LIV Golf has won a rare antitrust case against the PGA Tour .
Judge Beth Labson Freeman, in the U.S. Northern District of California Court, ruled that Saudi Arabia’s Public Investment Fund (the Kingdom’s sovereign fund) and its governor Yasir al-Rumayyan are both subject to depositions and discovery in the United States. This was a major blow for LIV’s Legal team.
LIV’s attorneys then appealed to the United States Court of Appeals of the Ninth Circuit to further delay the process of discovery. On Wednesday, Judge Freeman granted Al-Rumayyan and the PIF’s motion to stay discovery pending appeal. According to Jodi balsam a professor of Brooklyn Law School and a former NFL counsel, the decision could take between 1-2 years.
The Tour felt that it was unfair to be forced to comply with discovery when the PIF and Al-Rumayyan could push the issue to the future, and claimed LIV lawyers would benefit from “gamesmanship.”
Judge Freeman denied the PGA Tour’s cross-motion to stay all discovery.
Memories fade and documents can disappear with time. The court’s filing stated that a complete halt to discovery would be detrimental to the litigation process. Judge Freeman called the Tour’s claim of gamesmanship “unconvincing.”
The initial lawsuit filed by Phil Mickelson in August 2022, and which included 10 other players has been taken over since by LIV Golf. LIV Golf is almost entirely financed by PIF. The Saudi Arabian government created the wealth fund in 1971 to invest in projects and companies. It is estimated to be worth more than $650 billion.
The Tour then filed an answer against LIV. The court ruled in February that the Tour can add Al-Rumayyan and the PIF as defendants to its countersuit. This drags the financiers further into the weeds.
What’s next? Antitrust cases do not only investigate a single company but an entire industry. The discovery phase can be long and tiring. The case, currently scheduled for trial on Jan. 8, 20,24, is still in its early stages. The Tour has proposed a trial date of November 12, 2024, while LIV has suggested a May 17, 2024.
PIF and Al-Rumayyan may comply if they lose their appeal and provide documents and depositions, even though LIV’s lawyers claimed previously that participating in depositions was against Saudi Arabian law. The ramifications of complying could negatively impact the PIF’s investments in the States. Al-Rumayyan, does he want to address questions regarding the PIF’s motivations? LIV Golf is a sport that has been used by Saudi Arabia for years to cover up its human rights record. It’s unlikely.
The court could issue a contempt ruling, leading to fines and sanctions that could completely undermine LIV’s case.
There has not yet been a decision on the revised trial deadlines, but comments made in previous filings indicate that the case could be delayed if the discovery is delayed. We will continue to wait until then.
