Golf’s controversial new partnership is in for an “uncomfortable ride” and may face lengthy and costly legal challenges in multiple jurisdictions, a competition lawyer has said.
The PGA Tour announced last week it was creating a new commercial entity with the DP World Tour and Saudi Arabia’s Public Investment Fund (PIF), a move it said would “unify golf” and which brought an end to a legal dispute between the PGA Tour and LIV Golf, a series backed by PIF.
Concerns have already been raised about whether the new deal may fall foul of competition law. The United States Senate has already opened an investigation into it, with Senator Richard Blumenthal writing to PGA Tour chief executive Jay Monahan to say that the PGA Tour’s “sudden and drastic reversal of position concerning LIV Golf” raised “serious questions”.
The PGA Tour insists this agreement is not a merger, and that the deal did not mean PIF now owned the PGA Tour. Instead, it says PIF will be investing in this new subsidiary of the PGA Tour, with the PGA Tour retaining majority ownership and control.
However, Andrew Evans, a partner at the law firm Irwin Mitchell, believes there are a number of hurdles for the new venture to overcome.
“Even though the structure for the PGA Tour/LIV merger is not known at present, competition law, or antitrust law as it is also known, tends to look at the economic impact of a merger regardless of the legal form it takes,” he told the PA news agency.
“So structuring the merger in a particular way, referring to it is a partnership etc will not hugely affect the analysis from a competition law perspective.”
In the United Kingdom mergers are the responsibility of the Competition and Markets Authority (CMA), while, in the US, the Federal Trade Commission (FTC) and the Department of Justice (DoJ) are the bodies responsible.
However, Evans believes the global nature of golf at a commercial level means many more jurisdictions may take a look.
“For a worldwide business such as PGA Tour and LIV Golf there is lots of potential for regulators in many different jurisdictions to get involved and investigate the merger and, in a worst-case scenario, block the merger,” he said.
“Whilst there is little granular detail about how the merger will work and be implemented, hopefully the parties have already sought and obtained merger control advice.
“Even if they have, they may be in for an uncomfortable ride in some jurisdictions around the world before the merger, if cleared, is allowed to proceed.
“Merger investigations can also be very time-consuming and costly, with the full processes taking many months and potentially more than a year to conclude in some jurisdictions.”
Evans said regulators will be concerned about the “downstream” and “upstream” impacts on competition that the deal might create.
“Downstream” impacts might include the impact on broadcasters seeking to buy television rights.
“Prior to the merger both PGA Tour and LIV Golf would be in competition with each other to sell their respective television rights, and therefore each imposes a constraint on the other in relation to the price that they can charge as there is an alternative that anyone seeking to buy television rights has,” Evans said.
“Once they are merged and under common control that constraint is removed or reduced, particularly in a case where there is no other comparable worldwide golf tour, so there is no alternative choice.
“That would allow the merged business to have greater market power and greater ability to dictate the price at which television rights would be sold.”
“Upstream” rights could include the impact on players’ earning potential, Evans said.
“Though professional golfers may not be a group most people would immediately think of as being worthy of protection, the impact the merger would have on them and the reduced choice as to which tour to join and on what terms, if both are controlled by the same operator, is another consideration,” he added.
A closer look at the hot streak of world number one Scottie Scheffler
Scottie Scheffler claimed his fourth win in five events on Monday when the weather-delayed RBC Heritage concluded at Hilton Head.
That run includes a second Masters title and has seen the world number one extend his sizeable lead over Rory McIlroy at the top of the rankings.
Here, the PA news agency looks at some of the facts and figures around Scheffler’s streak and how they compare to previous runs.
What makes Scheffler’s streak so impressive?Winning any event on the PGA Tour is difficult, but Scheffler has claimed two of the biggest in the Arnold Palmer Invitational and Players Championship, a major championship at Augusta National and the RBC Heritage, which boasted a stronger than usual field after being elevated to a Signature Event this season. Victory at Sawgrass made Scheffler the first player ever to win back-to-back Players titles. His only “failure” was a tie for second in the Houston Open.
Has this been done before?Scheffler is the first player to win four times in five starts on the PGA Tour since Tiger Woods, who did so at the end of 2007 and again to start 2008. He is also the third player in the last 30 years – after Woods and Vijay Singh (2004) – to win or finish runner-up in five consecutive starts on the PGA Tour. With many players taking a break after winning a major, Scheffler is also the first to win a PGA Tour event the week after claiming a green jacket since Bernhard Langer in 1985.
