`
`
`
`KEKER, VAN NEST & PETERS LLP
`ELLIOT R. PETERS - # 158708
`epeters@keker.com
`DAVID SILBERT - # 173128
`dsilbert@keker.com
`R. ADAM LAURIDSEN - # 243780
`alauridsen@keker.com
`NICHOLAS S. GOLDBERG - # 273614
`ngoldberg@keker.com
`SOPHIE HOOD - # 295881
`shood@keker.com
`633 Battery Street
`San Francisco, CA 94111-1809
`Telephone:
`415 391 5400
`Facsimile:
`415 397 7188
`
`Attorneys for Defendant PGA TOUR, INC.
`
`
`SKADDEN, ARPS, SLATE, MEAGHER &
`FLOM LLP
`ANTHONY J. DREYER - (pro hac vice)
`anthony.dreyer@skadden.com
`KAREN M. LENT - (pro hac vice)
`karen.lent@skadden.com
`MATTHEW M. MARTINO - (pro hac vice)
`matthew.martino@skadden.com
`One Manhattan West
`New York, NY 10001
`Telephone:
`212 735 3000
`Facsimile:
`212 735 2000
`
`SKADDEN, ARPS, SLATE, MEAGHER &
`FLOM LLP
`PATRICK FITZGERALD - (pro hac vice)
`patrick.fitzgerald@skadden.com
`155 North Wacker Drive
`Chicago, Il 60606
`Telephone:
`312 407 0700
`Facsimile:
`312 407 0411
`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF CALIFORNIA
`SAN JOSE DIVISION
`
`
`
`MATT JONES; BRYSON DECHAMBEAU;
`PETER UIHLEIN; and LIV GOLF, INC.,
`Plaintiffs,
`
`v.
`PGA TOUR, INC.,
`Defendant.
`
`PGA TOUR, INC.,
`Counterclaimant,
`
`v.
`LIV GOLF, INC.,
`Counterdefendant.
`
` Case No. 5:22-cv-04486-BLF
`
`DEFENDANT PGA TOUR, INC.’S
`ANSWER TO PLAINTIFFS’ AMENDED
`COMPLAINT & COUNTERCLAIM
`JURY TRIAL DEMANDED
`Judge:
`Hon. Beth Labson Freeman
`Date Filed: August 3, 2022
`
`Trial Date:
`
`January 8, 2024
`
`
`
`
`
`
`
`
`1912096
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`PGA TOUR, INC.’S ANSWER TO PLAINTIFFS’ AMENDED COMPLAINT & COUNTERCLAIM
`Case No. 5:22-cv-04486-BLF
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`Case 5:22-cv-04486-BLF Document 108 Filed 09/28/22 Page 2 of 72
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`ANSWER TO AMENDED COMPLAINT
`Defendant PGA TOUR, INC. (“the TOUR”), by and through its counsel of record,
`answers Plaintiffs MATT JONES, BRYSON DECHAMBEAU, PETER UIHLEIN (the “Player
`Plaintiffs”), and LIV GOLF INC.’s (“LIV”) (collectively, “Plaintiffs”) Amended Complaint as
`follows:
`LIV, a new golf league paid for by Saudi Arabia’s sovereign wealth fund, seeks to wield
`the antitrust laws as a cudgel instead of engaging in an honest effort to compete in the market for
`professional golf, while at the same time free riding on the TOUR’s decades-long investment in
`tournament promotion for the various tours it operates, and in particular the PGA TOUR. Both
`LIV and the Player Plaintiffs knew that participating in LIV events while they remained members
`of the PGA TOUR, without a release from the TOUR’s Commissioner, would breach the Player
`Plaintiffs’ contractual obligations and would result in their suspensions.
`The PGA TOUR’s Player Handbook & Tournament Regulations (the “Regulations”)
`contribute to the success of scheduled TOUR events, help the TOUR fulfill its own contractual
`obligations (including its obligation to sponsors and media partners to ensure representative
`fields), and provide substantial benefits to tournament sponsors, title sponsors, broadcasters, local
`host organizers, and ultimately, the players. The Regulations make the TOUR’s media rights
`more valuable to sponsors and content distributors, leading to higher sponsorship and broadcast
`revenues, which in turn are distributed to members in the form of prize money and additional
`benefits.
