Tiger Moves Bridgestone's Needle, Will It Continue?

David Dusek looks at the attention Tiger Woods brought to the clubs he played in the Bahamas last week and in a strange twist, he might have brought more quality attention to those brands because he's not being paid by them. Will it continue when/if he signs with a company? After all, Nike probably couldn't sell a putter if they tried after Woods made clear he couldn't wait to put his old Scotty Cameron back in the bag.

From Dusek's Golfweek.com story, quoting Bridgestone's Corey Consuega:

Consuegra said that having staff Tour players such as Brandt Snedeker and Matt Kuchar is extremely valuable, but Woods’s use of a Bridgestone ball created an immediate impact. In fact, Consuegra said Bridgestone’s website received about the same amount of traffic last Monday through Friday that it did in the entire third quarter of this year (July-September), and most of those visitors were going to the Tour B330S page.

“It changes the way we can tell the consumers and the public how good we are in the golf ball category,” Consuegra said. “We get outspent by our biggest competitors, but (Woods is) one of the best players to ever play the game, period, and he could have selected any golf ball on the market today he wanted, and he chose to go with the B330S.”

Woods Switched Back To His Scotty The Day Nike Quit The Equipment Business

We know players make club switches to appease sponsors and face bag requirements. But most club companies ultimately trust a player to do what is best for their game if they are struggling. Tiger Woods has never been woeful on the greens. But before his layoff, he wasn't as good as he once was.

Given that Tiger Woods won 13 of 14 majors with his trusty Scotty Cameron Newport 2 putter, his response to a question about switching back to it today prompted an uncharacteristically blunt answer.

From Will Gray's full item on this fascinating insider issue.

“The day that we (Nike) were no longer a part of the hard goods side,” Woods said when asked when he put his old putter back into play.

Brandel Chamblee was asked about his expectations for the weekend but instead noted that Woods has moved into a unique place where he can pick whatever he wants in his bag. But the question may now linger: why didn't one of the greatest players of all time and richest golfers in history have the freedom to putt with his trusty flatstick?

Update on 2016-12-03 19:59 by Geoff

**Big first day ratings:

VIEWERSHIP: 782k viewers tuned into @GolfChannel Thurs RD 1 cvge of Hero World Challenge, +190% YOY & most-watched RD 1 since The Open

— Golf Channel PR (@GolfChannelPR) December 3, 2016

XXIO's $849 Driver, $2080 Irons...

Mike Stachura of GolfDigest.com has a first look at XXIO's first clubs and what is presumably the first PXG competitor for the super high-end club market.  

The clubs are essentially the Lexus of Cleveland/Srixon and are coming to the U.S. after making a splash in Japan.

And they aren't cheap.

Bloomberg: "To Make Golf Fun, Just Add a Nightclub"

Topgolf gets the Bloomberg treatment and while there have been many profiles of the indoor-golf-driving-range-hipster-21st-Century-bowling-alley, Ira Boudway's story features plenty of fresh anecdotes.

A couple of highlights, starting with this on how CEO Erik Anderson, founder of private equity fund WestRiver Group brought the idea stateside and made a key move: TV's in the hitting bays.

In 2009, Anderson and a group of U.S. investors bought Topgolf’s technology for an undisclosed fee and decided to overhaul the floor plan for future locations. They added a third level, tripling the size of each venue to 65,000 square feet; replaced the buckets with motion-sensing ball dispensers; and, in a key change, put TVs and lounges—effectively, the entire sports bar experience—at each bay. “We realized that this was really an integrated entertainment and sports experience,” Anderson says.

There was also this on the financing side...

In September the company lined up $275 million in financing to build 7 to 10 locations a year. (Each costs $20 million to $25 million to open.) “We think there’s room for 100 or so in the U.S. and an equal amount globally,” Anderson says, though other than the original locations, the company hasn’t yet opened any outside the U.S. Revenue last year was about $300 million; this year it will be about a half-billion dollars.

Repot: Dick's Sporting Goods Wins Golfsmith Bankruptcy Auction, Loves Golf Again!

