Senator: PGA TOUR Has “Disqualified Itself” from Tax-Exempt Status

After the U.S. Senate heard testimony from PGA Tour representatives over the framework agreement among the tour, the DP World Tour, and Saudi Arabia’s Public Investment Fund (the group behind LIV Golf), it turns out that one senator was not impressed with what he heard.

Sen. Ron Wyden (D-Ore.), who is the chair of the Senate Finance Committee, introduced a bill that would revoke the PGA Tour’s long-enjoyed tax-exempt status.

Did you know that the PGA is tax exempt? No? Well you do now!

I just introduced a bill to revoke it. https://t.co/aLvzKou9wb

— Ron Wyden (@RonWyden) July 27, 2023

“An organization that betrays its own word and agrees to become a profit generator for Saudi Arabia’s brutal regime has disqualified itself for a tax exemption,” Wyden said.

As part of the agreement with the PIF, the PGA Tour would be looking to create a for-profit entity while also maintaining its tax-exempt status as an organization.

While being tax-exempt was a common thing for sports leagues, the NFL and Major League Baseball gave up their tax exemptions over the past 15 years. While those leagues did it voluntarily, Sen. Wyler believes the PGA Tour should have their privilege stripped away.

“Most of America’s big pro sports leagues gave up their tax exemptions voluntarily when their revenues climbed into the stratosphere, and they hadn’t even shamed themselves with Saudi blood money. An organization that betrays its own word and agrees to become a profit generator for Saudi Arabia’s brutal regime has disqualified itself for a tax exemption,” Wyden said.

“Many of the biggest sovereign wealth funds out there belong to countries that do not have our interests at heart, and there’s no good reason for hardworking American taxpayers to have to subsidize their huge profits.”

Today’s Senate PGA Tour & LIV Golf hearing will re-air at 9pm ET on C-SPAN.

Also, watch anytime online here: https://t.co/QhBH0CUuwW pic.twitter.com/mrw3kTdF11

— CSPAN (@cspan) July 12, 2023

The PGA Tour did not respond to the creation of the bill. Before the hearings earlier this month, PGA Tour Commissioner Jay Monahan, PIF Governor Yasir Al-Rumayyan, and LIV Golf CEO Greg Norman turned down invitations to testify.

Senators said they may seek testimony from the trio at a later date.

Cover Image via Twitter