GBR WEEKLY | Golf's Tumultuous Days: Industry Giants Thrive Amid Off-course Drama and Nelly and Schauffele Dominance
Despite Personal Turmoil Involving Top Players, Acushnet and Topgolf Callaway Report Strong Sales, While Schauffele Claims PGA Title and Korda Dominates LPGA
Hey GBR Fam.
Need a quick golf fix? We've got you covered. Our team spent the week combing through tons of golf news – over 55 industry journals, major news outlets, newsletters, and even top podcasts! We've boiled it all down to the essentials, so you can catch up on everything that happened in the world of golf in under 10 minutes.
If you stick with us, we'll unravel the week's key events:
Q1 Sales Figures Announced For Acushnet and Topgolf Callaway
Schauffele Claims First Major Title and Nelly Wins Again
T-Mobile Enhances US PGA Championship With 5G Technology
CBS Sport’s New Chair Berson Not Worried By Viewing Figures
Rickie and Rocket Back Together
Fitzpatrick Signs Up With Arccos
But before we start, just a quick reminder:
🤑 Industry Titans Score Big Financially…
In the midst of personal dramas involving its top players, the golf industry is thriving. The recent financial reports from the two industry’s giants, Acushnet Holdings Corporation and Topgolf Callaway, paint a picture of a sector in robust health.
Titleist Drives Double-Digit Q1 Growth in U.S. Market for Parent Company
The parent company of Titleist, FootJoy, and Kjus, reported a 3.1% increase in sales for the first quarter of 2024, reaching $707.6 million. This growth was driven by a 13% increase in the American market, totaling $418 million, which offsets a decrease of 8.5% in the EMEA, Korea, and Japanese markets.
Titleist Performance
Delving deeper into the numbers, Titleist clubs and balls led the way with a 15% increase in sales, spurred on by the launch of the new Vokey SM10 wedges and new versions of the AVX, Tour Soft, and TruFeel golf balls.The SM10 range and the T-Series irons accounted for a large percentage of the $204 million worth of club sales. While the TSR range of drivers, fairway woods, and hybrids continues to be popular, sales were down as the range entered its second-year cycle.
Golf ball sales for the quarter hit $208 million. The ever-popular Pro V1 remained a solid seller, but Titleist will also be pleased that the new AVX ball and the budget-friendly Tour Soft and TruFeel balls have performed well in Q1 sales.
FootJoy Concerns
An area of concern will be FootJoy, where Q1 sales were down 6% over the same period last year, with sales of $193 million.
“I am pleased to report on Acushnet’s solid first quarter, which benefited from the continued strength of Titleist golf balls and golf clubs and terrific execution by our global operations teams in launching a comprehensive line up of new products across our Titleist, FootJoy and Kjus brands.”
Dave Maher, President and CEO of Acushnet Holdings.
Topgolf Callaway Brands reports strong Q1 amid challenges
In the opposite sidewalk, Topgolf Callaway, also announced its Q1 sales figures last week. The headline figure is company sales of $1.144 billion for the quarter, which Topgolf Callaway says aligns with their predictions.
The $1.144 billion is impressive, but it is down 2% from the same period last year. More concerning is that the company only made a $7 million profit on the $1.144 billion sales, which is an eyebrow-raising 75% down from the same period in 2023.
Topgolf Expansion. Of the three businesses that make up the Topgolf Callaway empire, Topgolf was the star of Q1, with sales reaching $423 million, a 5% increase over Q1 2023, fuelled by new venues opening.
Golf Equipment Sales were up marginally, at 1.4% compared to last year, at $405 million. The new Ai Smoke range has proven to be a hit, with Topgolf Callaway claiming the number one spot in driver market share and Odyssey putters maintaining their number one spot in putter sales.
Active Lifestyle Segment Decline. The Active Lifestyle Segment experienced a 15% decline in sales, totaling $271.5 million.
The Topgolf Callaway financials made no mention of the reports that emanated from South Korea in March, in which it appeared that Callaway was about to be put up for sale. Company officials have denied the reports since they came to light, and there would not necessarily be any correlation between the speculation and impact on sales in this instance.
“Overall, we feel good about our start to 2024 and the strength of our core brands and markets. We remain confident in our targets for this year and are taking up our cash flow and EPS targets as well as starting the process of paying down debt. Perhaps most importantly, we believe the fundamental engine of our company is continuing to strengthen, and we feel great about our long-term direction and opportunity.”
