Tag: Golf Business

Blockbuster deal: Callaway announces merger with Topgolf

In an all-stock deal, Callaway is merging with Topgolf in an attempt to grow its business and become more attractive to new golfers.

Callaway Golf is one of the biggest and most well-respected golf equipment makers in the world. Topgolf has established itself as a brand that successfully combines technology, entertainment and sports, attracting golfers and non-golfers alike to its 58 locations across America.

On Tuesday evening, it was announced that the two companies are merging.

“Together, Callaway and Topgolf create an unrivaled golf and entertainment business,” said Chip Brewer, president and CEO of Callaway, in a release. “This combination unites proven leaders with a shared passion for delivering exceptional golf experiences for all – from elite touring professionals to new and aspiring entrants to the game.”

Brewer will run the combined company after the completion of the merger. Dolf Berle, Topgolf’s current CEO, will continue to lead the Topgolf business through the transitional period, then step down and leave the company.

Topgolf will join Ogio, Travis Mathew and Jack Wolfskin under the Callaway brand.

Topgolf
Topgolf

Callaway made its first investment in Topgolf in 2006 and already owned 14 percent of the company. The transaction announced on Tuesday is an all-stock deal. Callaway will issue approximately 90 million shares of its common stock to non-Callaway shareholders of Topgolf based upon an implied equity value of Topgolf of $1.986 billion.

Many people’s first exposure to golf has been at a Topgolf venue, attracted by the nightclub-like atmosphere, food and drinks, high-tech games and non-competitive environment. During a conference call on Tuesday evening, Berle said all Topgolf venues in the United States had re-opened by early September. Recent operating sales are back to 80-85 percent of 2019 same-location sales. He added that 33 new venues are in the planning stages and sees approximately 200 possible locations for Topgolf venues in the United States.

Topgolf not only owns 58 locations in the United States, but it also owns Toptracer. This technology is used during television broadcasts to allow viewers to follow balls as they fly through the air. That technology is also being rolled out at driving ranges in the form of Toptracer Range, allowing golfers to see their shots’ ball flight as they practice on screens, smartphones or tablets.

Toptracer Range
Toptracer video screen at Pebble Beach Golf Links during the 2019 U.S. Open

Brewer said that Topgolf is ideally suited to operate within the challenges COVID-19 pandemic during the conference call. Hitting bays are spaced far apart, usually with physical barriers between groups.

Topgolf was especially attractive to Callaway because, according to Topgolf, there were 23 million visits to Topgolf venues in 2019. Fifty-one percent of the people who went to a Topgolf facility last year identified themselves as a non-golfer, but 75 percent of those people said that after visiting Topgolf, they were interested in playing golf on a course. If Callaway can develop a relationship with people as they are discovering the game and learning to love it, it has a better chance of turning those people into Callaway, Odyssey, Ogio and Travis Mathew loyalists.

The merger is expected to be finalized in early 2021.

[lawrence-related id=778052651]

The 2021 PGA Merchandise Show will be all virtual

Due to the continued COVID-19 pandemic, the PGA of America and trade show organizers have decided that a virtual show is safer.

In an announcement that should come as a surprise to almost no one, PGA Golf Exhibitions and the PGA of America announced on Wednesday that the 2021 PGA Merchandise Show will be an all-virtual event.

The three-day event held annually at the Orange County Convention Center in Orlando, Florida, typically attracts more than 40,000 PGA of America professionals, manufacturers, media members and golf industry insiders. With the COVID-19 pandemic continuing throughout the United States and the rest of the world, the safety of everyone involved took precedence.

“These are extraordinary times that have required all of us as an industry to rapidly evolve and innovate the way we do things,” said Peter Broome, the senior vice president of brand management and industry relations for Acushnet, the parent company of Titleist and FootJoy. “The decision by the PGA of America and PGA Golf Exhibitions to shift to a virtual show in 2021 is the right one, made in the best interest, health and safety of everyone involved.”

Suzy Whaley, the president of the PGA of America, said, “Working in partnership with the PGA Show team, we are pleased to continue the longstanding tradition of connecting PGA professionals and the global golf community with a new virtual PGA Merchandise Show experience and marketplace in 2021.”

Over the past several weeks, Golfweek has spoken with several major brands that indicated companies either planned to skip the 2021 PGA Merchandise Show entirely if it were held in person or send a handful of representatives to Orlando. The annual Demo Day at Orange County National Golf Club on the day before the trade show begins seemed implausible to every brand with which Golfweek spoke.

The three-day show is scheduled to begin on Jan. 26 and will now involve online appointments, seminars and presentations.

[lawrence-related id=778022154]

Seamus Golf temporarily closes to make masks for first responders

Instead of producing headcovers and hand-forged metal accessories, the Oregon company is working on masks for nurses and doctors.

