The "Core group of about 20 million golfers"

[billchao]

15 minutes ago, nevets88 said:

The tour makes most of its money from tv revenues and corporate sponsorships. TV ratings have been flat, Tiger Woods is pretty much gone, with no one to replace him, the streaming model is taking hold, which means lower profits because advertisers pay less for streaming ads.

I think you are speculating, or reading too many articles written by those who are. Tournament purses have increased in the last five years and most increases are real, meaning above inflation.

I don't have information about advertising revenue, but that's more a problem for broadcast networks than corporate sponsors. Given the huge contract that Fox Sports has for the US Open and the fact that streaming access is actually increasing, I doubt it is hurting business. More access to golf tournaments that allows people to follow specific groups they choose to instead of the select TV broadcast should actually increase viewership, though not necessarily TV ratings.

33 minutes ago, nevets88 said:

I guess corporate sponsors will always be there, but if fewer people watch, fewer eyeballs on corporate ads.

Just because people aren't watching on TV doesn't mean they aren't watching. You still watch golf, don't you? 

[nevets88]

20 minutes ago, billchao said:

I think you are speculating, or reading too many articles written by those who are. Tournament purses have increased in the last five years and most increases are real, meaning above inflation.

I don't have information about advertising revenue, but that's more a problem for broadcast networks than corporate sponsors. Given the huge contract that Fox Sports has for the US Open and the fact that streaming access is actually increasing, I doubt it is hurting business. More access to golf tournaments that allows people to follow specific groups they choose to instead of the select TV broadcast should actually increase viewership, though not necessarily TV ratings.

Just because people aren't watching on TV doesn't mean they aren't watching. You still watch golf, don't you? 

I'm just miffed they put out such a cr@ppy broadcast (at least imho), all the channels and they keep making more money.  It's like CEOs getting fired quarter after quarter of loses and then getting a golden parachute. The product sells so well, no matter how much crud you pile on it, it still gets the ad dollars.

[NJpatbee]

With the economy hitting the skids in 2008 and with an anemic recovery it should have been expected that some people no longer would spend discretionary money on golf.  Some courses closed and some are struggling to keep the lights on - over speculation on the growth of golf.  With Nike dropping golf equipment, Golfsmith on the verge of bankruptcy, and Adidas looking to sell Taylor Made it has become clear to most of us that we do not need new clubs that often - my Ping G15 driver is as long as any of the newer models I have tried.  Bur there are still millions of us playing and most courses in my region have a healthy flow of golfers.  I attended the PGA Championship last week with my 11 year old grandson and the majority of attendees that I saw were in their 20's and 30's.  The game is fine and the marketplace will adjust accordingly.

[newtogolf]

39 minutes ago, NJpatbee said:

With the economy hitting the skids in 2008 and with an anemic recovery it should have been expected that some people no longer would spend discretionary money on golf.  Some courses closed and some are struggling to keep the lights on - over speculation on the growth of golf.  With Nike dropping golf equipment, Golfsmith on the verge of bankruptcy, and Adidas looking to sell Taylor Made it has become clear to most of us that we do not need new clubs that often - my Ping G15 driver is as long as any of the newer models I have tried.  Bur there are still millions of us playing and most courses in my region have a healthy flow of golfers.  I attended the PGA Championship last week with my 11 year old grandson and the majority of attendees that I saw were in their 20's and 30's.  The game is fine and the marketplace will adjust accordingly.

IMO, Golfsmith is more about the inability of brick and mortar stores to compete with online businesses than it is about the current state of golf.  I'd also believe they want to restructure debt now and start fresh not just go out of business.  Clean up the balance sheet and make it more attractive for someone else to buy them.

With Sports Authority closing, Dick's scaling back their golf departments and Golf Galaxy locations there isn't much competition for Golfsmith except for the small number of PGA Tour Superstores.   

On a positive note with these big brick and mortar stores struggling, the smaller mom and pop stores and golf course pro shops should see an influx of business.