GBR Friday | Why Topgolf Callaway Brands Emerge as Top Wall Street Investment After Being Beaten Down?
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 Community. Tom Miranda is with you today.
NOT EVEN $10M CAN SPICE THINGS UP. Scheffler and Rory triumphed over Koepka and DeChambeau at the PGA Tour-LIV Crypto.com Showdown in Las Vegas. Despite a hefty cryptocurrency prize, the event struggled with minimal player interaction (we know because they were wearing microphones) and some technical issues. We’ll talk about the circuits but, for now, let’s dive into the rest of the Golf Industry highlights.
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1. INDUSTRY
WHY TOPGOLF CALLAWAY TOPS WALL STREET’S WATCHLIST WHILE ACUSHNET HOLDS BACK
Are you navigating today’s volatile global markets and searching for solid investment opportunities in the Golf Industry? Last days, one of Wall Street’s most reputable gurus have ranked Topgolf Callaway Brands Corp. (MODG) among the Top 5 beaten-down stocks to buy as we kick off 2025, while another one toke a contrasting stance with Titleist and Footjoy - Acushnet Holdings (GOLF). Curious about the strategic moves that could unlock significant upside potential for investors? The full insights are answered in our in-depth analysis ahead.
USGA UNVEILS 2024 GOLF PARTICIPATION TRENDS AND ENHANCED GHIN FEATURES
The USGA has released its 2024 Golf Scorecard, a comprehensive analysis of participation trends in the United States, based on over 77 million scores submitted under the World Handicap System (WHS). With data spanning January through November 2024, the report highlights key insights, including a record-breaking 13.8 million 9-hole rounds, a 40% increase in 9-hole play since 2020, and over 3.35 million golfers maintaining a Handicap Index—a 30% rise over the same period.
The report underscores golf’s growing accessibility and diversity, noting that short courses have gained popularity following their eligibility for Course and Slope Ratings, with more than 180,000 scores posted at over 350 short courses nationwide. Additionally, the data dispels the notion that handicaps are primarily for competitive players, revealing that 94.5% of all rounds posted in 2024 were recreational.
Accompanying the Scorecard’s release is the newly redesigned GHIN Rewind experience, a year-in-review feature available via the GHIN app. Presented by Sentry, the Rewind offers golfers personalized insights into their 2024 performance, including Handicap Index changes, average scores, rounds played, and favorite courses. Now featuring an interactive, multi-slide format, the GHIN Rewind allows users to celebrate milestones and share highlights with friends.
“It’s been exciting to see year-over-year trends develop as the World Handicap System has matured, shedding light on how and where the game is being played in the US,” said Steve Edmondson, USGA Managing Director of Handicapping and Course Rating. “We’re grateful for our Allied Golf Associations and excited to provide players with deeper insights into their game.”
Golfers can access their GHIN Rewind if they posted at least three 18-hole rounds in 2024, with a complete data refresh set for January 2025 to include December activity. For more details on the app and its features, visit GHIN Official website.
GENERATIONAL SHIFT IN DINING HABITS CHALLENGES GOLF CLUBS TO MODERNIZE
A new report from ClubGrub highlights a significant generational shift in how American golfers aged 52 and under view food and beverage services at golf clubs. Younger golfers frequently describe existing options as “inconvenient,” “unreliable,” and “uninspired,” pointing to longstanding inefficiencies that include limited beverage cart menus, outdated call-in systems, and rushed service at the turn. These frustrations have led to reduced spending, an increase in self-supplied food and drinks, and lost revenue opportunities for clubs, negatively impacting lifetime member value.
The report underscores the need for modernization, with next-generation golfers favoring mobile-first solutions and more seamless access to premium food and beverage services. “Hot dogs are not hospitality,” said Spencer Potter, ClubGrub’s founder. “This report, alongside data from ClubGrub’s GPS technology, reveals a more convenient, mobile-first preference of younger members and guests, as well as opportunities for operators to extend their reach across the entire club experience, from the back nine and range bays, to halfway houses and home delivery in golf communities.”
To remain competitive, golf clubs are encouraged to innovate beyond traditional clubhouse dining and integrate services that reflect evolving member expectations, from enhanced on-course delivery systems to broader accessibility across golf communities. These changes could redefine the dining experience and help clubs boost revenue while fostering stronger engagement with younger members. By The Golf Business.