Chip Brewer, President and CEO, Topgolf Callaway
…And Meanwhile, Drama Enshrouds Top Players 🎭
While the golf industry is experiencing remarkable growth, the world of professional golf is not without its dramas.
Rory McIlroy Files for Divorce from his wife of seven years, Erica Stoll, just before the PGA Championship. The couple, who met during the Ryder Cup in 2012 and married in 2017, have decided to part ways. This personal upheaval coincides with his professional struggles, including his issues with LIV Golf and his resignation from the PGA Tour’s Policy Board.
And Just When We Thought We Had Seen It All… Scottie Scheffler Arrested. Nº1 of the World was arrested on Friday morning of the PGA Championship. This incident added to a week already marked by chaos and tragedy, including the death of a tournament employee.
Has Jon Rahm ruined his career by moving to LIV? The two-time major champion failed to make the cut at Valhalla, marking his first missed cut at a major since the 2019 PGA Championship. This also ended a 26-year streak for Spanish golfers making the cut at major tournaments.
🥇Schauffele Defends the Frayed PGA Flag Amidst DeChambeau’s Charge And Claims First Major Title
Despite the off-course drama surrounding the PGA Championship, Xander Schauffele emerged victorious, claiming his long-awaited first major title.
In a thrilling final round, Schauffele started strong with a birdie on the first hole. While his playing partner Collin Morikawa wasn't a major threat, Bryson DeChambeau mounted a serious challenge. DeChambeau closed the gap to one shot with birdies on his first six holes and reached the turn at 32-under. Victor Hovland also joined the chase, matching DeChambeau's score with back-to-back birdies. Schauffele held his ground with birdies of his own, but DeChambeau tied him for the lead with a birdie on 13th. Schauffele responded with more birdies, reaching 20-under par. DeChambeau set the clubhouse target at 20-under with a final birdie putt, but Schauffele wasn't done. He drained a birdie putt on 18th to finish at a record-breaking 21-under par, securing his first major championship and etching his name in PGA history.
Schauffele's victory was a significant moment in his career. Coming off a near miss at the Wells Fargo and his first win since the 2022 Genesis Scottish Open, this PGA Championship triumph propelled him past Rory McIlroy to the number two spot in the world rankings. With the U.S. Open and Open Championship looming, Schauffele emerged as a strong contender to add more major titles to his name.
"Winning, I said it earlier, is a result. This is awesome, it's super sweet, but when I break it down, I'm really proud of how I handled certain moments on the course today, different from the past."
Xander Schauffele
Nelly´s🥇on🥇Fire:🥇Sixth🥇Title🥇in🥇Seven Tournaments!!!
Nelly Korda returned to the winner’s circle at the Mizuho Americas Open at Liberty National, NY, capturing her sixth title in seven starts. Despite a challenging start with three bogeys and a solitary birdie in the front nine, Korda managed to reset and maintain her composure.
Trading birdies with Hannah Green and maintaining a tie for the lead, Korda demonstrated her mental resilience. Her victory was sealed on the last hole when Green found trouble off the tee. With this win, Korda’s 2024 win rate is an impressive 75%, joining an elite club of LPGA victors.
📱 T-Mobile Enhanced US PGA Championship With 5G Technology
Last week, Josh Carpenter reported in the Sports Business Journal that T-Mobile would be providing 5G capabilities across Valhalla Golf Club for the PGA Championship. T-Mobile and its agency partner, CAA, had formalized an agreement with the PGA of America and signed a four-year deal in November 2023. The PGA Championship was the first event to utilize T-Mobile’s 5G services, offering enhanced benefits for fans and media alike.
Chris Melus, T-Mobile for Business VP/Product Management, expressed his excitement about the potential of the technology on the course.
Fans who attended the event were able to utilize 5G onsite, and those watching on television also enjoyed enhanced viewing experiences thanks to 5G. T-Mobile’s 5G network provided the following experiences:
Enhanced Viewing of the 13th Hole
For the first time, 5G was used in a golf broadcast to cover the action from one of the most famous holes at Valhalla. CBS used 5G-connected cameras to provide new angles and cinema-like quality footage.
T5G Range Show
Viewing fans got closer to the action through their televisions and mobile devices. 5G technology-powered cameras provided enhanced access to the practice ground, where players honed their game and worked with their coaches on last-minute tweaks. Fans were also able to follow stats of how the best in the world work through their golf bags, with data such as apex height, ball speed, curve, and distance forming part of the stats package available. Expert commentary and analysis were available, helping fans better understand the process players go through on the practice range.