By winning the Golfsmith auction, Jessica DiNapoli of Reuters says Dick's Sporting Goods will become the leading golf retailer based on number of stores (it may already be now).

Pending bankruptcy judge approval, DiNapoli says:

Dick's plans to keep open at least 30 Golfsmith stores and wind down the rest with liquidators from Hilco Global and Tiger Capital Group, the people said. It plans to keep about 500 of the company's employees.

Golfsmith had 109 stores in the United States at the time of its bankruptcy filing last month, and has been closing stores since then.

With the bid, Dick's, the largest U.S. sporting goods retailer, also won Golfsmith's intellectual property and inventory, the people added, asking not to be identified because the results of the auction are not yet public.

Mike Stachura of GolfDigest.com notes Dick's bullish attitude towards golf continues after the retailer gave indications that it saw golf as in "structural decline" and layed off its professional fitters not long after buying into Mark King and Adidas' Taylor Made vision of three new driver releases in one year.

Now, it looks like Dick's Sporting Goods, whose sporting goods store model is megasized but its Golf Galaxy brand model is a more conservative sized store, will be dictating a big part of golf's retail footprint going forward.

Boston Globe: Acushnet's IPO Next Week, Ticker Symbol GOLF

Dan Adams of the Boston Globe reports that Acushnet Holdings will be valued at $1.7 billion and is hoping to raise $435 million with the sale of 19.3 million shares. A whole bunch of people will get rich!

Adams writes:

The offering is expected to raise roughly $435 million with the sale of 19.3 million shares priced between $21 and $24. Previous investors, not the company, will reap the proceeds.

Thanks to a series of related transactions in advance of the offering, the majority of voting shares will go to Fila Korea Ltd., which has owned Acushnet since 2011.

The long awaited IPO may also accelerate the sale of Taylor Made and Golfsmith.

Update on 2016-10-18 03:23 by Geoff

**Steve Pike says this is the "most anticipated IPO since Callaway Golf Founder Ely Callaway took his company public in the early 1990s – a move that sparked a Wall Street run (with varied results) on golf equipment companies."

Bryson! Cobra Bringing Single Length Irons To Market

Mike Stachura reports for GolfDigest.com on Cobra bringing not one, but two same-length irons sets inspired by former U.S. Amateur champion Bryson DeChambeau's philosophy.

Will they actually work for players other than someone as skilled as Bryson?

DeChambeau deeply believes the single-length approach is the game’s new frontier, and Tom Olsavsky, Cobra’s chief of research and development, has made that belief a more palatable reality for the masses. Unlike DeChambeau’s approach, which requires oversized grips and an unorthodox, steep one-plane swing, the King F7 One and King Forged One Length are designed to simplify the game for average golfers by making every club the traditional length of a 7-iron.

“We see more consistency in both full swings and the short game,” Olsavsky says. “It’s one setup and one swing through the bag. And in our testing we see impacts closer to the center of the face much more often. One other benefit we see is more confidence.”

NY Times: "Nike Tosses Its Golf Clubs. (Shirts to Stay On.)"

Sam Borden of the New York Times went to East Lake trying to gauge the impact of Nike's equipment exodus and concludes a few things.

First though, there was this shrewd observation:

“The secret sauce in the equipment business that Nike didn’t have is that each of these companies that’s thriving comes from a core competency that they grew out of,” said Casey Alexander, a senior vice president at Compass Point Research & Trading, which has long tracked the golf industry. “Callaway still uses the Big Bertha name — that’s what people know them for. TaylorMade invented the metal-headed driver, and that’s still a huge part of what they do. Titleist has a core competency in golf balls. Ping has a history in cast-iron clubs. Nike just never broke through with something like that.”

Borden shared this compilation of observations that is of interest:

Several agents speculated that one (somewhat counterintuitive) ramification of Nike’s move out of the golf equipment business is that there will actually be more, not fewer, Nike swooshes on the golf course at top events.

In the past, the thinking goes, Nike could not attract some players it wanted to work with because many players believed Nike’s clubs were inferior. Now, Nike will be free to chase any player without demanding that the player use Nike’s clubs as well as wear its clothes.

We shall see!