Legal expert Jodi Balsam talks with Rich Lerner about the PGA Tour’s deal with Strategic Sports Group and how that may affect negotiations with the Public Investment Fund. #GolfChannel #PGATour
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PGA Tour and Strategic Sports Group deal fallout | Golf Channel
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and joined Now by our legal expert Jody Balon Jody thank you for being with us Jody I’ll start here how does this agreement with the Strategic Sports Group impact a potential deal down the road with the Saudi public investment fund the deal with the Strategic Sports Group uh has among its steel terms that future investment by the public investment fund is anticipated and permitted so the Strategic Sports Group don’t have any rights Visa the PFF to interfere with that deal uh will that deal happen I think the Strategic Sports Group investment gives the tour some leverage during PFF investment negotiations uh and it could also lay the groundwork for the tour to remain on its own issuing a merger with piff uh it also appeases the players right the Strategic Sports Group deal uh ensures that there is going to be money in the pot for higher purses players are going to be be offered entity um equity in the new entity uh and uh it sort of sets the stage for a new phase of the PFF negotiations Jody if they do eventually go forward with a deal with a public investment fund any way to know how long it might be before they’re able to unify under one umbrella well the framework agreement originally entered into between piff and the PGA set a December 31st 2023 Deb line for those negotiations obviously that deadline has passed the parties agree to extend the time they have not set a new deadline uh the uh hope would be that it could be resolved at least within this calendar year uh but that frankly depends in part on whether there will be any regulatory obstacles in the way of a piff deal the FSG deal did not present antitrust concerns uh because it did not result in the combination of direct comp competitors none of the SSG investors come from the World of Golf piff does with its live golf tour and if the tour and Liv continue to operate separately as competitors for golfer Services uh they continue to provide a more competitive Marketplace if they combine and either curil or limit the live golf product there could be significant Anti-Trust scrutiny um the Department of Justice investigation is still open they’re concerned about standard antitrust harms when two direct competitors go into a partnership like this lower pay for golfers fewer tournaments to statisfy Consumer appetite for golf higher prices to purchase golf rights for Media Partners and sponsors so there’s a whole host of antitrust concerns that remain live should piff and the PGA Tour uh try to finalize that investment partnership Jody the some geopolitical concerns as well we heard that in those Senate hearings last year particularly with Senator Richard Blumenthal of Conneticut how could uh the SSG in Partnership potentially with uh the public investment fund how could they satisfy a a you Senator Blumenthal for example well um secury of the PGA Tour by that senate committee was focused Less on antitrust and more on sportswashing a concern about Saudi Investment being used to sports wash their human rights abuses and um exercise influence on a significant American cultural institution uh and they suggested to the tour at the time of those hearings why aren’t you looking for us partners well the tour has now found those Partners the tour has satisfied at least with respect to it a significant concern of the senate committee that uh it should be us investors who partner with the tour to the extent that additional capital is needed for them to continue offering the golf product that consumers want um if uh the committee if PFF um the P investment goes forward I think that will renew committee interest in concerns about spor swashing and we know that because the committee is pressing forward on its investigation into the Kingdom of Saudi Arabia’s business dealings in United States Beyond Golf um they have issued a subpoena to the piss and to uh alayan that subpoena has been uh rebuffed uh they are arguing that this piff is arguing that they are not subject to us process uh most commentators most legal authorities think that that argument is wrong that because the Saudi piip is not a mere passive investor in US Ventures but is active operating businesses in the United States they are subject to US law and must comply with the subpoena issued by Congress they are still battling that out Jody balam legal expert Jody thank you
11 Comments
Why is Monahan still in the picture? He should have been canned long ago.
A very smart, knowledgeable, articulate attorney.
Every solution seems to make this more and more murky and ask more questions than it answers
Props to our government for the idea to get American investors. Big W
Like all PGAT announcements a lack of detail..
Now that was interesting. From what I am gathering Sports Washing is basically propaganda to distract people from the human rights and policital situation of Saudi Arabia and to put them in a favourable light with the public. Hey look we are gentleman who appreciate and support this historic game so that makes us gentleman too. Also interesting that PIF has been subpoenead and is not complying with the U.S. Government on their investments in the United States and what they are up to. Hey ….isn't this the same thing as Hunter Biden and all the foreign governments including China paying money to the Biden's 20 LLCs? Maybe the Biden's should do some sports washing too to rehabilitate their image!!! Oh …they already have the DOJ to do that for them. Exonerate them from, all crimes!!!! lol
The PGA tour is now a watered-down tour, we the fans want the best player in the world playing together. Fact!! 🤦♂️🙅♂️
All the SSG investment does is allow Jay to line his pockets by buying off about 20 top players on the PGA Tour (if you look at what the $3 billion investment does, maybe $1 billion can be used to buy players, and that works out to an average of $50 million each for 20 of them, which far less than LIV is offering for top golfers) – it will do nothing for the game of golf and will prevent the best players from competing against each other for the foreseeable future.
The SSG is a for profit group. Where is the return on the money they are giving the PGA coming from ?
Thank you for the consistent quality! Respect 👍
I hope pga doesn’t accept the deal with pig because they will destroy golf as we know it