ADVANCED TURF SOLUTIONS ACQUIRES ATLANTIC GOLF AND TURF
Advanced Turf Solutions has announced its acquisition of Atlantic Golf and Turf, expanding its presence in New England. Set to close early next year, the deal will bring Atlantic Golf and Turf’s entire team under the Advanced Turf Solutions umbrella. This marks the company's second major move in the Northeast following its recent acquisition of Valley Green. The integration is designed to enhance customer service, expand product offerings, and preserve longstanding client relationships. More in the official site of Advanced Turf.
2. CIRCUITS
TGL: A BOLD REINVENTION OF GOLF WITH CUTTING-EDGE TECHNOLOGY
Launching on Tuesday, January 7, on ESPN and ESPN+, TGL—the indoor golf league co-founded by Tiger Woods and Rory McIlroy—is transforming the sport with its innovative format that seamlessly blends traditional elements with high-energy production.
Described as “Topgolf on gene doping” by Michael Callahan in Fast Company, TGL will combin immersive fan experiences with fast-paced matches. With six teams vying for the $9M SoFi Cup, TGL leverages advanced technology to create a visually dynamic spectacle, including unique camera setups like rail and spider cams, as detailed by Dave Shedloski in Golf Digest.
TGL’s format is designed to captivate casual viewers while engaging diehard fans. Featuring PGA Tour pros, the league showcases innovative gameplay elements such as the 'screen zone,' which condenses matches into an engaging two-hour window. Hugh Kellenberger of The Athletic compares TGL’s emphasis on entertainment over monetary stakes to the NBA and UFC, while Tom D’Angelo of The Palm Beach Post highlights its potential to modernize the golf viewing experience."
In addition, GL’s unique appeal has been identified as a cornerstone of Disney’s strategy to grow sports content in the Nordic region, aligning with its efforts to attract younger, tech-savvy audiences. By Jonathan Rest in Sport Business.
LIV GOLF NEARING BROADCAST DEAL WITH FOX SPORTS
LIV Golf is in advanced discussions with Fox Sports for a 2025 broadcast partnership, signaling a move away from its previous agreement with The CW. Key details, such as the inclusion of rights fees and whether tournaments will air on Fox or FS1, remain under negotiation. The league is restructuring its schedule to prioritize international events and finish earlier in the season to avoid clashes with football programming. This deal represents a critical step in boosting LIV’s visibility. By Josh Carpenter in Sports Business Journal.
FUTURE CHAMPIONS GOLF ANNOUNCES COLLEGIATE SERIES
Future Champions Golf (FCG) has unveiled the FCG Collegiate Series for 2025, with luxury golf bag brand Vessel as the title sponsor. The series aims to support collegiate golfers by offering a competitive platform that bridges the gap between college and professional golf. Vessel’s involvement enhances the series' prestige, promising participants top-tier tournament experiences. FCG continues its mission to foster talent and provide pathways to professional opportunities, driving innovation in the sport. By The Golf Wire.
3. EQUIPMENT
HEAD VENTURES INTO GOLF APPAREL WITH PERFORMANCE AND STYLE
HEAD, a global leader in sports equipment, has made its debut in the golf lifestyle market with the launch of its first-ever golf apparel collection. Known for its excellence in tennis, skiing, and snowboarding gear, HEAD’s expansion into golf represents a strategic effort to diversify its offerings and cater to a growing audience within the sport.
The collection features a blend of high-performance fabrics and sleek, modern designs tailored for both amateur enthusiasts and professional golfers. Prioritizing functionality, the apparel incorporates moisture-wicking technology, UV protection, and stretch materials to enhance comfort and mobility during play. Beyond the course, the collection’s versatile style positions it as a crossover option for casual and athletic wear.
HEAD’s entry into the golf sector reflects the broader trend of sports brands tapping into golf’s evolving demographics, which increasingly include younger, style-conscious players. The move aligns with the company's strategy to remain at the forefront of innovation while appealing to a global audience. With this launch, HEAD aims to strengthen its presence in the golf community, offering products that bridge performance needs with a contemporary aesthetic. By Hypebeast.