`Through this lawsuit, LIV asks the Court to invalidate these wholly legitimate provisions
`with the stroke of a pen after inducing the remaining Player Plaintiffs to violate those same
`regulations with hundreds of millions of dollars in Saudi money. The Player Plaintiffs that have
`remained in the case—eight of the original eleven players have withdrawn their names from this
`lawsuit already—want only to enrich themselves in complete disregard of the promises they made
`to the TOUR and its members when they joined the TOUR.
`But there is no actual injury to Plaintiffs here, and no violation of the law. LIV, by its own
`admission, has succeeded in attracting numerous elite professional golfers to participate in its new
`
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`PGA TOUR, INC.’S ANSWER TO PLAINTIFFS’ AMENDED COMPLAINT & COUNTERCLAIM
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`league. LIV has held numerous events with full fields and has announced a full season for 2023.
`Both LIV and the Player Plaintiffs baked the financial cost of their suspensions into LIV’s
`exorbitant signing bonuses, making the Player Plaintiffs whole. Moreover, while LIV and the
`Player Plaintiffs challenge the TOUR’s media rights and conflicting events polices as
`anticompetitive, LIV imposes similar—indeed far more restrictive—conditions on its players, and
`the Player Plaintiffs have agreed to them.
`This case is not about unfair competition—if anyone is competing unfairly, it is LIV, not
`the TOUR. Instead, it is a cynical effort to avoid competition and to freeride off of the TOUR’s
`investment in the development of professional golf. Plaintiffs’ allegations are baseless and
`entirely without legal merit. The TOUR responds herein to each allegation, and at the same time,
`files a counterclaim against LIV for tortious interference with the TOUR’s contracts with its
`members.
`1.
`The TOUR admits that it was created in the 1960s in part by the world’s best
`golfers at the time. The TOUR states that it is organized as a tax-exempt organization under
`Internal Revenue Code Section 501(c)(6). The TOUR otherwise denies the allegations in
`Paragraph 1 of the Amended Complaint.1
`2.
`The TOUR admits that PGA TOUR members are independent contractors. The
`TOUR further admits that it is organized as a tax-exempt organization under Internal Revenue
`Code Section 501(c)(6). The TOUR otherwise denies the allegations in Paragraph 2 of the
`Amended Complaint.
`3.
`To the extent Paragraph 3 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that it has suspended some players in
`accordance with the Regulations’ disciplinary provisions—including the remaining Player
`Plaintiffs—for their violations of the Regulations regarding conflicting events, media and
`
`
`1 The TOUR denies each and every allegation of Plaintiffs’ Amended Complaint—including the
`headings, footnotes, and captions—not specifically admitted or to which the TOUR has not
`otherwise responded in this Answer.
`
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`PGA TOUR, INC.’S ANSWER TO PLAINTIFFS’ AMENDED COMPLAINT & COUNTERCLAIM
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`marketing rights, and player conduct. The TOUR otherwise denies the allegations in Paragraph 3
`of the Amended Complaint.
`4.
`To the extent Paragraph 4 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR is without sufficient information to admit or deny
`Plaintiffs’ allegation that LIV canceled its 2022 business plan to launch a full league, and on that
`basis denies it. The TOUR admits that LIV launched its “Invitational Series” in 2022. The Tour
`further admits that it has suspended some players in accordance with the Regulations’ disciplinary
`provisions for their violations of the regulations regarding conflicting events, media and
`marketing rights, and player conduct. The TOUR otherwise denies the allegations in Paragraph 4
`of the Amended Complaint.
`5.
`The TOUR admits that it has amended its Regulations from time to time. The
`TOUR otherwise denies the allegations in Paragraph 5 of the Amended Complaint.
`6.
