Saudi Arabia officials make jail threat to US bankers over golf merger, inquiry hears.

Progress towards a deal to unite the sport has been hindered by the intervention of the US government, even though the merger between the PGA Tour and LIV Golf offers hope to heal the existing divide in golf.

An inquiry has revealed that Saudi Arabia warned bankers and consultants participating in a LIV Golf merger that they would face imprisonment if they assisted with a US lawmakers’ investigation.

Back in November, the Public Investment Fund sued its advisers in a Saudi court in order to prevent information from being submitted to the US Senate committee on homeland security and governmental affairs. If anyone violates the court order, they could be imprisoned for 20 years, according to investment banker Michael Klein.

US lawmakers have criticised the advisers for not cooperating with the inquiry, noting only a fraction of the documents demanded in a congressional subpoena have been brought forward. As quoted by Bloomberg, Klein said at a hearing held by the committee: “This represents aberrant behaviour for a client, and, quite frankly, for the PIF, who has historically been a client that has operated with best practices of governance with us.

Klein, along with Rich Lesser from Boston Consulting Group, Bob Sternfals from McKingsey, and Paul Kleary from Teneo Strategy, was providing testimony.

According to Lesser, the PIF has made it clear that any disclosure of information about BCG’s work for PIF is considered a violation of Saudi law.

This law imposes criminal consequences, including imprisonment for up to 20 years, for anyone who discloses or spreads such information.

Thus, there is a potential danger of facing both criminal and financial penalties for the company and its employees residing or operating in Saudi Arabia. PIF issued a statement in response to the reports, asserting that the documents being requested are unparalleled in their significance to a foreign government entity.

The statement further emphasized that PIF has been actively and diligently working to facilitate the provision of the requested information through its advisors, in full compliance with the laws of Saudi Arabia, which should be treated equally to those of any other nation.

Despite assurances in July that PIF would only be a minority investor in the combined entity, many still oppose LIV Golf. Last year, various US investors were being considered to help finance the deal and avoid any political complications.

At the same time, recently, the PGA Tour agreed to a $3 billion investment agreement with Strategic Sports Group regarding a new business fund. SSG has pledged to immediately invest $1.5 billion in cash, with the possibility of that investment doubling in the future.

SSG’s agreement is substantial and will offer nearly 200 PGA Tour members the chance to own shares in PGA Tour Enterprises as a recognition of their loyalty and refusal to support LIV Golf. The discussions regarding a merger between the PGA Tour and LIV Golf are still ongoing, but they are currently affected by interference from the US Government. Please provide the text that you would like me to paraphrase.