Topgolf Callaway Brands to split into two independent companies

” … we have been disappointed in our stock performance for some time.”

Topgolf Callaway Brands Corp. announced Wednesday that its board of directors intends to pursue the separation of its two primary businesses, Topgolf and Callaway, making them two independent companies.

In March 2021, Callaway Golf Co. acquired the remainder of Topgolf Entertainment Group that it didn’t already own, valuing the driving range chain at approximately $2 billion. The joint company was renamed Topgolf Callaway Brands Corp., but starting in March of this year, rumors began to swirl that a breakup could be coming.

In August, Topgolf Callaway reported that its second-quarter revenue was $494 million, while its first six months’ revenue exceeded $917 million. While those numbers represented increases, they came almost exclusively from the creation of new venues because the same-venue sales were down 8 percent. At the time, Topgolf Callaway reported that traffic to existing Topgolf locations slowed.

After that announcement, Topgolf Callaway CEO Chip Brewer said, “We remain convinced Topgolf is a high-quality business with significant future opportunity. At the same time, we have been disappointed in our stock performance for some time, as well as more recent same-venue sales performance.”

Topgolf
The Topgolf venue in Farragut, Tenn. (Brianna Paciorka/Knoxville News-Sentinel)

Topgolf Callaway Brands, which trades on the New York Stock Exchange under the symbol MODG, has seen its value steadily decrease since reaching a high of $36.92 per share in May 2021. On Aug. 30 it finished at a low of $9.94. On Wednesday it closed at $10.76 per share before the announcement was made.

In a release, John Lundgren, chairman of the board of directors of Topgolf Callaway Brands, said, “Today’s announcement is the result of a thorough strategic review conducted by the board of directors and the management team. The creation of two independent companies, each with a distinct focus and proven business model, is intended to drive continued momentum in both businesses and deliver value to all our shareholders.”

Callaway will consist of the golf equipment part of the business, along with Toptracer and lifestyle brands TravisMathew, OGIO and Jack Wolfskin.

Callaway Apex Ti Fusion, Apex Ai200 irons
Callaway’s Apex Ti Fusion and Apex Ai200 irons (David Dusek/Golfweek)

Topgolf will concentrate solely on its entertainment business, which includes more than 100 driving range-entertainment centers worldwide. Topgolf plans to reduce its new venue development for 2025 to a number in the mid-single digits, the release stated.

Brewer said on Wednesday, “We believe that separating Topgolf will best position both companies for success. Topgolf and Callaway have different operating models and capital needs, and this split allows each to maximize their potential.”

The company announced that it expects to spin off of the Topgolf business to Topgolf Callaway Brands’ shareholders in a transaction that is intended to be tax-free to both the company and its shareholders for U.S. federal income tax purposes. While the company expects that a spin-off of Topgolf into a stand-alone public company is the most likely separation path, the company will continue to evaluate other options for separation to maximize shareholder value.

The separation of the brands is expected to be completed in the second half of 2025.

Make golf easier? That’s the goal of Topgolf’s The Sure Thing club

This special golf club that can only be found at Topgolf locations.

Golf may never be easy for most of us, but Topgolf has something new that might make beginners take to the game better.

The official language from Topgolf is “Make Golf Less Hard” but however you want to phrase it, this might be the thing that works for you or someone you know.

It’s called The Sure Thing and it’s a special golf club that can only be found at Topgolf locations.

Topgolf says the club is “designed in collaboration with Callaway engineers” and it should help newbies hit the ball more solid and get it where we all want it to go: airborne.

The club face is huge with a 20-degree loft and the shaft is shorter that traditional drivers.

Topgolf Sure Thing club
The Topgolf Sure Thing golf club.

“At Topgolf, we exist to bring joy through more ways to play the game of golf, and The Sure Thing is one way we’re delivering on that purpose,” Topgolf CEO Artie Starrs said in a media release. “We want everyone to experience the thrill of hitting the ball solidly and into the air, and designing a club with new players in mind is our way of helping to make that happen.

“I remember the first time I hit a solid shot into the air as a kid and we want to enable that thrill for everyone.”

