A front row seat to democracy. Good morning everyone. We will come to order. And i want to thank the witnesses for attending today. I want to thank my colleague, senator johnson, for participating in the invitation to you, and the collaborative approach to this hearing and our inquiry. And to all of our staff for their hard work on the memorandum that we have distributed with documents which i will put into the record without objection. Todays hearing is about much more than the game of golf, it is about how brutal, reclusive regime can buy influence and even take over a cherished american institution. To cleanse its public image. It is a regime that has reportedly killed journalist, jailed and tortured dissidents, fostered the war in yemen and supported other terrorist activities, including the nine 9 11 attack on our nation. Today is about sports but also about hypocrisy, how fast sounds of money can induce individuals and institutions to betray their own values and supporters or perhaps reveal a lack of values from the beginning. It is about other sports institutions that could fall prey if they are leaders let it be, let it be all about the money. Perhaps this to state the obvious, sports are central to our culture and society. They have huge indications for our way life, our local economies and communities. Close to home and our image abroad. Athletes, like the pga tour, golf players are role models. They are ambassadors of our values, and that concern is today are vital to our national interest. To have them taken over by a repressive foreign regime certainly is a matter of National Security. We hope that todays hearing will help us uncover not only the reasons for the pga tour suddenly reversing its opposition to the liv golf takeover and what it means to golf, but also to understand what similar investments by repressive regimes or other countries with deep pockets could mean for our cost. For our National Security. And for the world. For two our National Security and for the world. For two years the most vehement opposition to the saudi governments taking over this sport of golf in america and the most vehement criticisms of saudi sports washing came from the pga tour leaders themselves. They enlisted fans, sponsors, the 9 11 family, members of Congress Like myself, some of those leaders sat across for me at cromwell, connecticut, and asked me to support them. And i did. All on the promise and commitment to maintaining the pga tour as an independent cherished iconic american institution. And jay mott hemp himself, he said in june, just a year before june 6th, i would ask any player that had left or any player that would ever consider leaving. Have you ever had to apologize for being a member of the pga tour, the players admirably and heroically stood by the pga tour and said, no. To tens of millions of dollars. Likewise, members of the 9 11 families were with us and stood by the pga tour. And others of us who did the same. And then suddenly on june 6th, everything changed. The sports world was shocked by the announcement that the pga tour was entering into an agreement to combine forces with the Saudi ArabianPublic Investment fund, the saudi sovereign wealth fund, which owns liv golf. It is an instrument of the saudi government. And the deal was not to take over a team, but the entire sport. Not just an individual saudi investor, but the government. The government of saudi arabia. So it was no ordinary investment. The saudi Public Investment fund, node as pit, is closely aligned with the saudi government. And it is headed by who is a negotiator and party to this deal. So, understandably, there was a feeling of betrayal. It was among many of the individuals and groups that supported the pga tour, including from the players themselves. And we are here today because not only did it raise that feeling of betrayal, and jon rahm, familiar, to all of us said it best. The general feeling is that people feel betrayal from management. The future of other sports in the United States, what led the pga tour to change its position . Was it only the hope of ending litigation or was it also unspecified amount of saudi investment that would come of it . How much money did pif offer the pga tour . And what other sources of money were sought . Given these questions and their implications, not only for the future of professional sports but for foreign influence and global human rights, this subcommittee launched an inquiry into this deal. Ive already put into the record the memorandum that we circulated that incorporates the documents that have been produced about some of what weve learned. Clearly, although the agreement itself is seemingly on specific, vacuous and simply an agreement to agree, we know from it that the saudi government will have an equity dominance and ownership of this institution through its investment and we know that the pga tour surrendered once for the saudi investment of money, and there is no assurance in this agreement that it would not do so again. We have learned from the documents some facts that also indicate that the pga tour will be dominated in this agreement. We learned that, after rebuffing, the pif this early as january. The pga Tour Representative reached out to pif leader, after he was told that the saudis would double down on their investment, and quote. We learned that saudi arabias earliest vision for the tour included a teen golf tournament, culminating in saudi arabia. At least one highprofile pga event in saudi arabia and a global Gulf Investment Fund managed by the pif. We learned that one night, one night before the Framework Agreement between the pif and the pga tour was signed, the pif added a non disparagement clause that appears to prevent the pga tour from criticizing saudi arabia. And it applies to the witnesses that are before us, apparently today. We learned that governor al roman will not only become the chairman of the pga tours board, but he will sit on the executive committee of the new company that is to be formed where he will, and this direct quote, from a document we