`To the extent Paragraph 6 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that it has suspended some players in
`accordance with the Regulations’ disciplinary provisions—including the remaining Player
`Plaintiffs—for their violations of the Regulations regarding conflicting events, media and
`marketing rights, and player conduct. The TOUR otherwise denies the allegations in Paragraph 6
`of the Amended Complaint.
`7.
`The TOUR admits that many of the best golfers in the world are PGA TOUR
`members. The TOUR further admits that PGA TOUR members agree each season to adhere to
`the Regulations, and that pursuant to the Regulations PGA TOUR members generally may not
`participate in any other golf tournament on a date when a PGA TOUR tournament is scheduled,
`absent permission from the TOUR. The TOUR further admits that, in certain circumstances,
`players may seek and receive releases to play in non-TOUR tournaments (and participate in non-
`TOUR media programs) that are held on the same dates as PGA TOUR events. The TOUR
`further admits that each player is generally eligible for up to three conflicting event releases per
`season, assuming he participates in fifteen PGA TOUR tournaments that season, and one
`additional release for each additional five PGA TOUR tournaments in which he participates. The
`
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`TOUR further admits that a release can be denied if the Commissioner determines that it would
`cause the TOUR to be in violation of a contractual commitment to a tournament sponsor, or
`would otherwise significantly and unreasonably harm the TOUR and its sponsors. The TOUR
`further admits that the Regulations preclude conflicting events releases for events held in North
`America. The TOUR further admits that the TOUR has granted releases for players when the
`releases do not violate one of these provisions or the TOUR’s obligations to its members. The
`TOUR further admits that the Commissioner did not grant releases to players seeking to play in
`conflicting LIV events and noted LIV’s intention to launch a series of events in North America as
`one reason for the denial of a release. The TOUR otherwise denies the allegations in Paragraph 7
`of the Amended Complaint.
`8.
`The TOUR admits that the Regulations also contain provisions related to member
`media rights, to which all PGA TOUR members agree on a season-to-season basis. The TOUR
`further admits that the quoted words appear in the Regulations, but otherwise denies the second
`sentence of Paragraph 8. The TOUR further admits that a portion of the media rights regulations
`provides that “[n]o PGA TOUR member shall participate in any live or recorded golf program
`without the prior written consent of the Commissioner, except that this requirement shall not
`apply to PGA TOUR cosponsored, coordinated or approved tournaments, wholly instructional
`programs or personal appearances on interview or guest shows.” The TOUR further admits that
`the media rights regulations provide that “‘[g]olf program’ for purposes of [the media rights]
`section means any golf contest, exhibition or play that is shown anywhere in the world[.]” The
`TOUR otherwise denies the allegations in Paragraph 8 of the Amended Complaint.
`9.
`The TOUR admits that PGA TOUR members are independent contractors. The
`TOUR otherwise denies the allegations in Paragraph 9 of the Amended Complaint.
`10.
`The TOUR admits that certain of the block quoted words in Paragraph 10 appear
`in a January 24, 2020 memorandum from Commissioner Monahan to the PGA TOUR Policy
`Board, but denies the misleading alterations to the text of the memorandum. The TOUR
`otherwise denies the allegations in Paragraph 10 of the Amended Complaint.
`
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`PGA TOUR, INC.’S ANSWER TO PLAINTIFFS’ AMENDED COMPLAINT & COUNTERCLAIM
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`11.
`To the extent Paragraph 11 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR denies the allegations in the introductory portion
`of Paragraph 11 of the Amended Complaint.
`a.
`The TOUR admits that it has suspended some players in accordance with
`the Regulations’ disciplinary provisions—including the Player Plaintiffs—for their violations of
`the Regulations regarding conflicting events, media and marketing rights, and player conduct.
`The TOUR otherwise denies the allegations in Paragraph 11.a of the Amended Complaint.
`b.
`The TOUR admits that it has amended its Regulations from time to time.
`The TOUR otherwise denies the allegations in Paragraph 11.b of the Amended Complaint.
`c.
