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The PIF filed lawsuits against the advisers on Nov. 30. The panel said this was “concerning” and an attempt to “prevent the production of records to this Subcommittee.”
A spokesman for the PIF didn’t respond to requests for comments. Messages to M. Klein, McKinsey, Boston Consulting Group and Teneo also went unanswered.
The LIV tour has upended men’s golf since its launch in 2022. It’s convinced some of the world’s best players to join — including Americans Phil Mickelson and Dustin Johnson — by offering them huge pay deals.
Al-Rumayyan is a big golf fan.
Saudi Lawsuits
The Senate panel had been seeking information on work done for the PIF, particularly related to investments in the US and the establishment of LIV Golf.
They requested the information from PIF’s advisers by Sept 6. after Al-Rumayyan had declined an invitation to testify before the Subcommittee. The Senate’s request would require the PIF’s advisors to violate Saudi law, PIF’s lawyers said in a letter to the Subcommittee. The Senate’s request would require the PIF’s advisors to violate Saudi law, PIF’s lawyers said in a letter to the Senate dated Jan. 12., after the fund filed lawsuits in Saudi courts to block them from providing the information requested.
The fund’s US subsidiary was also subpoenaed on Sept. 13 to compel it to produce documents related to the inquiry.
The $700 billion Saudi wealth fund was the most active fund in the world last year, and has a $36 billion portfolio of US stock investments. It owns stakes in Lucid Group Inc., Activision Blizzard and JPMorgan Chase & Co.
It has become a key vehicle for Crown Prince Mohammed bin Salman, who is also chairman of the fund, to transform Saudi Arabia. He wants to reduce its dependency on oil and turn it into a hub for everything from electric vehicles to semiconductors and tourism.
The PGA and LIV’s shock announcement last year that they were working on a merger put an end to a bitter legal battle in US courts over allegations of antitrust violations.
Still, those talks have not yet resulted in a deal. And while the negotiations continue, LIV has continued to entice players away from the PGA. In December, the world number three player, Spain’s Jon Rahm, joined LIV. He could earn as much as $300 million with the switch, according to a report from ESPN.
On Wednesday, another investor, Strategic Sports Group, agreed to put $3 billion into the PGA, in a deal valuing the owner of the US’s main golf tour at $12 billion.
Strategic Sports is led by John Henry’s Fenway Sports Group, which owns the Boston Red Sox and Liverpool FC.
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When will we all have had enough of the Saudi invasion and send them packing? Block them from investing in U.S. assets and ban them from holding tournaments in the U.S. And no OWGR ranking points until they meet the currently established criteria. It would be game over.
This our country, not theirs. We make the rules for engaging in commerce in the United States, not Saudi Arabia and their “bought” lobbyists.
The Head Nut
#0001