Golf lovers who are can’t go to the course are taking to social media and sharing all sorts of trick shots, workouts and practice sessions. However, Seamus Golf, a small brand based in Beaverton, Oregon, that has grown a cult following thanks to its unique headcovers, hand-forged ball markers and accessories posted a very different message.

On Monday evening, the company announced on its website that it would close temporarily to help produce masks for doctors, nurses and first responders who are in need of supplies in the wake of the coronavirus outbreak.

View this post on Instagram

30% OFF SITE WIDE // Sometime today, our Co-Founder Megan will be provided with more information on the actual design tech pack and materials to be used. We are proud of our team. They took the time to design a mask and figured out how many we can make. 5,000 in three days with our 10 sewers sewing if it were the design above. Our team is well accustomed to working on projects we’ve never worked on before. Some of our team learned to sew at SEAMUS, thus it is possible that we could to increase our workforce if that need presented itself. In the meantime, we will continue to offer a 30% site wide to all customers until we are making masks. Having taken serious steps to ensure Social Distancing, we now truly believe we are in a position to help. #farandsure

A post shared by SEAMUS GOLF (@seamusgolf) on

 

“Prototyping began last week and ended with our first production run on Friday,” a message on the company’s homepage read. “We are using our materials and constructing them in a way that each of these individuals are requesting to use as a last resort. They have confirmed that what we are making is better than what they are resorting to use.”

The masks are not made from N95 material though the company said it is seeking it and could use customers’ help on that front. Still, with masks running critically low in many areas, the Seamus masks are better than what many healthcare workers are being forced to use.

Seamus used the past week to set up its office for “social distanced production.” The company believes it can continue to make products and keep its employees through a tough time such as this. The Seamus store has been temporarily closed to allow the full team to focus and assess the situation with masks. A second production run began Monday night.

Seamus also said it would give away the masks for free to frontline workers who contact the company at masks@seamusgolf.com.

Scott Piercy loses sponsors after controversial Instagram posts

Acushnet’s Titleist and FootJoy, as well as apparel maker J. Lindberg, have dropped the PGA Tour veteran.

PGA Tour veteran Scott Piercy, 41, lost two major sponsors on Thursday as a result of controversial posts he shared on Instagram. One was a homophobic meme of former Democratic presidential candidate Pete Buttigieg and the other referenced QAnon, an ultra-conservative conspiracy theory about a secret plot against President Donald Trump.

As first reported by golfdigest.com, Titleist and FootJoy, both owned by Acushnet, ended their sponsorship with Piercy on Tuesday. Apparel maker J. Lindberg also ended its relationship with the Las Vegas native.

Piercy’s name and image have been removed from both companies’ websites.

Thursday at the Arnold Palmer Invitational, Piercy shot 1-under 71.

“We were made aware of Scott’s post and are disappointed in the lack of judgement used,” the PGA Tour said in a statement.

Scott Piercy's Titleist irons
Scott Piercy’s Titleist irons at Bay Hill. (David Dusek/Golfweek)

In a statement, a J. Lindberg representative wrote, “When we choose our ambassadors, we choose individuals we know will represent us well on and off the golf course. The claims from Scott Piercy were unacceptable and far from our views and beliefs. We have since terminated our contract with Mr. Piercy. We, J. Lindberg, as a company do not stand by the statements made by Piercy and we want to make sure our customers, employees and other ambassadors know we support all communities and have no room for hate or discrimination in our company.”

Piercy, who turned pro in 2001 and has won four PGA Tour events, posted an apology on his Instagram story that stated, “Whenever I post my intent is NEVER to offend. I want to apologize if any of my recents story posts have been offensive. I will do better!”

[lawrence-related id=778030053,778029996,778030033]

 

Acushnet, parent of Titleist and FootJoy, launches Union Green

Trying to attract a different type of player, Acushnet launches Union Green, a new brand aimed at people at casual golf lovers.

Titleist is one of the most iconic brands in golf and it’s sister brand in the Acushnet Company, FootJoy, is one of the most successful footwear and apparel brands in the sport. When golfers think about Titleist and FootJoy, things like tradition, history and high-quality products for serious golfers like Adam Scott and Justin Thomas come to mind. While it’s true that Titleist now offers a yellow Pro V1 and makes more game-improvement clubs than ever before, and FootJoy is making plenty of modern, sporty shoes to go alongside its classic-looking footwear, there has always been a level of aspiration to the brands.

That’s what makes Acushnet’s launch of Union Green, a new sub-brand, so interesting. Union Green is going in a totally different direction. The brand’s tone was established in the company’s first social media post, quietly published on Tuesday.

The idea of inclusion is everywhere on the company’s new website (uniongreen.com) and Instagram account, with hashtags like #UnitedByGolf and #JoinTheUnion everywhere.

