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    US senator warns top Saudi over refusal to testify on PGA golf deal

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    A senior US lawmaker has challenged a Saudi Arabian official’s refusal to voluntarily testify before a Senate committee investigating the kingdom’s controversial golf deal with the PGA Tour, saying officials should be prepared to be subject to American laws and oversight if they invest in the US.Richard Blumenthal, a Democratic senator from Connecticut who serves as chairman of the Senate’s permanent subcommittee on investigations, also said he would consider “other legal methods” to force Yasir al-Rumayyan, the governor of the Public Investment Fund (PIF), to testify if he continued to refuse.Al-Rumayyan, who also serves as the chairman of Saudi Aramco and the Premier League club Newcastle United, was given until 18 August to comply with the committee’s documents request.Any move to testify before the Senate could have significant implications for al-Rumayyan, including being subjected to questions about the controversial so-called “anti-corruption” drive headed by the Saudi crown prince, Mohammed bin Salman. That effort saw assets transferred to the PIF, and the alleged use by the kingdom of PIF-owned jets to transport Saudi agents who killed the journalist Jamal Khashoggi at the Saudi consulate in Istanbul.There is no suggestion that al-Rumayyan had any knowledge or personal involvement in the matter.While the increasingly fractious exchanges between the Senate committee and the PIF appear to be centered on the Saudi-backed merger between the PGA Tour and the LIV Tour, Blumenthal’s comments strike at larger concerns in Washington over Saudi Arabia’s investment ambitions.Blumenthal said the PIF, which is worth about $780bn, already has “extensive business dealings” in the US and was much more than a “passive investor”. The sovereign wealth fund holds a $3.5bn stake in Uber, has recently established a US subsidiary, and holds investments in prominent US venture capital firms.“In short, PIF cannot have it both ways: if it wants to engage with the United States commercially, it must be subject to United States law and oversight,” Blumenthal said.The Senate committee investigating the PGA deal sent its first request to al-Rumayyan on 21 June, inviting him to testify at a 11 July hearing. The PIF declined, citing scheduling conflicts.In a letter released on Wednesday, Blumenthal said the committee’s second request – for al-Rumayyan to testify at an acceptable date in September – was met with a letter from PIF’s legal counsel, saying that al-Rumayyan would be “an inappropriate witness” because he was a minister “bound by the kingdom’s laws regarding the confidentiality of certain information”.The senator rejected the claim, pointing to a US district court decision in California, which ruled that al-Rumayyan was not exempt from testifying in legal matters connected to the PIF’s commercial activities. The court added that Saudi Arabia’s “sovereign considerations” were diminished by the PIF’s intent to benefit from its investments in the US.The PIF’s position – that al-Rumayyan deserves sovereign immunity because of his position as a Saudi official, and his obligations to the Saudi state – appears to directly contradict the kingdom’s public stance on other deals.In the UK, the PIF’s takeover of a controlling stake in Newcastle in October 2021 was given the green light after the club was given “legally binding assurances” that the kingdom would not have any control over the club.The PIF has declined in the past to address the apparent contradiction. The fund did not immediately comment on the Blumenthal letter. More

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      US government prepares to look into LIV-PGA merger amid sportswashing claims

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      The leader of a US Senate subcommittee is demanding the PGA Tour and Saudi Arabia’s LIV Golf present records about the negotiations that led to their planned merger.Richard Blumenthal, a Democrat from Connecticut, sent letters on Monday to PGA Tour commissioner Jay Monahan and LIV CEO Greg Norman.“While few details about the agreement are known, PIF’s role as an arm of the Saudi government and PGA Tour’s sudden and drastic reversal of position concerning LIV Golf raise serious questions regarding the reasons for and terms behind the announced agreement,” Blumenthal wrote in a letter to Monahan.The Saudi Public Investment Fund (PIF) will pour huge sums – confirmed by its governor, Yasir al-Rumuyyan, as running into billions – into a newly formed entity to run top-tier golf. The PIF has assets of more than $700bn and will lead efforts to move Saudi Arabia on from its reliance on its oil assets.Blumenthal, who is chairman of the Senate Permanent Subcommittee on Investigations, said he also wanted to hear the tour’s plans to retain its tax-exempt status.Last week, LIV and the tour stunned the golf world by agreeing to merge the PGA Tour and European tour with the Saudi golf interests, while also dropping all lawsuits between the parties. Al-Rumuyyan will join the PGA Tour board of directors and lead a new business venture as its chairman. The PGA Tour itself will remain a tax-exempt entity.It was a move expected to receive scrutiny from US federal regulators and lawmakers, and the launch of a Senate investigation is among the first dominoes to fall.Among the uncertainties is how LIV Golf goes forward after 2023.In his letters to Monahan and Norman, Blumenthal wrote about the skepticism critics hold over the Saudis’ intent “to use investments in sports to further the Saudi government’s strategic objectives.”“Critics have cast such Saudi investments in sports as a means of “sportswashing” – an attempt to soften the country’s image around the world – given Saudi Arabia’s deeply disturbing human rights record at home and abroad,” the letter said.Blumenthal asked for a a huge trove of documents – essentially all communications between LIV and the tour beginning in October 2021 through to the present.Al-Rumayyan said last week that Norman was not apprised of the deal until shortly before it was announced. More

