Recently, the US Justice Department has requested that the PGA Tour and Saudi Arabia’s Public Investment Fund remove a clause from their agreement that would have allowed the Saudi fund to poach employees from the PGA Tour. The clause, which was part of a $20 billion investment deal between the two entities, would have allowed the Saudi fund to hire away any PGA Tour employees without having to pay any compensation or damages.
The Justice Department argued that this clause was in violation of US antitrust laws, which prohibit agreements between competitors that limit competition. The PGA Tour and the Saudi fund had argued that the clause was necessary to ensure that the Saudi fund could access the best talent available, but the Justice Department disagreed.
The Justice Department’s request is a welcome development for the PGA Tour, which had expressed concerns about the clause. The Tour had argued that it would have been difficult to retain its top talent if the clause had been allowed to stand, as it would have allowed the Saudi fund to poach its employees without any compensation or damages.
The Justice Department’s request is also a reminder of the importance of antitrust laws in protecting competition and ensuring fair play. By preventing agreements between competitors that limit competition, antitrust laws help to ensure that businesses compete on a level playing field and that consumers get the best products and services available.
It remains to be seen whether the PGA Tour and the Saudi fund will comply with the Justice Department’s request and remove the poaching clause from their agreement. In any case, this episode serves as an important reminder of the importance of antitrust laws in protecting competition and ensuring fair play.
