Report: Justice Department looking into PGA Tour-Saudi PIF merger

Although the U.S. Open is well underway, the wheels of justice aren't pausing to watch. The Justice Department is the latest government entity to take a close look at the potential merger between the PGA Tour and Saudi Arabia's Public Investment Fund.

Per a new report in the Wall Street Journal, the U.S. Department of Justice has informed the PGA Tour that it is reviewing the proposed merger for antitrust concerns. The PGA Tour and LIV Golf, the golf beneficiary of the PIF wealth, had been involved in litigation with one another, including allegations that the Tour had engaged in anticompetitive practices, but the proposed merger would end all litigation between the two entities.

The prospect of antitrust litigation ending with both antagonists merging with one another is a scenario that always draws significant regulatory scrutiny. Government entities had already been taking a close look at the two tours, both independently and in concert, and the stunning news of the merger — which took almost the entire golf world by surprise — only heightens the stakes of that scrutiny.

Details on any investigation are nonexistent given the preliminary state of affairs, but the Department of Justice's inquiry only adds to the number of governmental eyes now trained on the world of professional golf. Sen. Richard Blumenthal, in his role as the chairman of the Senate Permanent Committee on Investigations, has informed both the PGA Tour and LIV Golf that the Senate will be looking into the deal. In addition, two other senators have asked Attorney General Merrick Garland to investigate the merger for antitrust concerns.

The PGA Tour and PIF did not announce any specifics about their deal apart from the basic framework — the PGA Tour with a majority of seats on the new venture's board, PIF providing the financial muscle — and the cessation of legal hostilities. That leaves plenty of room for federal investigators to dive deep into the nuances of the deal, and delay it or even halt it entirely.