Topgolf is offering players one free order of boneless chicken wings per bay on Monday, Aug. 5, for trying out The Sure Thing.

Topgolf competitor led by Bryson DeChambeau, Beau Welling announces expansion to second Texas location

The Horizon Golf Course facility will be a two-story, 12,000-square-foot venue.

EL PASO, Texas — UnderPar Life, which bills itself as a competitor to Topgolf, is coming to this Texas border city.

The company, backed by current LIV Golf star Bryson DeChambeau and golf course architect Beau Welling, is set to make its second location at Horizon Golf Course in El Paso as part of a plan to expand to 30 locations nationwide, according to D Magazine.

The Horizon Golf Course facility will be a two-story, 12,000-square-foot venue. It will feature a 300-yard driving range, a golf instruction academy, a “tour-level” short game and practice area and a bar and restaurant, according to the article,

“It’s a perfect location for us,” the company co-founder David Deering told D Magazine. “Our thesis is proving out to be correct. The municipalities are loving our idea. They are willing to give us these favorable 99-year leases in exchange for us building on their golf course.

More: How did golf course architect Beau Welling become one of the most powerful people in the sport of curling?

UnderPar Life rendering of the hitting bays at Horizon Golf Course. (Contributed photo)

“One of the challenges of a startup is, ‘Can they do things over and over again?’ Well, I’m starting to feel this is a repeatable process at scale where we don’t have to drop $20 million on a piece of land.”

A groundbreaking date hasn’t been set construction is slated to take between 18 and 24 months.

“Growing the game of golf is an essential component of Horizon Golf Club’s mission,” Luis Delgadillo, head pro at Horizon Golf Club, told D Magazine. “Partnering with UnderPar Life provides us an opportunity to expand our free youth programs and expose our top players to world-class practice facilities.“tour-level” short game and practice area and bars and restaurants, according to D Magazine.

El Paso’s Topgolf opened on Feb. 2, 2018, at 365 Vin Rambla Drive. Billed as “a game for everyone,” Topgolf estimates that 51% of its patrons are non-golfers. UnderPar Life is aiming at the same market.

Bret Bloomquist can be reached at bbloomquist@elpasotimes.com; @Bretbloomquist on X.

Eagle’s Edge at ChampionsGate ramps up with Toptracer tech near Orlando

The new Toptracer Range combines a cool pub scene with plenty of golf tech at the Omni Orlando Resort at ChampionsGate.

CHAMPIONSGATE, Fla. – Want to beat a bucket of range balls near the tourist corridor in Central Florida? If you’re looking to throw in dinner and a cocktail and do it all under the lights, check out the new Eagle’s Edge range with Toptracer Range technology at Omni Orlando Resort at ChampionsGate.

Hardly a week goes by without a golf club – typically multiple clubs – announcing the installation of a Toptracer Range. The popular tech tracks a golf ball’s flight with a system of cameras and sensors then projects its flight onto a screen. If you’re reading this golf story, you’ve surely seen the tech at work on TV broadcasts of the PGA Tour.

There are other similar systems, with Trackman’s radar-based system being a prime example. All such systems are designed to elevate the range experience from merely beating a bucket of balls, giving players data about their practice shots or allowing them to virtually play famous courses as a video game come to life.

Since being acquired by Topgolf in 2016 and rebranded from its original name of Protracer, Toptracer’s tech has taken off and been installed at more than a thousand facilities. The company says on its website that there are now more than 24,000 Toptracer hitting bays.

The new Toptracer Range at Eagle’s Edge at Omni Orlando Resort at ChampionsGate is just a few hundred yards out the back door of the massive resort hotel. The facility is open to public bookings. (Courtesy of Omni)

Many private clubs have installed a few bays with food and beverage options for members, especially in colder climates where courses might be closed seasonally. Plenty of public-access ranges also have installed Toptracer tech, where players can hit balls and monitor their results on a monitor. There already were several facilities in Central Florida to have installed the tech, such as Tee It Up Golf Driving Range in Oviedo, some 20-30 minutes of driving northeast of downtown Orlando on the opposite side of town from the region’s theme parks.

