After a brief sabbatical to welcome another future golfing buddy into the world, I’m back to deliver the goods. Or what passes for “the goods” in my sleep-deprived, dirty-diaper-disposing state. Nonetheless, I’ve got a few tidbits from the business side of golf from the past month or so to get your through your morning latté.
So kick back and read some random business dealings from the golf world.
The Economy Claims More Victims
Just like other golf equipment manufactures, even having the #1 ball in golf can’t keep Titleist from having to lay off 169 workers at the ball plants and custom shop. This is on top of some earlier layoffs and restructuring that occurred in February.
No layoffs but the first quarter wasn’t too kind to Callaway Golf who reported a 26% decline in sales compared to the first quarter in 2008. Reading the quote by George Fellows, President and Chief Executive Officer in the Business Outlook section doesn’t paint a rosy picture for the future either. At least they had enough cash on hand to re-sign Phil.
Minimum Pricing
Interesting article about minimum pricing which could affect those equipment companies who require golf shops to sell their product at a certain minimum price point and don’t allow discounting. Getting rid of minimum pricing will certainly help lower costs for the consumer at the expense of profit margins.
The Prodigy
The Next Big Thing apparently is set to sign up with the folks at IMG and to play Callaway equipment. Several other endorsement deals are also in the works. I think this brings the number of pro golfers who are represented by IMG to be about 99.9%, or at least it seems that way. Here’s hoping the kid can just focus on playing golf and not have to worry about the expectations or sponsor obligations.
Off the Rack
Jerry Kelly won the Zurich Classic a couple of weeks ago with a putter he bought off the rack at a Madison, WI golf shop. You would think that he would have a garage full of putters but apparently not. Further proof you don’t have to dump a done of coin on a putter, although it’s still fun to do so. Kudos also to the equipment manufacturers who while still putting out higher-end milled putters also have putter lines in the under $100 category.
Putter Man
Speaking of those high-end putters, there is not doubt that Scotty Cameron knows a thing or two about crafting some really nice putters. Love him or not, there is no denying he is the Big Man on Campus when it comes to making putters. Are there others who could knock Scotty off the top of the mountain? I wouldn’t bet against him but there are a few who can certainly give him a run for his money. And if you like putters (who doesn’t!), having variety and choices is a great, great thing.
Final Thoughts
I’ve made it through another winter and I’m optimistic thus far in my practice sessions to hopefully see some lower scores and more enjoyable golf this year. Toss in a few new clubs to test and review and it’s shaping up to be a good golfing year.
Speaking of equipment, now seems to a great time to buy with price reductions galore, buy a driver and get free shoes, buy a driver and get a fairway wood free (or for $1) and several other offers I’ve found either at my local golf shops and at some of the major online retailers. If you’ve got some cash, now is a great time to pick up some gear.