Wyden Calls Out Saudi Golf Tax Breaks

Senator Ron Wyden (D-Ore.), the Chairman of the Senate Finance Committee, has announced a comprehensive investigation into the Saudi Arabia Public Investment Fund's (PIF) 'merger' agreement with the PGA Tour, raising serious concerns about potential national security, tax compliance, data privacy, and censorship issues.

The wide-ranging probe follows news of a significant financial deal between the PGA Tour, a tax-exempt organization under 501(c)(6), and Saudi Arabia’s PIF, a sovereign wealth fund with assets estimated at more than $600 billion.

The nature of the deal and the formation of a new for-profit entity that includes the PIF has drawn the attention of lawmakers, causing Senator Wyden to formally address the issue with the PGA leadership.

Wyden expressed concern about the ambiguous structure of the PGA-PIF agreement, potential conflicts of interest arising from PGA Board of Directors Chairman Ed Herlihy’s dual role as a partner in Wachtell Lipton, the law firm representing the PGA Tour, and questions regarding the PGA Tour’s tax compliance as a tax-exempt organization.

The senator also raised questions about the potential national security implications due to possible PGA Tour’s ownership interests in real estate near U.S. military or sensitive manufacturing facilities.

Further, the investigation will scrutinize the deal’s potential implications for data privacy and censorship of individuals involved with the Tour, given Saudi Arabia's record of human rights violations.

Alongside the investigation, Wyden announced his intention to introduce legislation that would revoke the Saudi PIF’s special tax treatment on certain types of investment income. Such a move could significantly impact the Saudi sovereign wealth fund, adding further pressure to the already strained U.S.-Saudi relations.

“The PGA Tour’s involvement with PIF raises significant questions about whether organizations that tie themselves to an authoritarian regime should continue to enjoy tax-exempt status in the United States,” Wyden wrote in his letter to the PGA Tour leadership.

The Senator also drew attention to Saudi Arabia's oil profits, remarking there was "no good reason to help them along with a taxpayer subsidy."