Saudi-backed LIV Golf and the PGA Tour filed a motion late Friday to dismiss their antitrust lawsuit and countersuits, ending more than 10 months and enormous legal fees in a bitter dispute that turned into a business agreement.
The filing in a northern California federal court was more
procedural than a surprise.
It was a big part of the stunning June 6 agreement in which
the Public Investment Fund of Saudi Arabia, the PGA Tour and the European tour
became partners in a new for-profit company for commercial businesses.
The PGA Tour sent a notice to players, which was obtained by
The Associated Press, that said, “Pursuant to the Framework Agreement announced
last week, documents have now been filed with the court bringing a formal end
to all pending litigation between the PGA Tour, PIF and LIV Golf.”
The Wall Street Journal has reported that tour executives
told the staff legal fees were closing in on $50 million. As part of the
motion, all sides are responsible for their legal fees.
Along with ending the antitrust complaints against each
other, the motion asks for dismissal of an appeal involving whether the PIF and
its governor, Yasir Al-Rumayyan, would have to provide testimony.
The PIF and Al-Rumayyan were trying to claim an exemption
from the Foreign Service Immunity Act. A federal magistrate had ruled they were
not exempt because of the PIF’s involvement in the commercial enterprise of LIV
Golf.
All requests were to dismiss with prejudice, meaning neither
side’s lawsuit can be reopened.
Phil Mickelson and Bryson DeChambeau were among 11 players
who sued the PGA Tour in early August when they were suspended for defecting to
LIV Golf. The rival league paid signing fees of $100 million or more, in
addition to the $25 million in prize money for 48-man fields with guaranteed
money at every tournament.
The lawsuit claimed the PGA Tour has used monopoly power to
try to squash competition. The PGA Tour won an early court decision when a
federal judge denied a temporary restraining order that would have let three
LIV Golf players to compete in the tour’s postseason.
LIV Golf joined the lawsuit and eventually all 11 players
pulled out of the lawsuit.
The PGA Tour filed a countersuit in September accusing LIV
of “tortious interference” by inducing top players to breach contracts by
claiming the tour could not enforce its rules.
Any jury trial was not expected until the middle of 2024 at
the earliest as both sides wrangled over discovery issues.
But the case is not done yet. The New York Times earlier on
Friday filed a motion to intervene, asking the court to unseal documents. The
Times says the public’s right to the information outweighs the tour and LIV
Golf’s claims certain documents could cause “competitive harm.”
That request is to be heard on Aug. 3.
Also, the Justice Department has begun to examine the
agreement between the PGA Tour and LIV Golf’s Saudi backers to determine
whether it violates federal antitrust statutes. The agreement contained few
details on how the new company will operate and what becomes of LIV Golf, which
is in its second season. -AP
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