Jump to content
IGNORED

Adidas to Sell Ailing Golf Division (TaylorMade, Adams, Ashworth) to Focus on Clothing [Bloomberg]


nevets88
Note: This thread is 2967 days old. We appreciate that you found this thread instead of starting a new one, but if you plan to post here please make sure it's still relevant. If not, please start a new topic. Thank you!

Recommended Posts

  • Moderator

Warning - video autoplay is loud and a pain to pause. I wonder who its potential buyers would be? At half a billion USD, not many, will probably be bought out by someone like Callaway and the industry consolidates?

Quote

Outgoing Chief Executive Officer Herbert Hainer is cleaning up Adidas’s operations as he sets the table for Kasper Rorsted, who takes the reins in October. Adidas got into golf when it bought French ski and skate company Salomon in 1997, but younger consumers are staying away from the game, and it isn’t popular in emerging markets like China and India. Sales plummeted 13 percent last year as the industry has been beset by discounting.


‘‘The golf market is not growing at the moment but it’s also not falling further,” Hainer said during a call with reporters. The portion Adidas plans to keep is producing solid returns and the company is cutting labor and manufacturing costs, the CEO said.

http://www.bloomberg.com/news/articles/2016-05-04/adidas-decides-to-sell-golf-division-to-focus-on-clothing

Steve

Kill slow play. Allow walking. Reduce ineffective golf instruction. Use environmentally friendly course maintenance.

Link to comment
Share on other sites

Awards, Achievements, and Accolades

I can't see TaylorMade being swallowed up by a competing OEM; a venture capitalist takeover is more likely.

In my UnderArmour Links stand bag...

Driver: '07 Burner 9.5° (stiff graphite shaft)
Woods: SasQuatch 17° 4-Wood (stiff graphite shaft)
Hybrid: 4DX Ironwood 20° (stiff graphite shaft)Irons/Wedges: Apex Edge 3-PW, GW, SW (stiff shaft); Carnoustie 60° LWPutter: Rossa AGSI+ Corzina...

Link to comment
Share on other sites


27 minutes ago, Chilli Dipper said:

I can't see TaylorMade being swallowed up by a competing OEM; a venture capitalist takeover is more likely.

UA would be the most likely competitor but I'm not sure UA wants to be in the hardware business especially seeing how Nike and now Adidas are struggling with it.  Clearly the most profit is in the soft goods which UA already has.  

I can see Adams and Ashworth getting acquired by a Golfsmith or Dicks type business.  I don't see venture capitalists being interested in TaylorMade if Adidas retains the soft goods rights.  

  • Upvote 1

Joe Paradiso

Link to comment
Share on other sites

Awards, Achievements, and Accolades

51 minutes ago, newtogolf said:

UA would be the most likely competitor but I'm not sure UA wants to be in the hardware business especially seeing how Nike and now Adidas are struggling with it.  Clearly the most profit is in the soft goods which UA already has.  

I can see Adams and Ashworth getting acquired by a Golfsmith or Dicks type business.  I don't see venture capitalists being interested in TaylorMade if Adidas retains the soft goods rights.  

It would be a surprising move for Under Armour, since they haven't shown a lot of interest in entering the equipment business in sports where that is a less expensive proposition.

If potential buyers want soft lines, it wouldn't make sense to spin off Ashworth. Adidas has no need for a premium apparel brand catering to a "classic" golf style if it isn't going to be a golf company, but a parent of TaylorMade would.

In my UnderArmour Links stand bag...

Driver: '07 Burner 9.5° (stiff graphite shaft)
Woods: SasQuatch 17° 4-Wood (stiff graphite shaft)
Hybrid: 4DX Ironwood 20° (stiff graphite shaft)Irons/Wedges: Apex Edge 3-PW, GW, SW (stiff shaft); Carnoustie 60° LWPutter: Rossa AGSI+ Corzina...

Link to comment
Share on other sites


13 minutes ago, Chilli Dipper said:

It would be a surprising move for Under Armour, since they haven't shown a lot of interest in entering the equipment business in sports where that is a less expensive proposition.

If potential buyers want soft lines, it wouldn't make sense to spin off Ashworth. Adidas has no need for a premium apparel brand catering to a "classic" golf style if it isn't going to be a golf company, but a parent of TaylorMade would.

I don't consider Ashworth a major player in golf soft goods.  I'd guess they are ranked 15 - 20 and seem to do most of their business in discount retail and online stores.   

If Adidas retains the soft goods rights to TaylorMade, Adidas Golf and Adams Golf then I'm not too excited to acquire Ashworth if I'm a venture capitalist.  