received, quote, provide pif with Strong Influence over the new company. And we learned that what is not in the agreement, which may be as important as what is explicitly there, very little is explicit, that there are potential side agreements and understandings. Only in the internal documents that were reviewed by this committee to be learned that pga tour officials prepared a signed agreement providing that liv ceo, greg norman, would be terminated upon execution of the final agreement. We dont know whether this agreement was executed, but there are other documents such as the talking points that are now in the record for to talk to the policy board that indicate the parties maintained this understanding about terminating norman after the agreement was announced. We still dont know whether there are other side agreements, or other understandings that may exist. Or what they might say. We dont know what assets the pga tour will place on the new entity, or how it will maintain its nonprofit status. Certainly, a profoundly important question. What assets it gained while it had nonprofit status, it may be transferred now to a for profit entity raising a serious questions it ought to concern this committee of congress. And especially since it has indicated that there will be an active commercial role for this new entity. We also dont know what will happen to players who may want to speak out against saudi arabias human rightsabuses. They apparently are bo what the deep pockets of the saudi government and other regimes could mean to the future of our country and the world. With that i will turn to the Ranking Member for his opening remarks. I want to welcome the witnesses and thank you for appearing voluntarily before our subcommittee. Let me say i love the game of golf, i enjoy playing it, i wish i was a lot better. I enjoy watching it. Golfers succeed or fail on their own. Every golfer can empathize with a probe hole thing on that holding onto a oneshot lead to sink a crucial part. Sympathized with the failed attempts. The game of golf has developed a handicap system that has allowed golfers like me, at a lower skill level, to enjoy competing with one another. Its the competition of the highest level that brings us here today. Every professional sport faces the exact same challenges. How you structure and maintain competition to attract large audiences and maximize the revenue base . How you compensate all the athletes do you compensate all the athletes . Many of the rules and practices these leagues engage in may run afoul of the clayton antitrust laws. In researching the legislative history of sports in america, i must agree with the assertion of a 1987 university of ime law review article miami law review article that says the governing relationship between professional Sports Leagues and the sherman act is confused and unsettled. A simple explanation for this confusion is that it is difficult to write a law that effectively addresses every situation and every reality. This hearing deals specifically with the reality, the pga tour faced when saudi arabia decided to get involved and invest in professional golf. According to its 2021 990 tax form, the pga tour has net assets worth 1. 25 billion. Saudi arabias Public Investment fund is estimated to be worth 600 million and 700 billion, 500 billion dollars more than the pga tour. Until the liv golf, multiple golf tournaments competed in a commercial marketplace, dictated by the commercial market loss and profit. Competing for top players with little, if any regard or expectation of a direct financial return. From a commercial standpoint it is not a fair fight. The pga tour viewed that liv as an existential threat. I have the deepest sympathy for the families of 9 11 and some other efforts of obtaining information being withheld by the saudi governments. I was approached by members of 9 11 families at the hall today, they gave me a document that summarizes the fbis investigation of saudi involvement in 9 11. Like so many documents i received that is heavily redacted. The fbi, the saudi government is not being transformed transparent with the 9 11 families. I want to support the 9 11 families in obtaining transparency and the truth. I would like to enter this document into the record so people can view for themselves the lack of transparency in the government and the saudi government. I may just say i spoke to the 9 11 families about this resistance by our own government, the fbi and other agencies, to provide the fact that are necessary for them simple justice i will join you in a bipartisan effort. I hope that is a bipartisan resort of this hearing. Sports washing is an issue but no amount of money can wash the stain of the brutal fascination and other humans rights abuses. It would be grossly unfair to expect pga tour to bear the burden of Holding Saudi accountable. Anyone who drives a car or uses oilbased products to sell fuels of coppers to the saudi Public Investment fund, for investment is a good thing. I would rather have them reinvest their oil wealth in china than in the u. S. Than china. If the kingdom is involved in the other sports and offers more rights to women wouldnt that be a good thing . Although i believe there are many more pressing issues congress and the subcommittee should be focused on. Like Many Americans i have interest in how this is resolved. Congress does have legitimate roles to play in settling the confusion in the law of governing professional sports. That said, i did not sign the us for information for the memo issued by the majority. Because the parties are in the midst of what should be a private negotiation. There is no deal to review increased investigations conducted by this subcommittee involve some member of wrong some wrongdoing. Theres nothing wrong with the pga tour negotiating a survival. Negotiations are delicate. Mostly private i fear Congress Getting involved in this stage could have negative consequences. I hope this can be constructive and address questions that the public has regarding golf in how to preserve the competition at the highest levels