PGA Tour tries a mulligan on the Hill

From: POLITICO Influence - Tuesday Jul 11,2023 10:04 pm

Jul 11, 2023

Presented by

With Lee Hudson, Daniel Lippman

THE PGA TOUR'S MULLIGAN: Congress got its first chance this morning to tee off against the blockbuster deal between the PGA Tour and LIV Golf — and top officials from the PGA Tour got a shot at reframing the alliance between the former rivals after what they conceded was a fumbled rollout last month.

— “I think we at the Tour clearly did not do a good enough job explaining” the scope of the framework agreement between the golf circuit and the Saudi Public Investment Fund, PGA Tour board member Jimmy Dunne said in his opening remarks to the Senate Permanent Subcommittee on Investigations. That gave rise to misunderstandings by “fans, players, the media, and Congress” alike, he argued.

— The Tour has tapped a Covington & Burling team that includes Rob Kelner, Brian Smith, Lanny Breuer and Angelle Baugh to spearhead its response to the spate of congressional inquiries into the deal. The firm handled the Tour's prep for today’s hearing, a person familiar with the arrangement told PI.

— Dunne and PGA Tour COO Ron Price both portrayed the deal with its Saudi-bankrolled rival as imperative to the Tour’s financial survival in the face of drawn out and costly litigation with LIV, and maintained that the PGA Tour will have the ultimate say over the new combined commercial entity, even as Price testified that the Saudi sovereign wealth fund could invest “north of $1 billion” if the deal goes through.

— As they sought to parry accusations of a Saudi “takeover” of golf, as well as the notion that the combined entity would only exacerbate the PGA Tour’s existing antitrust concerns, Dunne admitted there’d been missteps all around. The initial roll out of the deal, which was widely described as a merger, was “very misleading and inaccurate, which was everyone’s fault," he told lawmakers.

— Ahead of the hearing, the subcommittee released hundreds of pages worth of internal documents and communications turned over as part of its investigation into the deal, which included proposed talking points, PIF’s insertion during negotiations of a non-disparagement clause, and the possible dismissal of LIV CEO Greg Norman.

— Subcommittee Chair Richard Blumenthal (D-Conn.) grilled Price and Dunne over the non-disparagement language, eventually securing a commitment from Price that he “wouldn’t recommend” a final deal to the PGA Tour’s policy board for approval if it contained language barring players or executives from criticizing the Kingdom.

— The PGA officials faced piercing questioning from lawmakers at times, with Saudi Arabia’s alleged role in the 9/11 terrorist attacks and the assassination of journalist Jamal Khashoggi coming up numerous times. Other members of the subcommittee, mainly on the Republican side, were somewhat more restrained about the deal itself.

— Wisconsin Sen. Ron Johnson, the subcommittee’s ranking member, repeatedly expressed pause about delving into a business deal that is still being negotiated, telling reporters after the hearing that “I would like to give them the space to actually negotiate a deal that could, as best as possible, be a win-win situation for everybody.”

— Though officials from LIV and PIF were absent from the hearing, the standing room-only proceedings attracted several other notable faces, including the families of 9/11 victims once allied with the Tour and the Saudi wealth fund’s newest lobbyists. Brett Eagleson, the head of 9/11 Justice, sat toward the front of the hearing room with several others in red hats bearing the organization’s name.

— He told PI afterward that he’d provided both Johnson and Dunne, who invoked his personal connection to the 9/11 attacks, with redacted intelligence documents advocates say lay out Saudi Arabia’s ties to the attacks. He also slammed the PGA Tour for its lack of engagement with the families of 9/11 victims after “using our talking points, and our pain, and our anger, and our suffering” to attack LIV.

“It's always been a mistake to ignore the 9/11 community, and they ignored us in this deal,” Eagleson said, adding that he welcomed Dunne’s openness to a meeting with advocates and saw a path for the 9/11 community to eventually get behind a final deal if they were engaged in the process.

— “Look, I understand that the Kingdom of Saudi Arabia wants to be players on the world stage,” he said. But “they can't do any of that without addressing the elephant in the room.”

Happy Tuesday and welcome to PI. Send tips: coprysko@politico.com. And be sure to follow me on Twitter: @caitlinoprysko.

A message from Air Line Pilots Association, Int'l:

Weakening air safety standards should never be up for debate. Yet that is precisely what Congress is poised to do as it considers changing qualifications for pilot certification. Jeopardizing the U.S.’s gold standard for air safety and threatening passenger safety is a colossal mistake. Learn more here.

TRUMP PROSECUTION SHAKES UP FARA LEADERSHIP: The Justice Department’s FARA Unit is under new leadership, as the continued probe into former President Donald Trump by special counsel Jack Smith prompts some shuffling within the National Security Division.

— Jennifer Gellie, who’s led the FARA Unit since the early days of the Biden administration, will become principal deputy chief of the department’s Counterintelligence and Export Control Section, a DOJ spokesperson confirms. CES oversees not only FARA, but export control and sanctions enforcement, espionage and investigations into mishandled classified information. She’s been acting as the interim chief of CES for the past several months while Jay Bratt, the section’s permanent chief, has been detailed to the Trump prosecution.