4. PEOPLE TO WATCH
GCSAA RECOGNIZES MATT GOURLAY WITH 2025 PRESIDENT'S AWARD FOR ENVIRONMENTAL STEWARDSHIP. The superintendent at Hillcrest Country Club in Boise, Idaho, has been honored with the 2025 President’s Award for Environmental Stewardship by the Golf Course Superintendents Association of America (GCSAA). A third-generation superintendent, Gourlay is celebrated for his innovative and sustainable golf course management practices. His Natural Resource Management Plan integrates advanced strategies in pest control, water conservation, and energy efficiency, all while maintaining exceptional playing conditions. Gourlay’s career achievements also include multiple GCSAA/Golf Digest Environmental Leaders in Golf Awards, underscoring his dedication to environmental excellence in golf. By Sydney Fischer in Golfdom.
PGA TOUR COO RON PRICE ANNOUNCES RETIREMENT
Ron Price, Chief Operating Officer of the PGA Tour, is retiring after a 30-year tenure. Price played a pivotal role in shaping the Tour’s strategy, including its Congressional representation during discussions on the Saudi PIF partnership. His departure coincides with ongoing organizational restructuring. By Josh Carpenter in Sports Business Journal.POWAKADDY STRENGTHENS SALES TEAM WITH JACK VENN APPOINTMENT. PowaKaddy has appointed Jack Venn as Area Sales Manager for South-West England and South Wales. A PGA Professional with extensive experience, Venn aims to enhance customer service and drive growth in his new role. By Dan Owen in Golf Retailing.
GARY WILLIAMS RETURNS TO GOLF CHANNEL WITH “5 CLUBS”
Renowned golf broadcaster Gary Williams is set to return to morning programming on the Golf Channel as the host of “5 Clubs,” a new show blending news, interviews, and industry insights. The program is expected to cater to dedicated golf fans with fresh perspectives on the sport. By Awful Announcing.
5. BRIEFS
TRUMP TURNBERRY’S AILSA COURSE UNDERGOES A £1 MILLION WINTER REFURBISHMENT LED BY RENOWNED ARCHITECT MARTIN EBERT, REOPENING IN APRIL 2025. The upgrades will focus on two key holes, the par-5 7th and par-4 8th, enhancing their visual appeal and playing experience. The 7th hole will see the most dramatic transformation, moving the green 50 yards to the coastline. Ebert credits the Trumps’ passion for Turnberry as a driving force behind the improvements. “The Trumps have a huge passion for Turnberry and are full of ideas,” said Ebert, acknowledging their vision for the new 7th green. He described the changes as transformative, making the course “greater than ever.” More in MacKenzie and Ebert´s website.
TROON ACQUIRES THE CLUB AT CORDILLERA, A PREMIER PRIVATE GOLF COMMUNITY IN EDWARDS, COLORADO. The purchase, finalized on December 10, includes three 18-hole golf courses (Valley, Mountain, and Summit), three clubhouses, and various amenities, marking a seamless continuation of Troon Privé’s management since 2013. Troon plans continued investments following the Club’s recent multi-million-dollar renovations. In 2025, Troon will oversee a bunker renovation on the Tom Fazio-designed Valley Course, while the current management team, including General Manager Michael Henritze, will remain in place to ensure operational stability. Full press release in Troon Golf.
DIRIYAH COMPANY AND GOLF SAUDI ANNOUNCE STRATEGIC PARTNERSHIP. The project is as part of the nation’s Vision 2030 initiative. The partnership aims to construct sustainable courses, foster local talent, and host international tournaments, strengthening Saudi Arabia’s position in global golf. By Golf Business News.
THE BIG GOLF RACE PARTNERS WITH TRACKMAN FOR WINTER CHALLENGE. The Big Golf Race has teamed up with TrackMan to launch a Winter Challenge, enabling golfers to compete virtually using advanced simulation technology. This initiative keeps players engaged during the off-season while supporting charitable causes through entry fees and donations. By Golf Retailing.
