"Today's hearing is about much more than the game of golf," Blumenthal said in his opening remarks during Tuesday's hearing."It's about how a brutal, repressive regime can buy influence -- indeed even take over -- a cherished American institution simply to cleanse its public image."
Before the agreement between the PGA Tour and PIF went public June 6, the two had been ensnared in an"acrimonious relationship." Eleven players who were suspended by the PGA Tour for joining LIV Golf filed a federal antitrust lawsuit against the tour in August, and the PGA Tour countersued LIV, and eventually PIF and Al-Rumayyan, in September.
In the same email to Dunne, Devlin said he had helped arrange for McIlroy to meet with Al-Rumayyan in Dubai the previous month. McIlroy has been one of the PGA Tour's most outspoken supporters during its battle with LIV Golf. The committee memo says it is unclear why Dunne changed his mind, but on April 18, Dunne initiated contact with Al-Rumayyan over WhatsApp. The two agreed to meet in person April 23-24 in London to discuss a potential deal. Herlihy also attended, along with Staveley, another PCP Capital Partners executive and"other PIF representatives," according to the subcommittee memo.
The proposal included LIV Golf players having their PGA Tour memberships restored and receiving Official World Golf Ranking points, including retroactively for their results in LIV Golf events the past two seasons. It also called for LIV Golf players to have"unfettered access" to the four major championships and to have their eligibility for the Ryder Cup and Presidents Cup reinstated.
"Knowledge of these negotiations appears to have been restricted to a very small number of people," the subcommittee memo states, quoting Staveley in an email dated April 26 that"[confidentiality] is critical at this important time." The PGA Tour has publicly announced it intends to retain its 501 tax-exempt status, meaning it does not have to pay taxes like a commercial enterprise. The subcommittee memo notes, however, that since it is"unclear" what assets will remain with the PGA Tour, it is also unclear whether it should"appropriately be designated tax exempt."