— “This is one of several senior positions and roles created as part of NSD’s ongoing commitment to enforcing sanctions and export controls, preventing the illegal transfer of disruptive technologies, and ensuring corporate compliance with national security laws and regulations.”

— Given the flurry of activity within CES over the past few months (the section is currently handling the prosecution of suspected Pentagon leaker Jack Teixeira; continues to prosecute new FARA and other foreign influence cases and is looking to add more than two dozen new prosecutors, while the Trump prosecution could stretch to the end of the year at the earliest), the FARA Unit has been under interim leadership as well.

— DOJ trial attorney Evan Turgeon has been filling in for Gellie on an acting basis for at least part of that time. His resume of past and present illegal foreign lobbying prosecutions includes the case against former Michael Flynn business partner Bijan Rafiekian, former Rep. David Rivera (R-Fla.), former Ambassador Richard Olson and former FBI agent Charles McGonigal, court filings show.

— The DOJ spokesperson told PI that Gellie’s role “is currently filled by a section attorney on an acting basis,” and noted the department is hiring for a permanent FARA chief who will report to Gellie in her new role, with the expectation that a selection will be made “soon.”

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FOREIGN GOVERNMENTS EYE DESANTIS: As Florida Gov. Ron DeSantis “emerges as the most viable GOP presidential alternative to former President Donald Trump, foreign entities are maneuvering to make sure that they had a line into his camp,” our Hailey Fuchs reports.

— They include Qatar, which re-upped its contract with Rubin, Turnbull and Associates, run by DeSantis ally Bill Rubin, a day before the governor announced his bid for the White House, and the Japanese government, which hired Ballard Partners in April just before DeSantis embarked on a trade mission to the country — former aide and now-Ballard lobbyist Adrian Lukis in tow.

— Brian Ballard, who’s raised money for both DeSantis and Trump over the years, “maintained that his work for Japan is bipartisan and for both Florida and Washington,” telling Hailey that DeSantis’ trip was already scheduled when his firm was brought on.

— “Ballard did not recall any government inquiring about DeSantis and said his firm recently interviewed with a ‘large country’ that did not ask about DeSantis in the hiring process (he declined to name the country). But, Ballard conceded, there could be more business opportunities to come when a Republican nominee emerges.”

TIKTOK LOBBYING MIGHT PAY OFF: Lawmakers “are considering changes to address concerns about a bill that would give the Biden administration new powers to ban Chinese-owned TikTok, the chair of the Senate Intelligence Committee who has cosponsored the legislation said on Monday,” per Reuters’ David Shepardson.

— Sen. Mark Warner (D-Va.) told the outlet that lawmakers have “‘a proposal on a series of amendments to make it explicitly clear’ and address criticisms, including that individual Americans could be impacted or that the bill represents a broad expansion of government power. ‘We can take care of those concerns in a fair way,’ Warner said.”

— “‘I will grant TikTok this — they spent $100 million in lobbying and slowed a bit of our momentum,’ Warner said, adding that initially it seemed it would be almost ‘too easy’ to get the bill,” which the White House has thrown its support behind, passed.

FIRST IN PI — NARRATIVE ADDS 4: Narrative Strategies has hired digital comms veteran Erin Bergmeister to lead the firm’s digital marketing division. She was most recently a senior account director at 720 Strategies, and is an NJI Media alum.

— The firm has also hired Garrett Stoecker as a digital marketing associate and Kamryn Bradsher and Ethan Vosper as strategic communications associates. Stoecker most recently served as an associate digital strategist at Pinkston, Bradsher most recently was a communications and external affairs associate at the Service Year Alliance and Vosper was most recently an intern at Narrative.

A message from Air Line Pilots Association, Int'l:

Jobs Report

— Dave Christie is now chief of staff for Sen. Maggie Hassan (D-N.H.). He was previously her legislative director.

— Richard Carbo is joining Cornerstone Government Affairs’ public affairs team. He was most recently a vice president at S-3 Group and is a Gov. John Bel Edwards alum.

— Rachel Bisi Lawlor is now senior counsel for the legal division of the Consumer Financial Protection Bureau. She most recently was senior manager for public policy at Amazon.

— Hooff Cooksey is joining Look Ahead Strategies as senior vice president. He previously was principal at HC Strategies and is an NRSC alum.

— Matt Kent is joining Rep. Becca Balint’s (D-Vt.) office as judiciary counsel. He was most recently a competition policy advocate at Public Citizen.

— Lauren Pulte is now a director at strategic communications and advisory firm Lambert. She most recently was a PR consultant at RCX Sports and is a POLITICO alum.

— Rich Feuer Anderson has promoted Tom Koonce and Jared Sawyer to partner.

— Samantha Davidson Guinn is joining Cornerstone’s Oklahoma office. She’s currently president of the Institute for Responsible Alcohol Policy and was previously deputy attorney general and chief of policy to the Oklahoma attorney general.