`The TOUR is without sufficient information to admit or deny the accuracy
`of the quotations in Paragraph 11.c, and on that basis denies them. The TOUR otherwise denies
`the allegations in Paragraph 11.c of the Amended Complaint.
`d.
`The TOUR denies the allegations in Paragraph 11.d of the Amended
`
`Complaint.
`
`Complaint.
`
`e.
`
`The TOUR denies the allegations in Paragraph 11.e of the Amended
`
`f.
`The TOUR admits that it administers a program called PGA TOUR
`University designed to identify the best college golfers in the United States and provide them with
`playing opportunities, including on the Korn Ferry Tour. The TOUR further admits that college
`players must meet the eligibility requirements in the PGA TOUR University rules and
`regulations. The TOUR otherwise denies the allegations in Paragraph 11.f of the Amended
`Complaint.
`
`g.
`The TOUR is without sufficient information to admit or deny whether or
`why sponsors have cut ties with players who have joined LIV. The TOUR otherwise denies the
`allegations in Paragraph 11.g of the Amended Complaint.
`12.
`To the extent Paragraph 12 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR denies the allegations in Paragraph 12 of the
`Amended Complaint.
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`PGA TOUR, INC.’S ANSWER TO PLAINTIFFS’ AMENDED COMPLAINT & COUNTERCLAIM
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`13.
`The TOUR admits that PGA TOUR members are independent contractors. The
`TOUR further admits that Commissioner Monahan, consistent with the Regulations, imposed
`discipline on players for breaching their membership agreements with the TOUR, including
`imposing certain suspensions in accordance with the Regulations’ disciplinary provisions for
`violations of the Regulations regarding conflicting events, media and marketing rights, and player
`conduct. The TOUR further admits that Talor Gooch, Hudson Swafford, and Matt Jones earned
`sufficient points to finish the 2021-2022 TOUR season in the top 125 of the 2021-2022
`FedExCup Points list and, but for their suspensions for violations of the Regulations, they would
`have qualified for the first tournament of the 2022 FedExCup Playoffs. The TOUR otherwise
`denies the allegations in Paragraph 13 of the Amended Complaint.
`14.
`The TOUR admits that Player Plaintiffs have already been fully compensated by
`LIV for all suspensions the TOUR might impose and all of the other consequences that may flow
`from their decision to violate the Regulations. The TOUR otherwise denies the allegations in
`Paragraph 14 of the Amended Complaint.
`15.
`To the extent Paragraph 15 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that LIV has launched its business. The
`TOUR otherwise denies the allegations in Paragraph 15 of the Amended Complaint and denies
`that Plaintiffs are entitled to any relief.
`16.
`Paragraph 16 sets forth allegations related to an individual who is no longer a
`plaintiff in this action, and no response is required. Further, to the extent Paragraph 16 sets forth a
`conclusion of law, no response is required.
`17.
`Paragraph 17 sets forth allegations related to an individual who is no longer a
`plaintiff in this action, and no response is required. Further, to the extent Paragraph 17 sets forth a
`conclusion of law, no response is required.
`18.
`Paragraph 18 sets forth allegations related to an individual who is no longer a
`plaintiff in this action, and no response is required. Further, to the extent Paragraph 18 sets forth a
`conclusion of law, no response is required. member of the PGA TOUR; has been suspended by
`the TOUR; attended the University of Georgia; that he joined the Nationwide Tour in 2012; won.
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`19.
`To the extent Paragraph 19 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that Mr. Jones: is currently forty-two years
`old; was a member of the PGA TOUR; has been suspended by the PGA TOUR; attended Arizona
`State University; was a first-team All-American golfer; joined the Nationwide Tour in 2004;
`joined the PGA TOUR in 2008; won the 2014 Shell Houston Open; won the Emirates Australian
`Open in both 2015 and 2019 on the PGA Tour of Australasia; won the Honda Classic in 2021;
`played in over 350 PGA TOUR events; played in 20 events during the 2021-2022 PGA TOUR
`season; was within the top 50 of the FedExCup standings at the time of his suspension from the
`TOUR; and would have qualified to play in the first tournament of the 2022 FedExCup Playoffs
`if he had not been suspended for violations of the Regulations. The TOUR is without sufficient
`information to admit or deny Plaintiffs’ remaining allegations in Paragraph 19 of the Amended
`Complaint, and on that basis denies them.
