Golf Bizz Review - Tuesday, dic 3
Every Tuesday and Friday Morning We Bring You the Ten-Minute Summary of What´s Going on in the Golf Industry While you Are Golfing
Good morning, GBR Family. Tom Miranda here.
WE NEARLY CHOKED ON OUR TURKEY on Friday when Sportico revealed that Jay Monahan raked in a jaw-dropping $23 million last year. And that’s just the start. This week:
SOLO TRES FRASES
Let´s start!!
Briefs
1. INDUSTRY
PRIVATE GOLF CLUBS: A HIDDEN ECONOMIC POWERHOUSE [Subscribe here]
Private golf clubs are more than just exclusive social hubs—they are vital contributors to local economies.
How do these clubs impact employment in your community?
What ripple effects do their operations create across industries like hospitality, construction, and retail?
And which regions of the U.S. benefit the most from their economic activity?
[This story is for paid subscribers, subscribe here to keep reading]
HONMA GOLF’S RESILIENCE AMID CHALLENGES: INTERIM RESULTS FOR FY2024/25
Navigating a Challenging Market. HONMA Golf Limited, the leading name in the golf industry known for its fusion of Japanese craftsmanship and innovative technology, reported a revenue of JPY9,814.5 million (USD 64.8 million) for the six months ending September 30, 2024. This marks a 25.6% decline compared to the same period in the previous year, reflecting intensified market competition and economic slowdowns in key regions. Despite these challenges, HONMA demonstrated resilience by focusing on premium product segments and a robust direct-to-consumer (DTC) strategy.
HONMA's flagship BERES09 golf clubs and its SAKATA Lab putters saw strong adoption, particularly in Japan and Southeast Asia. Revenue from BERES clubs grew by 18.4% and 49.4%, respectively. Simultaneously, apparel revenue increased by 6.1% year-over-year, bolstered by margin improvements to 57.3% despite weak consumer sentiment in China.
A Strategic Shift Toward DTC and Global Growth. HONMA’s DTC revenue grew by 6.5%, now comprising 56.1% of the company’s total revenue. Retail sales increased by 5.4% and 10.0% in Japan and China, respectively, while e-commerce saw an 8.1% rise overall. In Europe and North America, where the company optimized its distribution networks, revenue increased by 92.4% and 23.5%, respectively, marking significant recoveries in these mature markets.
Looking ahead, HONMA is sharpening its focus on super-premium and premium-performance segments, leveraging digital capabilities and product innovation. Chairman Liu Jianguo emphasized the company’s commitment to blending its rich heritage with modern strategies, stating, “Our enhanced digital capabilities and streamlined distribution position us well for future growth.” Full press release here.
BRIEFS
E-COMMERCE FUELS HOLIDAY GOLF SPENDING. The National Golf Foundation (NGF) reports a sharp rise in online golf merchandise purchases, with 54% of golfers shopping online in 2024 compared to 38% in 2019. Core golfers, who represent the most engaged segment of the market, are driving this growth, particularly through self-gifting and demand for personalized products.
GOLF BALL SALES RISE AMID FAVORABLE WEATHER. Data from Circana Golf Datatech reveals a 1.9% increase in golf ball sales for October 2024 compared to the previous year, buoyed by improved weather conditions in northern states. Circana, a trusted source for retail and consumer data, also notes strong sales for other consumables like gloves and tees, although club categories such as irons experienced a slight decline.
TRUMP TURNBERRY EXCLUDED FROM OPEN CHAMPIONSHIP AS $196M BALMEDIE EXPANSION MOVES FORWARD: The R&A confirmed to Alistair Dunsmuir of The Golf Business that Trump Turnberry will remain excluded from the Open Championship rotation, citing concerns over potential media distractions. The iconic Scottish links course, owned by the Trump Organization, continues to be recognized for its exceptional design and history.
Meanwhile, Donald Trump has secured approval for a $196 million expansion at his Trump International resort in Balmedie, Aberdeenshire, Scotland. This development includes a second 18-hole course, the MacLeod Course, alongside new homes, shops, and restaurants. The project, which faced local protests, has been lauded for its potential economic benefits and is set to open next summer.