The new public-access Eagle’s Edge at ChampionsGate ramps it up several notches, combining a high-end pub scene and Toptracer tech on the southwest side of Orlando not far from Disney World.

Eagle’s Edge offers 30 ground-level hitting bays playing out to an un-netted range, which on the far end serves as the practice facility for ChampionsGate’s two full-size golf courses, the National and International. The new Toptracer Range was constructed where coach David Leadbetter’s golf academy formerly resided.

The 6,000-square-foot Eagle’s Edge includes dining and a central bar just a few hundred yards out the back door of the massive Omni hotel, with food and drinks delivered to each bay. Raised and lit targets large and small were built on the half of the range closest to Eagle’s Edge, giving players something to aim for night or day. Shots are tracked on monitors adjacent to the high-end hitting mats, and balls are supplied via a machine with the swipe of a club in front of a sensor, the same as at a Topgolf facility.

The total Eagle’s Edge experience is much more like a Topgolf, which helped define the industry term of “eatertainment,” than it is a regular range. Hang out on a couch watching TV with a craft cocktail and plate of nachos, or pound balls with purpose; the choice is yours.

Food and drink are an integral part of Eagle’s Edge at Omni Orlando Resort at ChampionsGate. (Courtesy of Omni)

And like the targets at a giant Topgolf facility, those at Eagle’s Edge light up when a ball strikes home and the bayside screen registers the hit. Many players will spend most of their time whaling at a driver to see how far they might be able to hit a ball, but on opening night it was just as fun for the more serious golfers in attendance to try to make the lights dance with wedge shots bouncing off the smaller targets closer to the bays.

“With Eagle’s Edge, we are transforming the way our guests partake in the game and event gatherings through an all-encompassing venue that brings state-of-the-art technology, topline service and unmatched food and beverage offerings,” Scott Tripoli, general manager of Omni Orlando at ChampionsGate, said in a media release announcing the opening of the facility.

Each of the 30 hitting bays can accommodate one to six players. Walk-ups are accepted, but it’s best to reserve a bay via opentable.com. The price of a bay varies on demand, but expect to pay $40-$58 per hour depending on date and time as judged by a recent glance at the booking site – that price is the same per bay regardless of one player or six. The facility also accommodates large groups. Players can use their own clubs or swing with clubs provided at each hitting bay.

Check out a selection of images of the new facility and its Toptracer tech below.

Report claims Callaway up for sale; company says it’s unaware of discussions

Topgolf Callaway Brands considers selling equipment-maker Callaway at a value of nearly $3 billion.

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Editor’s note: This story has been updated with a comment from Topgolf Callaway Brands Corp.

Topgolf Callaway Brands Corp. is considering selling its California-based Callaway Golf business, according to a report from South Korea’s Chosun Daily news outlet that was picked up by multiple sites including Bloomberg.

According to the reports, the golf equipment maker would be valued at nearly $3 billion. Topgolf Callaway Brands Corp.’s major shareholders – BlackRock Advisors LLC, Providence Equity Partners LLC and Thomas Dundon – have selected a lead manager to explore possible deals.

Topgolf Callaway Brands Corp., however, said later Wednesday that it was unaware of any such discussions.

“While it is our long-standing practice not to respond to market rumors and speculation, in light of today’s unusual market activity, coupled with a recent media report originating in Korea regarding discussions of a potential sale of the Company or its golf equipment business, we confirm that we are not aware of any such discussions,” the company wrote in an emailed comment. “We do not intend to comment further on this topic, and we assume no obligation to make any further announcement or disclosure should circumstances change.”

The New York Stock Exchange share price for Topgolf Callaway Brands Corp. surged more than 12 percent to more than $16 in the wake of the reports, as of noon Wednesday. That put the company’s market cap at $2.98 billion. That price slid to beneath $16 a share in afternoon trading. Topgolf Callaway Brands Corp.’s stock price had dropped from a 12-month high of $22.87 on April 21, 2023, to a low of $10.05 on November 10. In 2024, it has traded in the $13-$14 range

Reports indicate that the major shareholders want to spin off Topgolf, the entertainment brand with technology-boosted driving ranges and extensive food-and-beverage operations. Callaway Golf Co. closed a deal in March of 2021 to acquire the remainder of Topgolf Entertainment Group it didn’t already own, valuing the driving range chain at about $2 billion. The merger resulted in the name Topgolf Callaway Brands Corp.

Chip Brewer, Topgolf Callaway’s CEO, said during its Q4 2023 earnings conference call on February 13, “Topgolf’s track record for selecting and opening venues is extraordinary. They virtually all do well, and average opening results have exceeded our targets. …

“In addition, our venues are increasingly profitable over time with, what we believe, is a clear path to further upside. I’ll even add we have now shown we can do this in the face of same venue sales volatility. In short, the venues are achieving the return targets we communicated and are long, durable and appreciating assets.”

During the same call, Brewer predicted that Topgolf would have more than 30 million visitors to its facilities in 2024 before giving a strong report about Callaway’s club sales.

“Our U.S. dollar market share placed us as the number one club brand and the number two golf ball brand,” Brewer said. “In clubs alone, we were the number one in total clubs, drivers, fairway woods, hybrids and irons. ”

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Who has the best swing: Shaq, Martha Stewart, T-Pain, Dan Marino or Olivia Culpo?

Ah, Las Vegas. Where the phrase “Martha Stewart, T-Pain and Shaq were in a golf competition” doesn’t seem particularly outrageous.

Ah, Las Vegas. Where the phrase “Martha Stewart, T-Pain and Shaq were in a golf competition” doesn’t seem particularly outrageous.

In fact, the trio was joined by NFL Hall of Famer Dan Marino and former Miss Universe Olivia Culpo in an event at the Las Vegas Topgolf in advance of Sunday’s Super Bowl contest between the San Francisco 49ers and the Kansas City Chiefs.

The golf competition was part of the Michelob Ultra Country Club party, which was followed by a concert performance later in the night.

Here’s a video of the swings and some pictures of the chaos that ensued:

Topgolf posts mysterious job the day after Tiger Woods splits with Nike

Woods appears to be the only person who can meet the qualifications of the oddly specific job posting.

Tiger Woods announced his split with Nike on Monday after a 27-year partnership. This has the golf world speculating and asking who he will partner with next.

“Throughout the course of our partnership, we have witnessed along with the rest of the world, how Tiger not only redefined the sport of golf, but broke barriers for all of sport,” said Nike. “We watched him set records, challenge conventional thinking and inspire generations of people around the globe. We are grateful to have been a part of it. We wish him the best in the future.”

Many guessed this partnership was on its way out, but in the midst of the news, Topgolf added another layer, The golf entertainment brand recently posted a job role and description on LinkedIn that seems oddly specific to one person.

Topgolf job description
Topgolf job description. (LinkedIn)

Although it’s an official posting, the position may just be for fun seeing as Woods is the only person who can justify the qualifications. Not to mention Topgolf is in business with Callaway and Woods is in business with Popstroke and TaylorMade. That said, the popular entertainment venue doesn’t appear to be letting conflicting interests get in the way of a good time.

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After halting future projects, BigShots Golf purchased by Topgolf Callaway for $29 million

After unveiling ambitious plans, a BigShots project in Naples, Florida, was abandoned this year.

Originally crafted as a top competitor, the BigShots Golf chain has been sold to Topgolf Callaway as part of a deal that brings two of the biggest “golf experience” brands together.

According to a release, Topgolf Callaway is paying $29 million for four of the company’s six domestic locations and the rights to any future development.

BigShots had been under the purview of Invited Inc., which was formerly known as ClubCorp. That organization is based in Dallas.

“We are essentially purchasing an additional off-course venue and the royalty stream from three franchise venues, including the option to convert those to Toptracer technology in the near future,” said Topgolf Callaway Brands President and CEO Chip Brewer, “As well as further building out and strengthening our future venue pipeline and growing our partnership with an important golf equipment and apparel partner, Invited – all for the price of approximately one Topgolf venue.”

Although BigShots Golf operated in a similar way to the popular Topgolf ranges, company officials told those at new locations that it wasn’t trying to compete with Topgolf; rather the company was looking to open locations in areas that have been “underserved in the entertainment aspect,” according to T.J. Schier, who was the acting chief operating officer for BigShots.

“The world has changed significantly from the time we initially evaluated the opportunity,” Randall Cousins said in June, when he was acting as the company’s senior VP. “Today, we face increased costs in every major category, including financing, construction and operations. In the past several months, we’ve explored many options to mitigate these challenges and invested several million dollars of sunk cost into development and materials. Unfortunately, we did not find a sustainable solution.”

Although this week’s release said four locations were part of the purchase, BigShots has six open locations in the United States: Bryan and Fort Worth, Texas; Akron, Ohio; Springfield, Missouri.; St. George, Utah; and Vero Beach, Florida.

An email to a BigShots spokesperson, inquiring on which properties were not part of the deal, was answered with this: “The acquisition encompasses only what was in our press release.”

Other locations were also planned in Panama City, Florida, and Grand Prairie, Texas, as well as Naples. A company official said BigShots was on track to open five more locations in the United States by 2024.

Tim O’Reilly, CEO of O’Reilly Hospitably Management, the Springfield company that owns that area’s BigShots, told the Springfield News-Leader the biggest change will be the addition of Toptracer technology. Patented by Topgolf Callaway Brands, Toptracer is software that tracks golf shots and displays a ball’s statistics, such as speed and distance, in real-time. O’Reilly did not indicate when this software will be available in Springfield.

BigShots will also have the opportunity to adopt the Topgolf menu, O’Reilly said. The two menus have a significant amount of overlap, though, both offering cocktails, wine and beer, traditional appetizers, entrees and desserts.

Despite the recent acquisition, O’Reilly said the hospitality management company has “absolutely no plans” to change the BigShots name or interior look.

As part of the deal, the two sides enter into a preferred vendor agreement in which Topgolf Callaway Brands’ products and merchandise will be featured at Invited’s more than 140 golf and country clubs.

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Jon Rahm extends his contract with Callaway Golf

The extension of Rahm’s contract includes an equity position in Topgolf Callaway Brands.

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On the eve of the 151st Open Championship at Royal Liverpool, Callaway announced that it has reached an agreement with Jon Rahm that will extend the Spaniard’s relationship with the brand and ensure that the golfer who is currently ranked No. 3 in the Official World Golf Ranking will be using Callaway gear for years to come.

Rahm, 28, won the 2021 U.S. Open at Torrey Pines and the 2023 Masters using Callaway equipment.

While the complete financial details of the endorsement deal were not disclosed, the extension of Rahm’s contract includes an equity position for Rahm in Topgolf Callaway Brands.

“We’re so proud to have Jon on our staff, and we couldn’t be more excited about this extension of our long-term partnership. Jon is an amazing talent, and he’s driven to be one of the very best to ever play the game,” said Topgolf Callaway Brands president and CEO Chip Brewer. “Equally important, he is a man of strong integrity and a brand ambassador who shares our passion for making a positive impact on our global sport. It’s a pleasure to work with him, and we look forward to focusing our considerable resources on his continued success.”

This season, Rahm has won The American Express, The Genesis Invitational, the Sentry Tournament of Champions and the Masters to earn more than $15 million in prize money.

Jon Rahm's Callaway equipment
Jon Rahm’s Callaway equipment. (Photo: David Dusek/Golfweek)

Rahm’s contract extension will require him to use Callaway and Odyssey equipment, wear Callaway headwear, TravisMathew apparel and footwear, and help to promote Topgolf. Below is a list of the clubs he has been using in 2023:

DRIVER: Callaway Paradym Triple Diamond (10.5 degrees), with Aldila Tour Green 75 TX shaft

[afflinkbutton text=”Shop Jon Rahm’s driver” link=”https://pga-tour-superstore.pxf.io/zaWJkG”]