No one in the images appears to be over 30 and if you study the image on the site’s homepage carefully, it’s hard to believe that this company has related to Titleist and FootJoy.

Union Green
The main images on Union Green’s website sets the tone. (Union Green)

Awaiting on the tee of what looks like a windswept links, bathed in evening sunlight, a long-haired man wearing shorts has a hat on backwards while another is wearing tan shorts, white tube socks and brown shoes with red laces. They embody a statement found just below the image:

We’re not the golfers you see on tour. We’re different. The ones playing local, taking mulligans, over celebrating and always going for it. Club Championships, rule books, 18 holes every time – that’s not our game. We’re here for golf that fits our life. For fellowship. For the love of the fairway. We’re united by the game.

The two golf balls being sold on the site are the Teebird ($19.99/dozen) and Pinpoint ($27.99/dozen). Both are manufactured in Titleist’s Ball Plant 2 in Massachusetts. The Teebird is touted to be long and fast, while the Pinpoint is designed to give accuracy and control. Details are few at this point, but the target market for Union Green balls may not be concerned with details like compression and cover material.

Union Green golf balls
Union Green Teebird and Pindrop golf balls (Union Green)

In addition to golf balls, Union Green is selling t-shirts, hats and mugs. More things will come in the future, but right now it is interesting to see how Acushnet is trying to tap into a growing number of people who enjoy golf as a vehicle for fun and friendship rather than competition. It is an attempt to grow the business with a new audience, while not diluting the Titleist and Footjoy brands or alienating loyalists who like that gear.

PXG signs Chez Reavie, Jason Kokrak, Joel Dahmen and Haley Moore

Parsons Xtreme Golf has added three more players to its PGA Tour staff, along with an LPGA rookie.

While the PGA Tour operates on a rolling calendar, endorsement contracts still tend to be based on a traditional calendar system, with deals ending on Dec. 31 and starting on Jan. 1.

Shortly after the clock struck 12 and 2020 began on Wednesday, PXG announced that it has added Chez Reavie, Jason Kokrak and Joel Dahmen to the company’s PGA Tour staff, as well as LPGA rookie Haley Moore.

The terms of each endorsement deal were not disclosed.

Reavie is coming off his best year as a professional. He won the 2019 Travelers Championship, earning him a spot in this week’s Sentry Tournament of Champions in Hawaii. According to PXG, he will be using the following clubs:

DRIVER: PXG 0811 Prototype
FAIRWAY WOODS: PXG 0341 X GEN2 (3, 5)
IRONS: PXG 0311 ST (4-PW)
WEDGES: PXG Milled Sugar Daddy (50, 54 and 60 degrees)
PUTTER: PXG GEN2 Mini Gunboat

 

Jason Dufner signs equipment deal with Cobra Golf

The winner of the 2013 PGA Championship, Jason Dufner, will be using Cobra clubs and bags starting this week at the Mayakoba Championship.

Jason Dufner, the winner of the 2013 PGA Championship at Oak Hill Country Club in Rochester, N.Y., has signed an endorsement contract with Cobra Golf. The financial terms of the agreement were not disclosed, but Dufner will be using Cobra clubs and start using a Cobra bag this week at the Mayakoba Championship.

While the deal was officially announced on Tuesday, Dufner, 42, recently attended a Cobra event at Drive Shack in West Palm Beach, Fla., with Greg Norman, instructor Claude Harmon and Rickie Fowler.

At that event, the former Auburn University standout explained that his friendship with Fowler played a large role in developing his relationship with Cobra. Dufner said that he and Fowler are close friends, that they have played a lot of practice rounds together and he frequently stays in Fowler’s guest house when he is in South Florida.

During one of those practice rounds, he tried Fowler’s Cobra driver and liked it so much he put one into his bag. After that, he started tinkering with muscleback blades and cavity-back irons made by the Carlsbad, Calif.-based company.

“I sat down and thought that I was going to play (Cobra’s) stuff next year,” he said. “I talked with them and tried to see what they were going to do with marketing and branding and if they were going to add any new players. It just kind of worked out that they were ready to take a step with another new player.”

Among the clubs that are in Dufner’s bag this week are a Cobra King F9 Speedback driver (10.5 degrees) with an LAGP Olyss 6X shaft, a King Driving iron (4), and King Forged CB irons (5-PW) and King V Grind wedges (52, 56, 62 degrees), all with True Temper Dynamic Gold Tour Issue AMT S400 shafts.

“Another great thing about Cobra, and this isn’t a knock on any other brand, is that they don’t have a huge staff,” Dufner said. On the PGA Tour, Fowler and Bryson DeChambeau are the only other full-time Tour players. “So they have more time to spend with you, more time to be around you and really dig into what your equipment needs might be.”

[lawrence-related id=778011122]