FIVE IRON GOLF EXPANDS INTO MINNEAPOLIS WITH THR3 JACK ACQUISITION. Indoor golf company Five Iron Golf has acquired Thr3 Jack, a golf and dining venue in Minneapolis’ North Loop. The new location, featuring TrackMan simulators and a sports bar atmosphere, marks Five Iron Golf’s first Minnesota venue and aligns with its mission to make golf more inclusive and social. By Golf Course Industry.
BOYNE RESORTS COMMITS TO 100% RENEWABLE ENERGY BY 2028. Boyne Resorts has partnered with Consumers Energy to power its Michigan properties, including Boyne Mountain Resort and Bay Harbor Golf Club, with 100% clean energy by 2028. This move is part of the company’s broader sustainability goals, which include solar and hydroelectric initiatives. Full Press Release in Barron´s.
PORTUGUESE SALGADOS GOLF CLUB EMBARKS ON €3.2 MILLION RENOVATION. The project is set to conclude in 2025. Upgrades include a new irrigation system, revamped bunkers, and an island green on the 12th hole. Managed by Troon, the project emphasizes sustainability and habitat creation to enhance the club’s appeal. By Golf Course Industry.
6. MUST READ AND WATCH
Jeff Babineau, Popular Golf Journalist, Dies Unexpectedly at 62. He was remembered for his storytelling and contributions to the sport. By Paul Daly on Pro Golf Weekly.
The Final Interview: Martin Slumbers on the Future of Golf, discussing his legacy and the future of golf, emphasizing modernization and inclusivity. By Michael Catling on Today's Golfer.
Revised Feddinch Plans Branded 'Monstrous' by Local Residents. Residents criticize revised development plans, calling them disruptive. By Claire Warrender on The Courier, in Scotland.
TrackMan Innovation: A Willy Wonka’s Chocolate Factory for Golf. By Kristy Dorsey on Herald Scotland.
Why UK Brands Are Investing in Golf: The Power of Golf Marketing: UK brands are increasingly using golf to target affluent audiences through sponsorships and collaborations. That´s an explanation on Golf News.
7. JUST FOR PAID SUBSCRIBERS
TOPGOLF CALLAWAY BRANDS (MODG): A BEATEN-DOWN STOCK WITH PROMISING UPSIDE
In a time when global markets face volatility and investors search for value, Topgolf Callaway Brands Corp. (NYSE: MODG) has emerged as a standout among the Top 5 Best Beaten-Down Stocks to Invest In, according to Insider Monkey's analysis by Bob Karr. Meanwhile, the broader golf industry presents mixed signals, with Acushnet Holdings (NYSE:GOLF) showing steady performance but failing to excite investors, as noted in Adam Hejl's recent analysis for Stock Story.
Why MODG Stands Out in a Challenging Market
Topgolf Callaway Brands, known for its leadership in golf equipment, apparel, and entertainment venues, has faced its share of challenges this year. Same-venue sales dropped 11% in Q3, reflecting broader macroeconomic concerns like cautious consumer spending and declines in larger group events. Yet Wall Street analysts believe the company is on the cusp of a turnaround, with new initiatives, venue expansions, and a bold strategic separation plan driving its growth prospects into 2025.
In contrast, Acushnet Holdings, the producer of the renowned Titleist Pro V1 golf ball, has gained 9.8% over the last six months, outpacing the S&P 500's 7.7% return. Despite this, Adam Hejl from StockStory identifies key concerns about Acushnet’s long-term growth potential:
Disappointing Long-Term Revenue Growth: Acushnet's sales grew at a modest 7.9% compounded annual growth rate over the past five years, below the benchmark for the consumer discretionary sector.
Mediocre Free Cash Flow Margin: With an average 9.6% free cash flow margin over the last two years, the company’s reinvestment potential is limited.
Slim Projected Revenue Growth: Analysts predict revenue growth of only 5.2% in the next 12 months, reflecting a lack of catalysts to accelerate top-line performance.
While Acushnet remains a steady performer, Topgolf Callaway Brands offers greater upside due to its bold strategic initiatives. Let’s dive deeper into MODG’s turnaround strategy.
The Growth Catalyst Behind MODG
Wall Street remains optimistic about MODG’s strategic spin-off, set for H2 2025, which will separate Callaway’s equipment and apparel business from Topgolf’s entertainment venues. Analysts highlight three key benefits: