production of thousands of documents but cite legal constraints in disclosing certain information.
Meanwhile, discussions between the Tour and PIF continue, despite missing the initial deadline for a deal. The Tour recently secured a $3 billion investment from Strategic Sports Group, potentially diluting Saudi involvement and signaling a shift in the negotiation dynamics.