Club Magenta
Club Magenta served as a VIP Lounge where fans had the chance to meet and talk to T-Mobile ambassadors such as Tony Finau, Wyndham Clark, and Max Homa.
“Sports organizations typically come to T-Mobile to see if 5G can help them enhance operations, the fan experience, or the event broadcast, and we delivered all of the above and more at the PGA Championship,” said Callie Field, President, T-Mobile Business Group.
It wasn’t just the fans who had their viewing experiences enhanced by T-Mobile’s 5G capabilities. Media outlets also benefited.
5G cameras used on the course were wireless, eliminating the need for thousands of feet of cables and wires sprawling across the golf course.
The performance provided by 5G offered peak speeds throughout the day and didn’t strain under the weight of many users, meaning data could be received and transferred much quicker than at any other golf tournament. This was a major boost for all the media outlets covering the week’s events.
"We’re thrilled to introduce groundbreaking technology to one of golf’s most significant events through this partnership with T-Mobile. T-Mobile has paved the way for unprecedented innovation that will continue to thrill our fans. And this is just the beginning.”
Jeff Price, Chief Commercial Officer, PGA of America
📺 CBS Sport’s New Chair Berson Not Worried By Viewing Figures
Golf has been a tough sell for most fans this year. Viewing figures have been down across the board, and we are witnessing a deepening chasm between the PGA Tour and LIV and a a growing divide between what the fans want to see and what’s happening on the golf course.
CBS Sports’s new chair, David Berson, could view this as a potential nightmare, but as Sports Business Journal’s reported, Berson is not about to lose any sleep over the situation.
Berson was in the CBS booth close to the first tee at Valhalla Golf Club and noted:
“Everyone tends to overreact on a week-to-week basis, and there are so many factors on a week-to-week basis. What’s the weather? If it’s raining, more people are inside watching. Who’s on the leaderboard? How many strokes is the lead? You have to look at these things much bigger picture and longer term.”
While figures were poor for tournaments earlier in the season, CBS has seen increases in viewing audiences in two out of the last three PGA Tour events, which is one of the reasons why Berson feels confident the remainder of the season will be good:
“There’s no doubt the sport of golf is gaining a lot more fans, and people are playing (recreationally). Overall, the sport has a good trajectory. Are there issues going on now that the powers that be are trying to work through and we’re hopeful that there’s a solution in the near term? Yes. But I don’t want to get overly caught up in the narrative that the short-term ratings dips are telling a larger story about bigger concerns. I think we all have to just pause on a larger narrative here. It’s an interesting time in the game, but let’s give it time.”
Fitzpatrick Joins Arccos as Ambassador and Investor
As Reported in Golf Business News, 2022 U.S. Open Champion Matt Fitzpatrick has partnered with Arccos Golf, the official game tracker for the PGA Tour, as a tour ambassador and investor. Fitzpatrick, a strong advocate for data-driven improvement, began working with Edoardo Molinari’s analytics services, which evolved into Arccos Pro Insights. CEO Sal Syed sees Fitzpatrick’s involvement as a significant boost for product development and growth.
Arccos, the top-ranked tracker system with the largest on-course dataset, recently introduced Link Pro. This device allows players to record shots without using their phone, capturing up to twelve rounds of data before recharging. It’s a testament to Arccos’s commitment to innovation in the realm of golf analytics.
Rickie and Rocket Back Together
At the 2024 PGA Championship, fans noticed Rickie Fowler sporting the Rocket Mortgage logo on his sleeve, sparking speculation about a move to LIV. Fowler dismissed the rumors, reaffirming his commitment to the PGA Tour. His win at the Rocket Mortgage Classic marked a return to form, ending a four-year victory drought.
Our colleague Tony Paul, for The Detroit News reported on Fowler’s new deal with Rocket Mortgages, although the financials and length of the new deal are unknown. Fowler has been a brand ambassador for Rocket Mortgages since 2015 and has appeared in the company’s commercials and corporate day events.
📚 And to conclude, we thoroughly enjoyed reading…
Playing from the Rough: A Personal Journey through America's 100 Greatest Golf Courses, by Jimmie James. Published by Simon & Schuster, it is a compelling memoir that intertwines a love for golf with reflections on a journey from poverty to success. James’ quest to play America’s 100 greatest golf courses in a year highlights the stark contrast between his humble beginnings and the world of privilege he accessed. A must-read for golf enthusiasts and those inspired by personal triumphs. Available here from $14.99 (Kindle) or $27.89 (Hardcover).
Stay safe, folks, and have a good one!!!