Additionally, Trump's firm recently purchased five Coastguard Cottages near the resort for £660,000, according to The Press and Journal, a daily regional newspaper for the Highlands. Plans are underway to renovate these properties, possibly as holiday homes, further enhancing the resort's offerings.
TOPGOLF EXPANDS IN OHIO. The company from Callaway Brands has started construction on a new location in Avon, Ohio, marking its second Cleveland-area facility. Set to open in 2025, the two-story venue will feature 60 climate-controlled hitting bays alongside entertainment options, creating around 250 permanent jobs and 150 construction roles.
GOLF GENIUS POWERS GOLFZON TOUR SCORING. The American company specializing in cloud-based golf management software, will provide scoring and tournament management for the GOLFZON Tour. The global simulator league, featuring teams from North America and the UK, is part of GOLFZON’s efforts to expand competitive indoor golf.
MASSIMO GROUP INTRODUCES ECO-FRIENDLY ELECTRIC VEHICLES. The U.S.-based manufacturer of power sports vehicles, launched its MVR Series electric carts. These vehicles are designed for recreational and professional use and reflect growing consumer demand for versatile and sustainable transportation options. Complete press release.
NESTLÉ PARTNERS WITH PGA TO EXPAND CONFECTIONERY SALES. Nestlé has partnered with the PGA to introduce its popular confectionery brands, including KitKat, Aero, and Quality Street, into pro shops across the United Kingdom. This partnership aims to enhance food and beverage sales at golf facilities, a growing market segment that accounted for 7.5% of pro shop sales in 2024, up from 7.1% in 2023. Some shops have seen profit margins exceeding 50% on these items, highlighting the revenue potential for PGA members. Nestlé will also provide merchandising advice and exclusive offers to help members maximize profitability while tailoring product selections to meet golfer preferences. More on the PGA website.
AESCAPE BRINGS ROBOTIC MASSAGES TO GOLF CLUBS. Aescape, a New York-based company specializing in AI-powered wellness technology, will debut its autonomous massage tables at two Texas golf clubs. The machines offer personalized, therapist-free massages and are part of a growing trend toward tech-driven wellness amenities. Full story by Mike Dojc in Forbes.
TRUGOLF LAUNCHES E6 APEX SOFTWARE: The American leader in golf simulation technology introduced its E6 APEX platform, powered by IBM’s watsonx.AI. The software enables rapid course development and personalized coaching, catering to amateur and professional players. More in Trugolf.
WHOOSH EXPANDS SOFTWARE FOR RECREATIONAL FACILITIES: The U.S.-based software company specializing in golf and recreational management tools, has expanded its platform to include solutions for simulators, driving ranges, and fitness centers. Full press release.
2. CIRCUITS
LPGA COMMISSIONER MOLLIE MARCOUX SAMAAN STEPS DOWN (Subscription required)
After 3½ years leading the LPGA, Mollie Marcoux Samaan has officially stepped down amidst reports of potential changes within the organization’s Board of Directors. Her tenure marked a period of record-breaking growth, including skyrocketing prize funds and historic fan engagement. But it also faced challenges, from sponsorship losses to operational missteps at high-profile events.
What’s next for the LPGA as it navigates these transitions?
How will the incoming Commissioner tackle key issues like media visibility and potential partnerships?
Read the full story, available only for our paid subscribers.
SAUDI-BACKED LIV GOLF CONSIDERS DEAL WITH DP WORLD TOUR
LIV Golf, backed by Saudi Arabia's Public Investment Fund, is reportedly exploring a partnership with the DP World Tour in a move that could reshape global golf dynamics, according to an exclusive published in Bloomberg by Gillian Tan, Giles Turner, and David Hellier. These discussions are distinct from the ongoing negotiations between the Saudi fund and the PGA Tour, signalling LIV Golf’s strategy to strengthen its international presence.