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      US congressman accuses LIV CEO Greg Norman of pushing Saudi ‘propaganda’

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      US congressman accuses LIV CEO Greg Norman of pushing Saudi ‘propaganda’ Australian visits Capitol Hill in attempt to promote rebel tourLIV’s role questioned by Democrats and Republicans Greg Norman faced accusations of promoting Saudi “propaganda” following meetings with Washington lawmakers, in which the Australian golfer sought to garner support for the Saudi-backed LIV Series in its bitter dispute with the PGA Tour.Norman, who serves as LIV’s CEO and has been the public face of the breakaway tour, ostensibly came to the US capital this week to criticise what he has called the PGA’s “anti-competitive efforts” to stifle LIV.But – apart from some lawmakers who allegedly sought to take their picture with Norman – the Saudi tour has instead faced a considerable backlash from both Democrats and Republicans, who have defended the PGA and accused LIV of being little more than a sportswashing vehicle for the kingdom.Tim Burchett, a Republican congressman from Tennessee, left a meeting of the Republican Study Committee on Wednesday at which dozens of his party colleagues had met with Norman, expressing dismay that members of Congress were discussing a golf league backed by Saudi funds. He also called Norman’s LIV pitch “propaganda”.‘I hate it. I really do’: McIlroy opens up on golf’s civil war after FedEx Cup winRead more“We need to get out of bed with these people. They are bad actors. We need to keep them at arm’s length,” Burchett told the Guardian. He cited the September 11 attacks on the US, the murder of Saudi journalist Jamal Khashoggi, and the kingdom’s treatment of gay people and women, which he called “just unacceptable”.While Burchett is a conservative Republican, LIV has also come under fire from the left. Democratic Senator Dick Durbin said earlier this month on Twitter that the LIV tour was using a “golf glove [to] try and cover a blood-stained hand” of the Saudi government. He added that the series was part of a “continued, desperate attempt to clean up [Saudi Arabia’s] image”.Durbin added in a second tweet: “Money shouldn’t be allowed to cover up the murder and dismemberment of a journalist or the imprisonment and harassment of activists like Raif Badawi, Waleed Abu Ak-Khair, and Salma al-Shehab.”The LIV spokesperson Jonathan Grella said: “Greg Norman had a very productive day on Capitol Hill today in front of some 60 members of Congress. His message about the benefits of competition was very well received, even if a couple members of Congress say otherwise.”Even as LIV and the PGA are engaged in litigation in the US involving allegations that the PGA has engaged in anti-competitive practices, some lawmakers have asked whether proponents of the Saudi-backed tour, which is owned by Saudi Arabia’s sovereign wealth fund, ought to be filing as foreign agents of the kingdom.Department of Justice rules require agents of “foreign principals” who are engaged in “political activities” to disclose their relationship with the foreign principal – in this case, Saudi Arabia – as well as receipts, contracts, and payments in support of those activities. The justice department has notably stepped up its enforcement of such rules – known as the Foreign Agent Registration Act (Fara) – over the last 12 months, and has charged individuals who the department has deemed have acted as foreign agents without disclosing their activities.Chip Roy, a conservative Republican congressman from Texas, in a letter in July called on the DOJ to investigate “potential violations” of the Fara rules.“The Kingdom of Saudi Arabia is funneling money through its Public Investment Fund (PIF) to stand up LIV Golf as an exercise in public relations. In other words, a foreign government’s dollars are being used to enhance that government’s brand and positioning here in the United States,” Roy wrote.One legal expert interviewed by the Guardian said that business ventures that are owned by foreign governments do sometimes escape scrutiny, but not when they are owned by a nation’s sovereign wealth fund, and not when there are legitimate questions about whether the business also has public relations goals involving the country’s image abroad.“I think there are a lot of signs that LIV is not a typical business interest. I think there are a lot of reasons for the DoJ to potentially kick tires on this. I wouldn’t be surprised if they did,” said Matt Sanderson, a lawyer at Caplin & Drysdale who specialises in Fara cases. Sanderson said it was also unclear whether LIV intended to make a profit in the long run, raising further questions about its intentions.He added that while he did not think the golfers who have signed up with LIV would personally have to file under Fara, he said any individuals who talk to government officials or engage in PR activities would most likely come under scrutiny if they had not disclosed their activity.Asked whether LIV officials would file under Fara, Grella said: “Our lawyers have informed us that it is not applicable.”TopicsLIV Golf SeriesGolfUS politicsUS political lobbyingSaudi ArabiaMiddle East and north AfricaUS sportsnewsReuse this content More