How the U.S. election could shape the future of the PGA Tour, PIF deal…..

The 2024 U.S. presidential election could be pivotal for the future of the PGA Tour and its partnership with Saudi Arabia’s Public Investment Fund (PIF), along with the DP World Tour.

Vice President Kamala Harris and former President Donald Trump, the two main contenders, are expected to take distinct approaches to the deal, especially given the Department of Justice’s (DOJ) ongoing antitrust scrutiny.

Legal experts suggest that the Trump administration may favor the agreement, partly due to Trump’s history with LIV Golf, whose tournaments have been held at his properties. Trump has previously urged players to join LIV Golf and celebrated the merger, which he views as beneficial to the sport. Conversely, a Harris administration may follow the Biden administration’s caution on mergers that reduce competition. Biden’s DOJ, for instance, blocked the Penguin Random House-Simon & Schuster merger to protect competition for writers’ labor. The professional golfers’ labor pool could be similarly impacted under the PGA-PIF deal.

As the PGA Tour and PIF navigate the DOJ’s antitrust review, which likely involves a Hart-Scott-Rodino (HSR) filing due to the transaction’s large scale, the election’s outcome might affect the DOJ’s approach. Regardless of the result, experts believe the parties will still need to work within the DOJ’s priorities, and this could mean restructuring the deal.

The DOJ review is not merely a formality; it’s a detailed examination that could include a “second request” for extensive information, potentially prolonging the process. Moreover, concerns about Saudi Arabia’s human rights record could draw additional scrutiny from Congress.

While neither campaign has yet commented publicly on the issue, the PGA Tour, PIF, and DP World Tour remain aware that the political climate following the election will likely shape their path forward.