As Joseph LaMagna has highlighted in The Fried Egg, the 2025 schedules of the two circuits reveal minimal conflicts, according to reports. Notably, LIV’s Singapore event concludes days before the DP World Tour’s Porsche Singapore Classic, suggesting a deliberate effort to enable player participation across both tours. These developments, separate from the Saudi Public Investment Fund and PGA Tour negotiations, point to a strategic collaboration to boost tournament quality and player flexibility.
Regaining Access: Ron Green Jr. of Global Golf Post highlights that an agreement between the Public Investment Fund (PIF) and the DP World Tour could potentially "pave the way for players who left the European circuit to regain their eligibility to compete." Notably, LIV golfer Sergio García has recently reapplied for DP World Tour membership, aiming to secure a spot on the European Ryder Cup team next fall.
LIV GOLF: SCOTT O'NEIL TAKES THE HELM AT LIV GOLF AS NORMAN'S LEGACY LIVES ON
LIV Golf is undergoing a pivotal leadership change as Scott O'Neil, former CEO of the Philadelphia 76ers and New Jersey Devils, is set to replace Greg Norman. This shift comes as LIV Golf enters its fourth season, aiming to refine its strategy and improve relationships with PGA Tour players. The change coincides with ongoing negotiations between the PGA Tour and Saudi Arabia's Public Investment Fund (PIF), which could reshape the golf industry’s power dynamics. O'Neil's expertise in sports and entertainment is expected to guide LIV Golf's future development.
Amid this transition, Greg Norman's legacy is being celebrated by players such as Marc Leishman, who credit him with reshaping golf’s financial landscape. Under Norman’s leadership, LIV Golf introduced significant prize funds and signing bonuses, compelling the PGA Tour to follow suit. While his tenure stirred controversy, many acknowledge that Norman elevated earnings and opportunities for professionals across the sport, leaving an indelible impact on modern golf. More info in Golf Monthly.
PGA TOUR COMMISSIONER JAY MONAHAN’S REPORTED $23 MILLION SALARY SPARKS DEBATE ON EXECUTIVE COMPENSATION
An exclusive report by Daniel Libit published in Sportico has unveiled that PGA Tour Commissioner Jay Monahan received a staggering $23 million in compensation. This revelation has ignited widespread debate over executive pay within sports organizations and has put the spotlight on the PGA Tour's financial practices.
A Spotlight on Executive Pay. The details provided by Sportico have led many to question the appropriateness of such high executive salaries, especially when juxtaposed with the earnings of the players who are the mainstay of the sport. Critics argue that while players generate revenue and engage fans through their performance on the course, top executives are receiving disproportionately large financial rewards. Stakeholders are questioning why such significant compensation figures were not more openly disclosed.
RYGGS JOHNSTON WINS AUSTRALIAN OPEN FOR FIRST TITLE. JIYAI SHIN WINS WOMEN’S EVENT
Ryggs Johnston, a 24-year-old from Montana, secured his first professional title at the Australian Open with an 18-under 269 finish, becoming the first American winner of the Stonehaven Cup since Jordan Spieth in 2016. Johnston’s three-stroke victory over Curtis Luck included a strong start with an eagle and a flawless back nine. Marc Leishman and Jasper Stubbs tied for third, while defending champion Joaquin Niemann struggled.
IN THE WOME AUSTRALIAN OPEN, South Korea’s Jiyai Shin claimed her second title with a 17-under 274, two shots ahead of Ashleigh Buhai. Shin’s decisive seven-foot putt on the final hole marked her 65th professional victory, a decade after her first Australian Open win.
PGA-LIV VEGAS MATCH TO FEATURE $10M CRYPTO PURSE.
The "Crypto.com Showdown" on December 17 at Shadow Creek Golf Course in Las Vegas will pit PGA stars Scottie Scheffler and Rory McIlroy against LIV’s Brooks Koepka and Bryson DeChambeau in an 18-hole Ryder Cup-style match. With a $10 million cryptocurrency purse, players must register with Crypto.com to claim their winnings in CRO tokens. Broadcast at 6 p.m. ET on TNT, the event combines four-ball, singles, and alternate-shot formats, blending professional golf with the promotion of digital assets.
