"The entire sport of golf likely will be faced with a fork-in-the-road decision in charting its future."

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Jim Achenbach assesses the U.S. Open at Congressional and concludes that the "gulf" between regular golfers and the professionals has "grown dramatically" in recent years with the need for a resolution appearing more evident than ever.
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Today In Bad Golf Course Business News...

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J. Scott Trubey and Bill Torpy do a full autopsy on the Reynold's Plantation situation and its uncertain future.

“They were the Cadillac of development; they under-promised and over-delivered,” said state Rep. Mickey Channell, R-Greensboro, a 25-year Reynolds Plantation homeowner. “Based on their history, it was assumed they’d get through this.”

But the 3,600 Reynolds property owners soundly rejected Reynolds’ plan. After the vote, his business was placed into receivership, a move short of foreclosure. Now, a guardian is managing the Plantation and three other communities owned by Reynolds while the banks try to find a buyer or work out another deal with him. In all, 9,000 acres of his corporations’ property, about half its holdings, is held as collateral, is at stake.

And thanks to reader Del for Toby Tobin's analysis of Palm Coast golf courses dropping 71% in assessed value since 2008.

"All in all, it is only the latest twist in an unusual ride"

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In Doug Ferguson's story on Mark Steinberg leaving IMG, he writes:

Woods has a close relationship with Steinberg, a reserve on the Illinois basketball team that went to the Final Four in 1989. If he were to leave IMG and stay with Steinberg, it likely would not make much of a difference in his golf schedule or even his endorsements, as Steinberg did most of that work.

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Wally: "Companies that are going to be U.S. centric, they will be roadkill on tomorrow's scorecard."

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Mike Johnson posts a very interesting Q&A with Wally Uihlein following today's announced sale of Acushnet to Fila Korea. While his comments about globalization are interesting, what really stood out for me was his interest in the middle class of Korea. I get the sense that the demise of the American middle class must be making Wally wonder about the future of the business here.
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Acushnet Sale: Press Release And Knee Jerk Reactions, Vol. 1

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E. Michael Johnson has the details, the press release is below, and here are a few quick reactions:

- Golf publications and the Golf Channel will live to see another day if you believe the prognosticators who said a purchase by an "endemic" would have meant consolidation that might end entities that rely on ad buys from the industry. Same deal goes for touring professionals.

- Ten percenters across the land are rejoicing at the thought that Wally Uihlein is staying on as CEO (until he gets tired of commuting halfway around the world to meet his bosses), meaning he's not retiring to manage son Peter's career.

- Sadly, another win for the hedge funders. Not only does Bill Ackman force a sale, but they get lucky and sell to folks who appear---appear--to want the company because it is well-run, well-positioned and stable, not to pick up the golf ball brand and peddle the rest off.

- $1.23 billion is a higher number than many predicted and gives the golf business something to feel good about heading into the weekend. Okay, I'm reaching now.

I'm sure some of you will have different takes and are much more cynical than I when it comes to these press releases. Speaking of which, here's the release:

ACUSHNET COMPANY TO BE ACQUIRED BY GROUP LED BY FILA KOREA LTD. AND MIRAE ASSET PRIVATE EQUITY

Agreement Reached for World's Leading Golf Equipment Company to be Purchased from Fortune Brands

Fairhaven, MA (May 20, 2011) – Acushnet Company announced today that its parent company, Fortune Brands, Inc., has signed a definitive agreement for the sale of the company to a group led by Fila Korea, Ltd., the owner of the Fila brand globally, and Mirae Asset Private Equity, the largest private equity firm in Korea.

Acushnet Company is one of the largest golf equipment companies in the world with annual sales of more than $1.2 billion in 2010.  Its premium and storied brands include Titleist, the #1 ball in golf and a leader in high performance golf clubs, and FootJoy, the #1 shoe, glove and performance outerwear brand in golf.

“The Acushnet Company has long been the trusted steward of two of golf’s most revered and iconic brands, and has perpetuated the longest running records of golf equipment success in the game,” said Wally Uihlein, Chairman and Chief Executive Officer, Acushnet Company. “The Fila Korea and Mirae group understands and appreciates our golf industry leadership, passionate associates, and unique and enduring culture. Together, with our new owners, our team is looking forward to strengthening and building upon the global success of the Titleist and FootJoy brands.”

