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America September 13, 2023 4 mins read

Blumenthal Subpoenas Saudi-backed LIV Golf: Showdown Looms Over Transparency and Human Rights

America ı By Rihem Akkouche

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Blumenthal Subpoenas

In a gripping turn of events, Senator Richard Blumenthal, D-Conn., has upped the ante in his relentless pursuit of transparency, issuing a subpoena that could rock the golfing world and expose an alleged Saudi effort to launder its tarnished image through sports investments.

Blumenthal Subpoenas: Chung Under the Spotlight

Blumenthal, leading the Senate's Permanent Subcommittee on Investigations, has been on a crusade for answers regarding the Saudi Public Investment Fund's (PIF) extensive foray into the U.S. economy, especially its golfing venture alongside the PGA Tour and LIV Golf. But PIF officials, shrouded in secrecy, have repeatedly snubbed the senator's inquiries.

In a bold move that has sent shockwaves through the corridors of power, Blumenthal served a subpoena to Jason Chung, the senior director of PIF's American subsidiary, USSA International LLC. Chung is now compelled to testify at the forthcoming October 13 hearing and hand over a treasure trove of documents relating to PIF's expansion plans on U.S. soil.

"PIF has demonstrated unwillingness to voluntarily cooperate with the subcommittee's inquiry," Blumenthal asserted, as if he were sounding the alarm on a high-stakes espionage thriller. "Given the importance of the subcommittee's inquiry and PIF's continued refusal to cooperate voluntarily, this subpoena is necessary."

Both Chung and the enigmatic PIF have thus far remained tight-lipped about their next moves.

From Lawsuits to a Startling Alliance

The PGA Tour and the plucky upstart, LIV Golf, had seemed destined for a courtroom showdown over antitrust and contract disputes. That was until the shocking announcement on June 6, when they decided to bury the hatchet and join forces to create a new professional golfing entity.

Behind closed doors, negotiations are unfolding that could reshape the golfing landscape. As lawmakers clamor for details, they warn of the perilous implications of a burgeoning Saudi influence within the heart of American business.

Blumenthal Subpoenas :  Sportswashing Concerns

Senator Blumenthal's prime concern is whether Saudi Arabia's westward investments are a smokescreen to cleanse its reputation as a human rights violator, a scheme often dubbed "sportswashing." It's as if he's unraveling an intricate puzzle.

"More visibility about PIF's U.S. investments is also needed to guard against efforts like this and to allow Americans to know the true source of favorable reporting," Blumenthal emphasized, casting a light on a hidden world of intrigue.

Human Rights Watch's Grim Assessment

In a dramatic twist at a recent hearing, Human Rights Watch Saudi Arabia researcher Joey Shea delivered a chilling verdict. "Human Rights Watch does not support the purchase or merger of any league by a serious abuser like the Saudi government through the PIF, without clear human rights safeguards in place for its operations," Shea declared, as if delivering a thunderous verdict.

Beyond Golf: 9/11 Shadows Loom

While the proposed PGA Tour/LIV Golf merger has piqued the interest of many, Senator Ron Johnson, R-Wis., steers the ship towards darker waters. "Blumenthal's probe is expanding well beyond that," he asserted, comparing it to a voyage into uncharted territory. His focus? The Saudi government's alleged role in the 9/11 attacks.

Presidential administrations have kept many pertinent documents hidden away, and those that have surfaced have been riddled with redactions, according to Johnson. A cloud of secrecy hangs over these revelations.

Blumenthal Subpoenas : PIF's Sovereign Immunity Battle

PIF, though largely silent, has not taken this onslaught lying down. In a move reminiscent of a legal drama, the fund highlighted a letter it sent to Blumenthal on August 23, reiterating concerns about sovereign immunity.

Akin Gump Strauss Hauer & Feld LLP attorney Raphael A. Prober, representing PIF, argued that the subcommittee was not respecting the sovereignty and diplomatic interests at play. Yet, PIF offered an olive branch, expressing willingness to work with Blumenthal on a compromise.

Despite these diplomatic maneuvers, the PIF and HE appear open to engaging with the subcommittee on the agreement's details. It's a standoff with potential global consequences.

Blumenthal's Immunity Trump Card

In a bold countermove, Blumenthal preempted any immunity claims by invoking the Foreign Sovereign Immunities Act (FISA). His legal mastery was on full display as he explained that FISA contains exceptions for "commercial activity" within the U.S.

"FISA also withdraws sovereign immunity protection for acts 'performed in the United States in connection with a commercial activity of the foreign state elsewhere' and for acts committed 'outside the territory of the United States in connection with a commercial activity of the foreign state elsewhere' if those acts cause direct effects within the United States," he elucidated, casting himself as a legal virtuoso.

As the world watches, the battle for transparency and human rights takes center stage, with Blumenthal's subpoena setting the stage for a showdown that could redefine the future of golf and shine a light on the shadowy dealings of a global powerhouse.

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Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

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