The Department of Justice is investigating the PGA Tour for potentially engaging in anti-competitive behavior as the organization attempts to fend off the Saudi-backed LIV Golf circuit.
The PGA Tour confirmed the investigation to The Wall Street Journal. Attorneys with the Justice Department’s antitrust division have contacted players’ agents requesting information about the PGA’s bylaws and any restrictions it has placed on players participating in other tournaments.
“This was not unexpected,” a PGA Tour spokesman told WSJ. “We went through this in 1994 and we are confident in a similar outcome.”
The Federal Trade Commission (FTC) previously investigated the PGA in 1994 over a rule banning golfers from participating in other tours without the PGA commissioners sign-off, and another rule governing golfers’ appearances on televised golf programs. The FTC dropped the investigation the next year.
The PGA and its allies in the international golf community have attempted to shut out LIV from top-tier talent with limited success. Despite strict regulation and indefinite suspensions, a number of golf stars have defected to the Saudi league, which offers record prizes and generous payouts for appearances. The LIV has attracted top golfers such as Bryson DeChambeau, Dustin Johnson, Brooks Koepka, Phil Mickelson, and Patrick Reed.
In a press conference in June, Dustin Johnson said he moved to the LIV despite being suspended from the PGA because of the money.
“I thought it was best for me and my family,” Johnson said. “I don’t want to play golf for the rest of my life, which I felt like I was probably going to have to do.”
Not all golfers have been swayed by the money, however. Golf pros and PGA officials have been critical of the Saudi-backed circuit over Saudi Arabia’s history of human rights abuses. Golfer Rory McIlroy doubled down on his criticism of the new league last week.
“There’s no room in the golf world for LIV Golf,” McIlroy said in an interview with CBS Sports. “I don’t agree with what LIV is doing. If LIV went away tomorrow I’d be super happy.”
The PGA Tour began suspending golfers last month after a host of players ignored the PGA and played in an LIV tournament in London. The golfers had requested permission to play from the PGA beforehand, but the organization denied each request.