FAIRWAY WOOD: Callaway Paradym Triple Diamond (16, 18 degrees), with Graphite Design Tour AD DI 8X shafts

[afflinkbutton text=”Shop Jon Rahm’s fairway wood” link=”https://pga-tour-superstore.pxf.io/NKgjyq”]

IRONS: Callaway Apex TCB (4-PW), with Project X 6.5 shafts

WEDGES: Callaway JAWS Raw (52, 56, 60 degrees), with Project X 6.5 shafts

[afflinkbutton text=”Shop Jon Rahm’s wedges” link=”https://globalgolf.pxf.io/x9BQ6v”]

PUTTER: Odyssey White Hot OG Rossie S

[afflinkbutton text=”Shop Jon Rahm’s putter” link=”https://globalgolf.pxf.io/P01rQj”]

BALL: Callaway Chrome Soft X

[afflinkbutton text=”Shop Jon Rahm’s golf ball” link=”https://globalgolf.pxf.io/rnVON3″]

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How Al Horford, Boston Celtics used Topgolf to ease tensions down 3-0 in the NBA playoffs

How did the Celtics ease the tension in the room after falling behind? Swinging a few clubs at the Topgolf in Miami.

The Boston Celtics are on the precipice of accomplishing something that has never happened in an NBA playoff series.

No team has recovered after going down three games to none to win a seven-game playoff series. History can be made Monday night at TD Garden in Boston.

With their thrilling buzzer-beater win in Game 6 against the Miami Heat, the Celtics became only the fourth NBA team to erase a 3-0 deficit in a best-of-seven series and force a deciding game.

But how did the Celtics ease the tension in the room after falling behind? Swinging a few clubs at the Topgolf in Miami might have made the difference.

According to multiple reports, including an article from The Athletic’s Jared Weiss, the team decided to skip a film session after a Game 3 loss and head off to swing irons at the local driving range.

“We completely skipped film,” Grant Williams said. “We kept basketball away and we just focused on each other and getting that camaraderie and team back. We disconnected from the actual pressures and we were able to just enjoy one another. We’ve done movies before, we’ve done dinners. But that was our first time doing something active like that. Then we hit the film the next day.”

The move seemed to work wonders as the Celtics responded with an emphatic 116-99 in Game 4 of the series and then won on their home court in Game 5 before stealing a late victory in Game 6 to push the series to the limit.

The Heat still have a chance to win the series ― Game 7 is Monday (8:30 p.m. ET, TNT) and the winner faces Denver in the NBA Finals ― but they will have to win in Boston against a team sensing a historic comeback.

“We can do it. I know that we will do it,” Butler said. “We’ve got to go on the road and win in a very, very, very tough environment. But we are capable of it. So let’s get busy.”

No team has returned from a 3-0 deficit to win an NBA playoff series in 150 tries and just three previous teams have a forced a Game 7 after losing the first three games of a series.

Boston can become the first to do it. The Celtics have momentum, experience, confidence and home-court advantage to pull it off.

For all their faults, they know how to win with their season on the line. “At their hardest times they stick by each other, and they’ve done that for long time, so credit to them,” Celtics coach Joe Mazzulla said.

Boston relied on its two All-NBA players to force the win-or-go-home scenario. Jayson Tatum had 31, 12 rebounds, five assists and two blocks and Jaylen Brown had 26 points, 10 rebounds and three steals. Boston’s Marcus Smart added 21 points.

Down 3-0 a week ago, the Celtics avoided elimination for the fifth consecutive game since trailing Philadelphia 3-2 in the conference semifinals.

But now with a historic comeback in their sights, the Celtics can thank the relaxation that came from some time on the range. Horford, admittedly, struggled to make good contact during the session, but that wasn’t the point.

“For me at the end of the day, I guess what I can tell you is that our connection with this group goes beyond the court. It’s more on a human level, right?” Horford told The Athletic. “Like friendships, bonds that we’ve built here. Over basketball, I want to make sure that everybody is good and I think sometimes we get so caught up in everything that goes on in our business, you know, it’s expected, it’s our jobs, right? But at the same time, you have to have that perspective.”