`20.
`To the extent Paragraph 20 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that Mr. DeChambeau: was twenty-eight
`years old at the time the Amended Complaint was filed; was a member of the PGA TOUR; has
`been suspended by the TOUR; attended Southern Methodist University; won the 2015 NCAA
`individual and U.S. Amateur titles; made his PGA TOUR debut in the 2015 FedEx St. Jude
`Classic as an amateur; finished second in the 2015 UNIQLO Masters as a professional; finished
`tied for fourth in the 2016 RBC Heritage on the PGA TOUR; won the 2016 Korn Ferry DAP
`Championship; won the 2017 John Deere Classic; won the 2018 Memorial Tournament, Northern
`Trust, and Dell Technologies Championships; played for the United States in the 2018 Ryder
`Cup; won the 2019 Shriners Hospitals for Children Open and the Omega Dubai Desert Classic on
`the European Tour (now the DP World Tour); won the 2020 Rocket Mortgage Classic and the
`U.S. Open; won the 2021 Arnold Palmer Invitational; and played for the United States in the
`2021 Ryder Cup. The TOUR is without sufficient information to admit or deny Plaintiffs’
`remaining allegations in Paragraph 20 of the Amended Complaint, and on that basis denies them.
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`21.
`Paragraph 21 sets forth allegations related to an individual who is no longer a
`plaintiff in this action, and no response is required. Further, to the extent Paragraph 21 sets forth a
`conclusion of law, no response is required.
`22.
`To the extent Paragraph 22 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that Mr. Uihlein: was thirty-two years old
`at the time the Amended Complaint was filed; was a member of the Korn Ferry Tour and PGA
`TOUR; has been suspended by the TOUR; attended Oklahoma State University; won the 2017
`Nationwide Children’s Hospital Championship in 2017 on the Web.com Tour (now the Korn
`Ferry Tour); won the MGM Resorts Championship in 2021 on the Korn Ferry Tour; won the
`2013 Madeira Islands Open on the European Tour (now the DP World Tour); represented the
`United States in the 2009 and 2011 Walker Cups as an amateur; won the 2010 Eisenhower
`Trophy; won the 2010 United States Amateur Championship; and ranked within the top 50 of the
`Korn Ferry Tour’s regular season points list at the time of his suspension. The TOUR is without
`sufficient information to admit or deny Plaintiffs’ remaining allegations in Paragraph 22 of the
`Amended Complaint, and on that basis denies them.
`23.
`To the extent Paragraph 23 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that LIV is the sponsor of the LIV Golf
`Invitational Series, which will host the majority of its 2022 tournaments in the United States. The
`TOUR is without sufficient information to admit or deny Plaintiffs’ remaining allegations in
`Paragraph 23 of the Amended Complaint, and on that basis denies them.
`24.
`To the extent Paragraph 24 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits the allegations in Paragraph 24 of the
`Amended Complaint.
`25.
`To the extent Paragraph 25 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits for purposes of this action only that the
`Court has subject matter jurisdiction. The TOUR otherwise denies the allegations in Paragraph 25
`of the Amended Complaint.
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`26.
`To the extent Paragraph 26 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits for purposes of this action only that the
`Court may exercise personal jurisdiction over the TOUR. The TOUR further admits that it
`manages or operates TPC Harding Park within the Northern District of California. The TOUR
`further admits that, in 2022, it cosponsored the Fortinet Championship, the American Express, the
`Farmers Insurance Open, the AT&T Pebble Beach Pro-Am, the Genesis Invitational, and the
`Barracuda Championship in California, and that California hosted more PGA TOUR events than
`any other state in 2022. The TOUR otherwise denies the allegations in Paragraph 26 of the
`Amended Complaint.
`27.