Joe Paradiso

Link to comment
Share on other sites

Awards, Achievements, and Accolades

I'm sure the over-saturation of the equipment market hasn't helped the likes of TaylorMade or Nike. Seems like each has released a new driver or irons technology about every year recently.  I'd love to grab a new Nike Vapor driver but I can't justify dropping $300+ on one when the $250 one I bought two years ago is just fine. Apple is facing the same pinch with lagging iPhone sales - people just aren't upgrading as frequently as they did in the past (and phones are way more of a necessity golf clubs - I know that seems insane, right? :doh:). 

Could be an interesting gamble for an investor - particularly the notion of the younger customer base. I anticipate that Spieth, Fowler, Day, DeChambeau, etc will keep build a fan base and there will be a surge in this demographic.  Granted, the sure revenue will be on the apparel side but I could see it creeping over sooner rather than later onto the equipment side if you add a mid-range (I.e. more reasonably affordable for a 20-something) offering.

Driver- :nike: Nike VR-Pro Limited Edition 9.5* Diamana 'ahina Stiff Flex 3 Wood- :titleist: Titleist 980 5 Wood- :tmade: Taylormade R9 3i-PW- :tmade: Taylormade Tour Preferred (Dynamic Gold S300) Putter- :tarmour: Tommy Armour T-Line 150 (it's old but I love it and haven't been able to find anything that feels better)

Link to comment
Share on other sites

Awards, Achievements, and Accolades

  • Moderator

Golfweek on the development.

 

Steve

Kill slow play. Allow walking. Reduce ineffective golf instruction. Use environmentally friendly course maintenance.

Link to comment
Share on other sites

Awards, Achievements, and Accolades

Note: This thread is 2967 days old. We appreciate that you found this thread instead of starting a new one, but if you plan to post here please make sure it's still relevant. If not, please start a new topic. Thank you!

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


  • Want to join this community?

    We'd love to have you!

    Sign Up
  • TST Partners

    Golfer's Journal
    ShotScope
    The Stack System
    FlightScope Mevo
    Direct: Mevo, Mevo+, and Pro Package.

    Coupon Codes (save 10-15%): "IACAS" for Mevo/Stack, "IACASPLUS" for Mevo+/Pro Package, and "THESANDTRAP" for ShotScope.
  • Popular Now

  • Posts

    • Amazing US Open to watch. Of course I was rooting for Bryson, but a little part of me wanted a W for Rory. Hope this fuel Rory to win a major soon.  Interesting to see how much is going to take for Aberg to win his first major.  Scheffler is human, thank god.. we need more tight final rounds like this. 
    • This discussion and Bryson’s media figure reminds me of a trend you see all over the place in social media and Internet in general: staging. I don’t use Instagram a whole lot, but enough to come across videos that are obviously staged, but presented as happening randomly. It falls in like with the “fake news” part of the world where you can’t trust anything. People (influencers, celebrities, politicians etc.) throws stuff out all the time that are straight up lies, pretending ignorance, or twisted to make it sound more interesting than it actually is. Then there’s the overreactions. Youtube and Instagram are filled with thumbnails of shocked content creators “LOOK WHAT HAPPENED 🫣😲🫣”, then it’s some staged or stupid shit. I miss the time when most of what you found online was not staged or stupid. The sad part is that it works, generate clicks, ad revenue and people make millions on that stuff. At least Bryson is primarily a professional golfer. Bryson raking the 18th bunker while holding the trophy puts more of his face in the media. There’s no reason to do it, but it makes for some good photos and he’s building his persona. From the entire week you can see how he interacts with the audience way more than most of them out there. Part of it is probably just being Bryson and giving the audience something extra, but I always have the thought in the back of the head that it’s not the entire reason. Players being emotional, engaging and showing more of themselves than hitting a golf ball is good, but at some point you cross the line into being fake for the sake of attention.
    • It's not false if all they did was break ground but not build the thing until 2017. Again, the first "location" wasn't really a location if it was some dirt with a few ceremonial shovel scoops taken out of it. I don't think it was ever actually built. The second article doesn't even mention the first "location."
    • I couldnt find anything saying the first one was canceled so I assumed it was the same project. Admittedly the info on the specifics is limited. Either way, the original point of the earlier tweet by the guy was that no Payne Stewart named center was announced when Bryson started at SMU. Thats factually false. The fact that it ended up somewhere else is somewhat irrelevant imo. The two locations are only 10 miles apart as far as I can tell?
×
×
  • Create New...

Important Information

Welcome to TST! Signing up is free, and you'll see fewer ads and can talk with fellow golf enthusiasts! By using TST, you agree to our Terms of Use, our Privacy Policy, and our Guidelines.

The popup will be closed in 10 seconds...