Right out of the press release manual! I smell a v-word coming.

After the acquisition, Acushnet will remain as a standalone company through separate operation from Fila Korea, with its worldwide headquarters remaining in Fairhaven, Mass., and led by Uihlein and Acushnet’s current management team.

The Acushnet Company has a history of successful growth and evolution. The Golf Division was founded in 1932, with the first Titleist golf ball brought to market in 1935. Fortune Brands acquired the Acushnet Company in 1976, and Acushnet acquired FootJoy in 1985. Acushnet’s net sales in 1975 were $51 million and with the combined strength of both brands have grown more than twenty-fold over the past thirty-five years.

No v-word, just a plug for Titleist's and Footjoy's that I had to delete.

“We appreciate what Fortune Brands has contributed to the growth of our business over the last thirty-five years,” said Uihlein. “The support, encouragement and guidance they provided helped fuel our leadership position in the industry and marketplace.  Together, we achieved record-setting milestones.”

No love for Bill Ackman for forcing this sale so that he can repave his helicopter pad with gold?

Established in Italy in 1911, Fila is a leading sport and leisure footwear and apparel brand that is distributed worldwide. The group, led by Fila Korea and Mirae, also includes the National Pension Service of Korea, the fourth largest pension fund in the world, and Korea Development Bank, Korea’s largest government-owned bank.

“The acquisition of Acushnet transforms our platform with a stable of premier world class brands,” said Gene Yoon, Chairman and Chief Executive Officer, Fila Korea, Ltd. “We are equally excited to embrace Acushnet’s exceptional management team led by Wally Uihlein. With our extensive knowledge and reach in Asia, we believe that the Acushnet brands have incredible new opportunities for growth in the emerging markets in Asia.”

“We are very impressed with what Acushnet management and employees have accomplished so far,” said JH Ryu, CEO, Mirae Asset Private Equity. “We will fully support the company to remain focused on its core golf expertise and continue driving the growth of the industry.”

"Titleist and FootJoy are powerful global golf brands,” said Uihlein. “The fact that Asia Pacific represents over 30% of the world's total golf equipment spending, and that South Korean golfers are among the most passionate and organized in the game, is testament to the significant investment in the Acushnet Company by the Fila Korea and Mirae group. They recognize the strength of the brands and opportunities for growth particularly in golf's emerging regions.”

The sale is subject to certain closing conditions, including regulatory approvals, and the transaction is expected to close this summer.

Shark Likely To Have Another Course Bulldozed

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The Paulson banktruptcy filing on Doral includes the revelation that the group is not including the Great White course as part of the package, according to this Bloomberg story. This raised a few eyebrows until Douglas Hanks and David Neal explained that they want to develop Norman's Miami masterpiece.

The owners of the Doral resort want to spin-off one of its five golf courses for residential or commercial development, according to court filings.

The move to separate the Doral’s “Great White’’ course — named after designer Greg Norman — probably would not impact the resort’s annual PGA golf tournament, which is played on the famous “Blue Monster.’

Members Buy Colorado Golf Club

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Howard Pankratz reports on good news for the Coore-Crenshaw designed home of the 2013 Solheim Cup and a course thought to have been a PGA Championship contender despite having a non-Rees Jones design and August temperatures potentially under 94 degrees.

Colorado Golf Club said "the acquisition marks a new beginning for the club".

Ferrell said the transaction was completed after months of negotiations and cooperation between the membership and other parties - including the original developers, lenders, creditors and New York real estate investor Arendale Holdings.

"I've never seen a more multi-faceted deal," said Ferrell, who has been in the golf business more than two decades. "It is remarkable all the players could make this happen."

Cool Nike Commercial During Derby

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I was mostly to nervous for my man Shackleford to notice the pre-race commercials, but it was hard not to be glued to one that ran during the Kentucky Derby and turned out to be for...Nike golf balls!

Pretty impressive piece of work here, with some golf course damage thrown in. Anyone know what course this is? Looks like something Northern California.