US Department of Justice Launches PGA Investigation for Antitrust Violations Targeting LIV

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The U.S. Department of Justice has launched an antitrust investigation into the Professional Golfers' Association (PGA). The issue arose as the PGA pressured its affiliated golfers with disciplinary actions to counter the Saudi Arabia-backed LIV Golf Invitational Series.

On the 11th (local time), The Wall Street Journal (WSJ) reported that the U.S. Department of Justice has initiated an antitrust investigation into the PGA. Citing sources, WSJ stated that the DOJ is currently verifying situations between the PGA and the LIV Series concerning golfers active in the U.S. The PGA also confirmed that it is under investigation related to the LIV Series.

The problem lies in the disciplinary measures and bans on participation implemented by the PGA to counter LIV, which has been attracting popular players with its massive financial resources. Players registered with the PGA are required to obtain prior approval if they wish to participate in tournaments hosted by organizations other than the PGA, and the DOJ is reportedly challenging this regulation.

Having held its first tournament last month, LIV has emerged in the global men's golf scene, previously dominated by the PGA and the DP World Tour (European Tour), leveraging 'oil money.' As popular stars began participating in LIV events, the PGA responded by announcing severe penalties, stating that players who took part in the LIV Series opening event would be barred from all future PGA-sanctioned tournaments.

The LIV Series claims that such PGA disciplinary actions constitute abuse of market dominance and violate antitrust laws. Furthermore, PGA regulations allow affiliated players to participate in up to three events per season held on other continents with prior approval, even if those events are not PGA-sanctioned. However, the LIV Series opening event was held in the UK, and approval was not granted.

According to WSJ, controversy over whether the PGA's prior approval rule violates antitrust laws also arose in 1994. At that time, the Federal Trade Commission (FTC), which reviewed the regulation, concluded that it did not violate antitrust laws. The PGA expects a similar outcome this time, anticipating no charges.

Meanwhile, the DP World Tour, based in Europe, also imposed bans on affiliated players who participated in the LIV Series, but recently, a court ruled in favor of the players in a motion to suspend the disciplinary measures.

On the other hand, golfers who moved to the LIV Series are facing difficulties as some sponsors have withdrawn support. According to ESPN, Mastercard announced it would suspend sponsorships for Ian Poulter and Graeme McDowell, who it had supported since 2009 and 2011, respectively. Since their relationship with the PGA has become uncertain, the contracts will be temporarily suspended.

This content was produced with the assistance of AI translation services.