Senate Finance Committee Chairman Ron Wyden, D-Ore., announced Thursday that he has opened an investigation into the PGA Tour’s planned merger with Saudi-backed LIV Golf.
Wyden’s announcement of the investigation escalates his criticism of PGA Tour’s agreement with the Saudi Public Investment Fund regarding LIV Golf. The senator is seeking information from the PGA Tour’s leadership ranging from details about the framework of the deal to an assessment of the merger’s implications for national security.
In a letter to the organization’s leadership Thursday, Wyden wrote that the merger “raises significant questions about whether organizations that tie themselves to an authoritarian regime that has continually undermined the rule of law should continue to enjoy tax-exempt status” in the U.S.
“I believe it is critical that lawmakers understand what risks this arrangement may pose to America’s national interests, particularly with respect to foreign investment in U.S. real estate, such as locations neighboring military facilities or sensitive manufacturing centers, and how you plan to mitigate those risks,” Wyden wrote.
Wyden also announced in a press release that he plans to introduce legislation to revoke the Saudi Public Investment Fund’s “special tax exemption that applies to certain types of investment income by foreign governments and sovereign wealth funds.” He argued that imposing this penalty could potentially have significant impact on the Saudi sovereign wealth fund, which has an estimated value of more than $600 billion, according to Wyden’s office.
The PGA Tour did not immediately respond to NBC News’ request for comment.
Wyden’s announcement comes a day after he and Sen. Elizabeth Warren, D-Mass., asked the Justice Department to “closely scrutinize” the PGA Tour’s planned merger with Saudi-backed LIV Golf, saying in a letter Tuesday that the deal raises antitrust concerns and would help the Middle Eastern country “‘sportswash’ its egregious human rights record.”
Sen. Richard Blumenthal, D-Conn., on Monday also announced an investigation into the merger, seeking records from PGA officials outlining work that led to the merger. In a letter to PGA Tour Commissioner Jay Monahan, Blumenthal, who chairs the Senate Permanent Subcommittee on Investigations, said the merger “raises concerns about the Saudi government’s role in influencing this effort and the risks posed by a foreign government entity assuming control over a cherished American institution.”
Source: | This article originally belongs to Nbcnews.com
