Saudi officials file letter challenging subpoenas in LIV PGA lawsuit

Saudi officials file letter challenging subpoenas in LIV-PGA lawsuit

Associated Press10:02 PM ET2 Minute Read

Saudi Arabia is contesting a federal judge’s decision ordering its sovereign wealth fund and the fund’s governor to produce documents and testimony in LIV Golf’s antitrust lawsuit against the PGA Tour.

The kingdom’s lawyers on Thursday filed a letter questioning the grounds given by a judge for allowing subpoenas from the public investment fund and its governor, Yasir al-Rumayyan.

The letter was sent to US District Judge Beth Labson Freeman, who is overseeing the case in the Northern District of California.

US Judge Susan van Keulen said in a Feb. 16 ruling that the PIF and al-Rumayyan are not protected under the Foreign Sovereign Immunity Act due to a commercial activities exception.

The dispute revolves around LIV’s argument that the PIF and al-Rumayyan have extensive oversight of the opposing league. The PGA Tour says documents obtained during the discovery indicate they were actively involved in signing players to LIV Golf.

According to court documents, the PIF owns 93% of LIV Golf, which has reportedly paid over $100 million in contract fees to players including Phil Mickelson, Dustin Johnson, Brooks Koepka and Bryson DeChambeau over the past year.

The letter also states that van Keulen indicated that the PIF would have waived its immunity had it authorized LIV Golf to sue the PGA Tour.

The PGA Tour banned players who joined LIV Golf from attending its events, and nine players — including Mickelson and DeChambeau — filed an antitrust lawsuit Aug. 3. LIV Golf soon joined as plaintiffs and only three players – DeChambeau, Peter Uihlein and Matt Jones – remain as plaintiffs.

“Your arguments have far-reaching implications for Saudi Arabia beyond the present case,” said the letter, which was filed by Washington law firm Kellogg, Hansen, Todd, Figel & Frederick.

The letter said that while van Keulen’s ruling said that al-Rumayyan – a minister in the Saudi Arabian government – met the common law requirements for immunity for foreign officials, this law contains an exception to immunity for commercial activities .

“The recognition of such an exception to the common law immunity of foreign officials also has far-reaching implications for Saudi Arabia,” the letter said.

The PIF and al-Rumayyan claim that enforcing subpoenas in the US would force them to violate Saudi law against disclosure of confidential information.

The letter said Saudi Arabia plans to file a brief in court that would provide interpretations of the commercial activity exception to the Foreign Sovereign Immunity Act and enforcement of Saudi Arabian law.

Freeman, meanwhile, ruled that the PGA Tour could list the PIF and al-Rumayyan as defendants in its counterindictment.