3. EQUIPMENT
LEAKED IMAGES REVEAL PING'S UPCOMING G440 DRIVER WITH ENHANCED DESIGN FEATURES
Pictures have been released showing Ping’s new driver for 2025, the G440.
The G440 is now on the USGA’s approved list. It will be available in Max, LST, and SFT versions in right—and left-hand models.
Ping hasn’t released any details regarding the technology powering the G440. In-hand pictures sourced from Golf WRX indicate the heads feature a CarbonFly wrap introduced in the G430 series. Turbulators also continue in the G440 series, helping improve airflow over the crown for increased clubhead speed. The G440 also has a single moveable tungsten weight positioned in the rear of the head to create a draw or fade bias or to improve stability by placing the weight in a central position.
CALLAWAY'S 2025 ELYTE DRIVERS APPEAR ON USGA CONFORMING LIST, SPARKING SPECULATION ON NEW MODELS
Callaway’s 2025 flagship driver offering has also appeared on the USGA’s conforming list this week.
The new range is named Elyte, which could be a nod to the company's founder, Ely Callaway.
Four models have appeared on the conforming list: Elyte, Elyte TD (Triple Diamond), Elyte X, and Elyte Max.
As with the Ping G440, technical information is unavailable to fully understand the technology powering the new lineup.
Mygolfspy has deducted from the images on the USGA’s website that:
The Elyte model (minus the Triple Diamond) has a fixed weight system at the back of the head compared to the moveable track seen in the current AI Smoke drivers.
The Elyte Triple Diamond follows a similar fixed weighting model to the AI Smoke Triple Diamond.
The Elyte range is expected to feature extensive use of carbon fiber and a version of their AI Smart Face technology.
4. EXECUTIVE APPOINTMENTS
Appointed Commercial Director for Ladies European Tour: Theresa McCann has been named to the role, succeeding Fiona Harold, who has moved to World Netball. Her extensive experience in sports management is expected to enhance the tour's commercial initiatives.
ASGCA Elects Brian Costello as President: An accomplished golf course architect, Costello has been elected president of the American Society of Golf Course Architects, with a portfolio including iconic designs across the U.S., Asia, and Europe.
Claire Welsh to Direct CPKC Women’s Open: Welsh was appointed tournament director for Canada’s national women’s golf championship, an event showcasing the sport across cities nationwide.
Tim Minnema Joins Central Turf & Irrigation Supply: With decades of experience in distribution, Minnema has been named COO of the North American wholesale supplier of landscaping products.
Frederick Port Joins OnCore’s Advisory Board: The former president of Callaway Golf International has joined OnCore to guide the launch of the Genius Ball, a product featuring data-tracking technology.
5. MUST-READS OF THE WEEK
Goodbye, Chain Drugstores. Hello, Golf Simulators. Ginia Bellafante explores in The New York Times how New York City’s vacant storefronts are being transformed into indoor golf simulators, fueled by a pandemic-era golf surge and excess retail space. By Ginia Bellafante in The New York Times.
Jared Doerfler analyzes TGL's potential to revolutionize televised golf through its innovative two-hour match format and strong media partnerships, despite initial challenges.. More on Perfect Putt.
How to Spot Doomed M&A Deals. Callaway Golf's $2.1 billion Topgolf acquisition exemplifies M&A failures, showcasing how over-leveraged debt and poor business integration can doom corporate mergers. Read the full story from Martin Fridson on Forbes.
The Secretive World of Augusta National Membership. A deep dive into why Augusta remains the ultimate golf prestige symbol. By Joe Pompliano’s Yahoo Finance Sports Report.
Why the Australian Open Deserves to Be Golf’s Fifth Major. Jack Milko makes a compelling case argues the Australian Open merits major status by highlighting its century-long history, world-class courses, and unique potential to expand golf's global reach beyond traditional tournaments.. By Jack Milko in Playing Through -SB Nation.
Is YouTube Golf Killing the PGA Tour? Rob McGarr explores how digital creators like Bryson DeChambeau are challenging traditional golf broadcasting, with the PGA Tour experiencing a 19% viewership decline and struggling to maintain audience interest in 2024. In Today's Golfer.