`To the extent Paragraph 27 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR, for purposes of this action only, does not contest
`that this Court may exercise personal jurisdiction over the TOUR. The TOUR otherwise denies
`the remaining allegations in Paragraph 27 of the Amended Complaint.
`28.
`To the extent Paragraph 28 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR does not contest, for purposes of this action only,
`that venue is proper in this District.
`29.
`The TOUR is without sufficient information to admit or deny the allegations in
`Paragraph 29 of the Amended Complaint, and on that basis denies them.
`30.
`The TOUR admits that it cosponsors a series of tournaments each year and that
`there are four “major” tournaments each golf season: the Masters, the U.S. Open, the Open
`Championship, and the PGA Championship. The TOUR further admits that the Ryder Cup and
`the Presidents Cup take place on a bi-annual basis and that the Olympics take place every four
`years. The TOUR further admits that PGA TOUR members may compete in other tournaments
`outside North America that conflict with TOUR cosponsored events if they obtain a conflicting
`event release and/or a media rights release from the Commissioner under the Regulations. The
`TOUR otherwise denies the allegations in Paragraph 30 of the Amended Complaint.
`31.
`The TOUR admits that many of the world’s top golfers seek to compete on the
`PGA TOUR. The TOUR further admits that the TOUR’s investments in building its platform
`
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`have allowed the TOUR to offer some of the largest purses in professional golf. The TOUR
`admits that purses are generally larger on the PGA TOUR than on the DP World Tour, the Asian
`Tour, and the Korn Ferry Tour, but denies Plaintiffs’ allegations regarding purse sizes to the
`extent that they assert PGA TOUR purses are always larger than those on other tours. The TOUR
`admits that one way members can qualify for competition in the major tournaments is through
`success in PGA TOUR events. The TOUR otherwise denies the allegations in Paragraph 31 of the
`Amended Complaint.
`32.
`The TOUR admits that, historically, it has not held additional cosponsored events
`the weeks that the majors hosted in North America—the Masters, U.S. Open, and PGA
`Championship—are played. The TOUR further admits that it has cosponsored an event during the
`week of the major hosted outside of North America, the Open Championship. The TOUR further
`admits that one way, among many, that members can qualify for competition in some of the
`major tournaments is through success in PGA TOUR events. The TOUR is without sufficient
`information to admit or deny Plaintiffs’ allegation that LIV schedules its series and will schedule
`its league around the Majors, and on that basis denies it. The TOUR otherwise denies the
`allegations in Paragraph 32 of the Amended Complaint.
`33.
`The TOUR admits that the DP World Tour (formerly known as the European
`Tour) is another men’s professional golf players’ membership organization. The TOUR further
`admits that Seve Ballesteros, Nick Faldo, and Bernhard Langer played numerous events
`throughout their careers on the European Tour. The TOUR is without sufficient information to
`admit or deny the accuracy of the quotations in Paragraph 33 or Plaintiffs’ allegation that when
`DP World Tour members qualify for PGA TOUR membership, they almost invariably elect to
`immediately become PGA TOUR members, and on that basis denies them. The TOUR otherwise
`denies the allegations in Paragraph 33 of the Amended Complaint.
`34.
`The TOUR is without sufficient information to admit or deny the accuracy of the
`quotation or the allegations in Paragraph 34 of the Amended Complaint, and on that basis denies
`them.
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`35.
`The TOUR admits that the quoted language in Paragraph 35 appears in
`Commissioner Monahan’s January 2020 memorandum. The TOUR otherwise denies the
`allegations in Paragraph 35 of the Amended Complaint.
`36.
`To the extent Paragraph 36 sets forth a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits that it purchased a minority stake in
`European Tour Productions in 2020. The TOUR otherwise denies the allegations in Paragraph 36
`of the Amended Complaint.
`37.
