A judge has ruled that Saudi Arabia’s Public Investment Fund and its governor can be removed and must produce documents in ongoing litigation between the PGA Tour and LIV Golf.
The decision is a major victory for the tour, as federal magistrate judge Susan van Keulen rejected LIV’s arguments that PIF and Yasir al-Rumayyan are protected by sovereign immunity laws because al-Rumayyan’s conduct “fell under the commercial activity”. which is the foreign exception.” Sovereign Immunity Act. Should the ruling come to fruition, it would provide unprecedented access to the sovereign wealth fund’s business dealings, which Saudi Arabia has long fought to keep secret.
Late last month, the tour sought to add PIF and Al-Rumayyan to the suit, with the proposal arguing that the LIV was a “long-term plan” to take over professional golf as part of Saudi Arabia’s Vision 2030. Here’s the final result, detailed by Golf Digest. The PIF is the primary supporter of the LIV, and PGA Tour documents obtained in discovery in December allege that the PIF and Al-Rumayyan were “instrumental in inducing players to breach their tour contracts.” The tour argues that Al-Rumayyan personally recruited the players, “took an active role in contract negotiations, and apparently approved each player contract – knowing that these deals would interfere with the players’ tour contracts”. “
The LIV argued that the PIF was a “mere investor”, but Van Keulen rejected those claims, writing that it was clear that the PIF was “the driving force behind the establishment, funding, oversight, and operation of the LIV.”
Al-Rumayyan, who is part of Crown Prince Mohammed bin Salman’s inner circle, is believed to be the mastermind of the Golf Saudi and LIV Golf projects. Although Greg Norman has been LIV Golf’s public-facing leader, sources familiar with LIV tell Golf Digest Al-Rumayyan and Majid Al Sorour, who used to have the final opinion on LIV Golf/Golf Saudi affairs. Last month, Al Sorour was removed as the managing director of LIV Golf.
The judge ruled in favor of LIV that the tour should reduce its scope of subpoenas, writing the subpoenas “suffer from exaggeration both in scope and number of requests.” However, the Tour has the right to reserve summons, providing an opportunity for al-Rumayyn to be deposed.
LIV is expected to appeal the decision, which will then go to US District Court Judge Beth Freeman, who already ruled against LIV and LIV members in a temporary restraining order last summer. LIV could then appeal to the 9th Circuit Court, a case that would delay the antitrust case for months.
LIV Golf is set to launch its 2023 season next week.