of the game. Although the various parties in this dispute bring different perspectives and objectives to it, my guess is they share a common love and respect for the game of golf, and want to see it succeed in the future. Thank you, mr. Chairman. I look forward your testimony. Thanks very much. Im going to introduce the witnesses. As is our custom, swear you in, and ask you to speak. We will have seven minute round questions, once your testimony is done. We welcome ron price, the chief operating officer at the pga tour. He has been leading the tours operations during the absence of the ceo. By the way, both of you, i hope will convey to the ceo for his continuing recovery. We are happy to learn he will be back later on this month. In the meantime you are representing the pga tour. It mr. Price has been responsible for the overall strategy to the pga tour including overseeing championship management Brand Communication golf course, property legal licensing and merchandising as well as culture , Board Governance and government relations. My understanding is that you join the tour in 1994. Jimmy done is referred to as a legendary dealmaker, served as a member of the pga tour policy board since january of this year. He is one of the chief architects of the pga tour deal that we are discussing today. Your name is repeated in many of the key documents, mr. Dunne. We are glad that you will enlighten us. Some of these questions. He is the vice chairman. He was one of the cofounders of Sandler Oneill and partners lp and independent investment, banking firm, over the past 2. 5 decades he has advised on some of the financial industrys largest acquisition transactions. We welcome you and look forward your testimony. Now, if you would please rise. Do you affirm that the testimony youre about to give is the truth, the whole truth, and nothing but the truth so help you god . I do. If you could proceed. Thank you. Chairman blumenthal, Ranking Member johnson and members of the sub midi, thank you for the opportunity russia subcommittee, thank you for the opportunity to testify. For the opportunity to testify. When the saudi funded liv golf tour launched its series in 2022, the two are facing unprecedented attack in defending our organization and its regulations. Regulations that each member agrees to at the start of every season. We were forced to suspend players. Both players made the choice to play for liv golf. They could play for the new league but they cannot come back and forth to prewrite free right off the working platform of the collective membership left behind. In august 2022, we were sued in an effort to invalidate our regulations. This created a fracture in golf unlike anything our support had experienced in decades and created a vision in are closely knit organization. We believe we have done everything we could possibly do to defend what we stand for, including spending tens of millions of dollars to defend litigation, instigated by liv golf. Thats significant funds diverted away from our core mission to benefit our layers a players and charity. As part of the litigation, we were successful in securing a court ruling that the Public Investment fund was not protected under sovereign immunity. With respect to the discovery, and potentially liability, that something which had never been done before in the u. S. Meanwhile, we have seen contended strength of the tour, thanks to the loyalty, talent and performance of the remarkable players, we are proud to call members of the pga tour. However, it was very clear to us, and to all who love the pga tour, and the game of golf as a whole that the dispute was undermining both of our sport the growth of our sport and threatening the survival of the pga tour. It was a sustainable unsustainable. Our players, our fans, our partners, our employees, our charities, and the communities we support would lose in the long run. Instead of losing control of the pga tour, we pursued a piece that will not only end the divisive litigation battles, but would also maintain the pga tour structure, mission, and longstanding support for charity. Negotiations toward a definitive agreement are underway, the Framework Agreement includes important safeguards that ensures the two were will operate fundamentally as it does today. The two were will control is on tour will control its operations, the board of the new pga subsidiary, and will be the governing body for competitive golf in connection with any combined golf operations. The agreement provides clear, explicit, and permanent safeguards, that ensure the tour would lead the decisions that shape our future, and that we will help control over our operations, strategy and continuity of our mission. I understand the need for additional clarity, around how and why the deal came together. I welcome the opportunity to shed light on the predicament we found ourselves in. One which we did not seek. One that we could not sustain indefinitely, but one for which we found a workable productive solution that benefits all who love the game of golf and the pga tour. Thank you. I will be happy to answer your questions. Thank you. Mr. Dunne. Mr. Chairman, Ranking Member johnson, members of the subcommittee. My name is jimmy dunne. Since january, i have served as an independent director on the pga tour policy board. To hold that position it is a real privilege fo rme. I joined the board at a time of great concern for those who love golf. Some players left the pga tour to join liv golf, others were under pressure to do the same. The pga tour and liv were facing each other in litigation. There is division attention. You can feel it spreading to fans and sponsors. My concern is that it all continued, expensive legal fights, every day, wondering which player was going to leave next. A fan base tired of hearing that. Sponsors nervous. Golf, as we know it would be damaged forever. As Board Members, we have a responsibility to protect the game. As the situation appeared to me, the tour had to move towards a solution of the differences that were causing way too much disruption. And we had