— Shelly O’Neill Stoneman will become senior vice president for government affairs at Lockheed Martin. Stoneman was most recently senior vice president for government relations at BAE Systems, and will replace Greg Walters, who will retire this year. Walters took over the role after Christian Marrone resigned in February.

— Nancy Martinez is now director of public policy, trade and biotechnology at the National Corn Growers Association. She was most recently legislative assistant for Sen. Todd Young (R-Ind.).

— Steven Shparber joined Mintz’s energy and sustainability practice with a focus on renewable energy development. He most recently was partner at Clark Hill and previously worked at FERC and PJM Interconnection.

— Miranda Barrett and Ben Bowden are joining Factum Global as associate consultants.

— Timothy Curry is now executive vice president of global affairs at Stryk Global Diplomacy. He was most recently a strategic adviser at Vaultree and is a DHS alum.

— Kevin McKeon, Cayce McCabe, Megan Nashban Kenney, Jenna Kruse, Bryan “Boo” Yuen, Cristina Gonzalez, Issac Walker and Christina Jansen are all founding a new Democratic ad firm, the Adwell Group. McKeon and McCabe were previously at Putnam Partners; they and Nashban Kenney are partners at Adwell.

— Gina Abercrombie-Winstanley is now president of the Middle East Policy Council. She previously was chief diversity, equity and inclusion officer at the State Department and is the former U.S. ambassador to Malta.

— Elizabeth Cherot will be president and CEO of March of Dimes. She previously led its Office of Maternal and Child Health Impact, and is the nonprofit’s first physician leader.

STEP INSIDE THE GOLDEN STATE POLITICAL ARENA: YOU HEARD IT HERE FIRST … Add California Playbook to your daily reading to keep up with the latest political news and policy moves from deep inside the power centers at the heart of the world’s fourth largest economy. Authors Lara Korte and Dustin Gardiner take you inside the state Capitol and governor's mansion in Sacramento, the mayor’s office and City Council and Los Angeles, and the most influential rooms in Silicon Valley and deliver buzzy scoops and behind-the-scenes details that you simply will not get anywhere else. Subscribe today and stay ahead of the game!

New Joint Fundraisers

None.

New PACs

Blessing Oluwadare (Super PAC)
BLACK CONSERVATIVE LEADERS POLITICAL ACTION COMMITTEE (PAC)
Watertown Area Progressive Action Committee (Hybrid PAC)

New Lobbying REGISTRATIONS

Alston & Bird LLP: Washington State Hospital Association
Atolletc LLC: Liberland
Cassidy & Associates, Inc.: Las Vegas Valley Water District
Cassidy & Associates, Inc.: Southern Nevada Water Authority
Ervin Graves Strategy Group, LLC: Geis Companies
Keefe Singiser Partners, Fka Keefe Strategies LLC: National Partnership For Women & Families
Langley Consulting, LLC: City Of Athens, Alabama
Langley Consulting, LLC: Limestone County, Alabama
Mercury Public Affairs, LLC: North American Stainless
Pauley Management Inc.: United States Law Enforcement - Police Hall Of Fame
Raffaniello & Associates: Sibanye Stillwater
Revere Federal Strategies: Nooks
Squire Patton Boggs: Swords To Plowshares: Veterans Rights Organization
Squire Patton Boggs: The Donohoe Companies
Winning Strategies Washington: Autocon Technologies Inc.

New Lobbying Terminations

American Association Of Colleges For Teacher Education: American Association Of Colleges For Teacher Education
Bachner Group: Dark Pulse
Capitol Core Group, Inc.: Richland Communities
Hannegan Landau Poersch & Rosenbaum Advocacy, LLC: Wrap Technologies, Inc.
Ipolicy Solutions: Sema4 (Formerly Known As Mount Sinai Genomics, Inc. (D/B/A Sema4))
Krl International LLC: Mpharma Data Inc
Lawrence James Group Professionals LLC: Rajant Corporation
Mchugh Lemay Assoc., LLC: Clark Street On Behalf Of Kyocera Soraa Laser Diode
Mwr Consulting: Hollister, Inc.
Polsinelli Pc: Medical Group Care, LLC
Polsinelli Pc: Teva Pharmaceuticals USa, Inc.
S-3 Group: American Unity Fund
Strategic Marketing Innovations: Bki Engineering Services Behalf Inland Power & Light Company
Strategic Marketing Innovations: Columbia Power Technologies
The Spectrum Group: Winchester Ammunition Division, Olin Corp
Whitmer & Worrall, LLC: Evoqua Water Technologies

A message from Air Line Pilots Association, Int'l:

Proposed changes to pilot training threaten more than a decade of exemplary air safety. As Congress considers the FAA reauthorization bill, some industry stakeholders are lobbying to weaken pilot training qualifications. If successful, passengers will fly with less experienced pilots and at an increased risk to their safety. Since standards were increased in 2010, the U.S. has seen a 99.8% reduction in airline fatalities. Weakening the current pilot training standards and qualifications that keep our skies safe is a recipe for disaster — one that risks passenger safety for years to come. Learn more here.