`The TOUR admits that it organizes and manages the PGA TOUR Champions, the
`Korn Ferry Tour, and the developmental tours PGA TOUR Latinoamerica and PGA TOUR
`Canada. The TOUR further admits that the PGA TOUR Latinoamerica holds events in Latin
`America and that PGA TOUR Canada holds events in Canada. The TOUR further admits that it
`describes the Korn Ferry Tour as the path to the PGA TOUR. The TOUR further admits that the
`Asian Tour hosts events principally in Asia, that the Japan Tour hosts events in Japan, that the
`Sunshine Tour hosts events in South Africa, and that the KPGA Korean Tour holds events in
`South Korea. The TOUR otherwise denies the allegations in Paragraph 37 of the Amended
`Complaint.
`38.
`The TOUR denies the allegations in Paragraph 38 of the Amended Complaint.
`39.
`The TOUR denies the allegations in Paragraph 39 of the Amended Complaint.
`40.
`The TOUR admits that one way PGA TOUR members may gain spots in some of
`the majors, the Ryder and Presidents Cup teams, and the Olympics is through success in PGA
`TOUR events. The TOUR further admits that holding a ranking within the top 50 of the Official
`World Golf Rankings is one means through which players may qualify for some major
`tournaments. The TOUR further admits that the number of World Golf Ranking points earned in
`any particular tournament is, in part, determined by the Total Field Rating as determined by the
`Official World Golf Rankings. The TOUR further admits that Olympic Golf Rankings—which
`are used to determine eligibility for the Olympic golf field—are currently derived from World
`Golf Rankings. The TOUR is without sufficient information to admit or deny the accuracy of the
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`quotation in Paragraph 40, and on that basis denies it. The TOUR otherwise denies the allegations
`in Paragraph 40 of the Amended Complaint.
`41.
`To the extent Paragraph 41 sets for a conclusion of law, no response is required.
`To the extent a response is required, the TOUR admits Jay Monahan, Keith Pelley, Keith Waters,
`Seth Waugh, Mike Whan, Will Jones, Martin Slumbers, and Peter Dawson are members of the
`Official World Golf Rankings’ Governing Board. The TOUR otherwise denies the allegations in
`Paragraph 41 of the Amended Complaint.
`42.
`The TOUR admits its Articles of Incorporation, which were included in the
`TOUR’s application to the Internal Revenue Service for tax-exempt status under Section
`501(c)(6), state that one of the TOUR’s purposes is to promote the common interests of
`professional tournament golfers. The TOUR otherwise denies the allegations in Paragraph 42 of
`the Amended Complaint.
`43.
`The TOUR admits that the professional golfers who have earned the right to
`compete on the PGA TOUR are among the most skilled and popular professional golfers in the
`United States and the world, and that they include some of the biggest names in sports and
`popular culture in the United States and the world. The TOUR denies that Phil Mickelson, Bryson
`DeChambeau, Brooks Koepka, Henrik Stenson, Cameron Smith, Dustin Johnson, Louis
`Oosthuizen, Sergio Garcia, or Bubba Watson are currently members of the PGA TOUR. The
`TOUR otherwise denies the allegations in Paragraph 43 of the Amended Complaint.
`44.
`The TOUR admits that PGA TOUR members are independent contractors. The
`TOUR further admits that there are no teams to cover expenses for players on the TOUR. The
`TOUR otherwise denies the allegations in Paragraph 44 of the Amended Complaint.
`45.
`The TOUR admits that Jay Monahan is the Commissioner of the PGA TOUR and
`assumed that role on January 1, 2017. The TOUR further admits that Commissioner Monahan sits
`on the Board of the DP World Tour (formerly known as the European Tour), the Governing
`Board of the Official World Golf Rankings, and the Board of Directors and Executive Committee
`of the International Golf Federation. The TOUR otherwise denies the allegations in Paragraph 45
`of the Amended Complaint.
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`46.
`The TOUR admits that the quoted language appears in Commissioner Monahan’s
`January 2020 Memorandum to the TOUR Policy Board. The TOUR otherwise denies the
`allegations in Paragraph 46 of the Amended Complaint.
`47.
`The TOUR admits that the quality of play on the PGA TOUR continues to
`flourish. The TOUR otherwise de