How much has Scheffler earned?Scheffler has banked an average of £3.17million for each of his four victories and “only” £448,000 for his five-way tie for second behind Stephan Jaeger in the Houston Open. The total sum of £13.14m would place Scheffler 145th on the PGA Tour’s career earnings list and he is closing in on the single-season record of £17million he set last year. In comparison, Woods won nine times on the PGA Tour in 2000, including three major titles, and never finished worse than 23rd in 20 starts. His prize money totalled £7.4m.
Does the world ranking reflect Scheffler’s dominance?In a word, yes. Ahead of the Genesis Invitational in mid-February, Rory McIlroy could have become world number one by winning at Riviera with Scheffler finishing third or worse. Now, Scheffler has more than double the total and average points of McIlroy, while the average points gap between the top two (7.6493) is bigger than that between McIlroy and the players tied for 4,123st in the standings.
So is Scheffler the most dominant player in world golf?Not quite. Hours before Scheffler completed his victory in Hilton Head, fellow American Nelly Korda had wrapped up a fifth consecutive win on the LPGA Tour by claiming her second major title in the Chevron Championship. Korda’s winning streak matches that of Nancy Lopez in 1978 and Annika Sorenstam in 2004-05, although her bid for an unprecedented sixth straight win will have to wait after she cited exhaustion when pulling out of this week’s event in Los Angeles. While Scheffler has earned £13.14m from his last five events, Korda’s five wins have been worth £1.94m.
Scottie Scheffler matches Tiger Woods achievement with fourth win in five
Masters champion Scottie Scheffler hailed his mental strength after making it four wins in five starts with a rain-delayed victory at the RBC Heritage.
Scheffler returned to Hilton Head on Monday morning holding a five-stroke lead with three holes to play after a storm halted proceedings on Sunday.
The world number one dropped a shot at the last to finish 19 under par, three shots ahead of fellow American Sahith Theegala, with Patrick Cantlay and Wyndham Clark another stroke back.
Scheffler is the first player to win a PGA Tour event the week after claiming the Green Jacket since Bernhard Langer in 1985 and the first to win four times in five starts on the US-based circuit since Tiger Woods in 2007-08.
Each of Scheffler’s last seven wins have come with at least eight of the world’s top 10 in the field and he is the third player in the last 30 years – after Woods and Vijay Singh – to win or finish runner-up in five consecutive starts on the PGA Tour.
“I was able to go home for a couple days and celebrate,” Scheffler said.
“I didn’t really put much thought into it. I had committed to playing the tournament here, it was part of the plan, so we stuck to the plan.
“I talked about it at the beginning of the week – I didn’t show up here just to have some sort of ceremony and have people tell me congratulations. I came here with a purpose, got off to a slow start but after that played some really nice golf.
“I do have fairly high expectations for myself and when I show up at tournaments, I try to do my best.
“I’ve talked a lot about kind of the preparation and what it takes for me to show up on a first tee ready to go, and I feel like I’ve been putting in the work and been playing some good golf, and it’s nice to be seeing some results for that with wins.
“On the course, I think the last month or so I’ve been as good mentally as I have in a long time and I think that’s why I am seeing some of the results.
“This week could be a good example of starting off and looking at the leaderboard on Thursday and everybody is just making birdie after birdie and I’m sitting there over par and I’ve had a shank on the day.
“I just did my best to stay patient and wait until I got hot.
“Had a nice finish to the round on Thursday and then had a really solid Friday where I felt like I played better than I scored, and then I had Saturday where I just played some really good golf.”
Rory McIlroy carded a final-round 74 to slip into a tie for 33rd.
Scottie Scheffler five strokes ahead with weather forcing a Monday finish
Scottie Scheffler has a five stroke lead with just three holes to play after rain halted play in the RBC Heritage on Sunday.
The US Open champion and world number one continued his great form at Hilton Head in South Carolina on the fourth day of the tournament, hitting an eagle and two birdies across 15 holes.
A storm stopped play for two and a half hours with darkness forcing a finish on Monday.
Fellow American Wyndham Clark had a strong day through his 18 holes, moving into second place with eight birdies and an eagle, but two bogeys and a double bogey stopped him from further encroaching on Scheffler’s lead.
Clark is tied with American’s Patrick Cantlay and J T Poston, who have one hole left to play and Sahith Theegala, who has three holes left to play.
Scheffler is looking for his fourth win in five starts.
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