Rapid-Expanding PGA Tour Superstores Moving Into Vacated Retail, Claim Better Attendance Than Tournaments!

As the retail sector struggles and my distant relative Geoffrey The Giraffe is retired, the burgeoning PGA Tour Superstore chain is actually looking to expand, including into old Toys R Us locations.

Thanks to reader FS for Brent Schrotenboer's USA Today feature on the appeal of the stores and their amazing foot traffic owed in part to having an indoor range experience.

Since 2011, the chain has more than tripled in locations, from nine to 32 now. It plans to open around five more this year alone and hopes to increase to 50 locations by the end of 2020.

The chain’s CEO, Dick Sullivan, even told USA TODAY Sports that he’s been scouting several old Toys R Us and Babies R Us locations that are up for auction after Toys R Us filed for bankruptcy last year.

“There are hundreds of them out there that are available and the perfect size for us, usually around 37,000 square feet,” Sullivan said.

This number on foot traffic, attributable to the ability to rent a range stall, get fit or take lessons, is rather amazing given where retail is going.

The PGA Tour is a minority owner of the chain and has a 50-year license with it that expires in 2060. About 7.5 million customers visited the Superstore in the last year, Sullivan said, exceeding the attendance at Tour events.

Taylor Made CEO: "We stand with Titleist."

It's fascinating on several fronts to hear that the CEO of Taylor Made is anti-bifurcation, oddly joining him with Titleist and...by the people he's imploring not to bifurcate: the anti-bifurcation USGA and R&A.

The potential for splitting the rules or playing tour-only specs prompted Taylor Made's David Abeles to issue a statement both reinforcing the importance of the rules while declaring that they should not change. 

"The TaylorMade Golf Company opposes any potential roll back of product performance or bifurcation of the rules in any form as we believe these movements will be detrimental to the game at every level," Abeles said. "Any separation from the rules or any step backward in performance would be disadvantageous to the growth of the game."

The full statement:

.@TaylorMadeGolf releases a statement from its CEO, David Abeles, regarding the USGA Distance Report.

“TaylorMade firmly opposes any potential roll back of product performance or bifurcation of the rules in any form…" pic.twitter.com/ueuc6QYNN5

— David Dusek (@Golfweek_Dusek) March 13, 2018

Titleist Rebuttal To The Governing Bodies: Distance Is Flat

It's always a fascinating thing to watch a company advertising more distance and then arguing against distance gains taking place. But I digress...

Noteworthy here is the CEO of Titleist making a more restrained argument than the PGA Tour Commissioner, and even a less misleading case than the PGA of America CEO in communicating his organization's likely stance on something not even proposed by the USGA and R&A.

Wacky days!

For Immediate Release...and again, revel in the even-keeled tone used by Acushnet CEO David Maher, a nice change from Wally Uihlein's alarmest rhetoric. I don't agree with his points but Maher presents his rebuttal in a way suggesting he would be a productive voice at any distance discussions. 

Distance Study 2017: Equipment Regulations Remain Effective 

FAIRHAVEN, Mass. (March 5, 2018) – As a proud stakeholder in the game, Acushnet Company is deeply committed to golf’s future health. Following today's publication of the 2017 Distance Report by the USGA and The R&A, it is important to ensure this topic is considered with balance and through a wide lens. 

"As a leader in the golf equipment industry, our team is conditioned to evaluate data to best understand contributing factors and root causes," said David Maher, CEO and President of Acushnet Company. "It is with this intent that we analyzed the 2017 Distance Report, and our findings continue to support the fact that equipment regulations have been effective. 

“A closer look into the numbers in the Report underscores the complexity of making any meaningful year-to-year comparisons,” continued Maher. “There were several contributing variables in 2017, including course selection and set-up, agronomical conditions and weather, which need to be considered when assessing the data." 

It's only been sixteen years since the Joint Statement. Twenty years before jumping to conclusions?

Below is a sampling of key findings from our research that impacted distance results in 2017: 

• At the 33 PGA Tour events conducted at the same venue in 2016 and 2017, where data was collected, the average driving distance increased +0.5 yards. At the eight events held at new venues in 2017, the average distance increased +8.0 yards. 

Imagine if there had not been a new Pro V1 flying new distances (as advertised) in 2017, there might have even been a dip in distance!

Oh, and about those major courses where the driving distances were longer: the driver was freely and regularly used at Erin Hills and Quail Hollow. Not much lay-up in those two courses. Last I heard, the golf ball, when hit with driver, goes longer than with a three-wood or iron.  

• Of these 33 PGA Tour events conducted at the same venue, 15 tournaments had a decline in average driving distance with one event flat to prior year. This highlights the year to year variability in distance. 

Don't make anything of those charts over many years where the lines start low on the left and rise to a higher spot on the right.

• The major championships conducted at new venues represented one-third of the total average driving distance gained in 2017: U.S. Open (Erin Hills vs. Oakmont +20.4 yards), Open Championship (Royal Birkdale vs. Royal Troon +8.1 yards) and PGA Championship (Quail Hollow vs. Baltusrol +7.0 yards). 

It's amazing what happens when a field of top players are free to hit driver off the tee instead of finding their play restricted by pinched landing areas.

  • The 2017 Masters average driving distance declined -0.4 yards. 

Take away the grainy fairway cut pushed down toward the tee and we'd actually get to see agronomy play a roll in distance averages. 

• Of the 25 Web.com graduates in 2016, 24 had shorter average driving distance on the 2017 PGA Tour, with an average decrease of -6.6 yards.  For the years 2015 to 2017, 74 of the 75 graduates had shorter average driving distance on the PGA Tour the following year. This can be attributed to course set-up. 

Yes, course setup may certainly play a roll in reducing the number of times players hit driver. 

“In any given year there are variables that impact distance, and any movement as in 2017 is not suddenly indicative of a harmful trend,” said Maher.

He's not wrong about 2017. It started long ago. 

“We continue to believe equipment innovation has benefitted golfers at all levels, and our analysis of the 2017 Distance Report affirms that the USGA and The R&A have effective regulations in place to ensure the game’s health and sustainability. We look forward to continued dialogue with the governing bodies and stakeholders as we seek to position the great game of golf for future success.” 

Wally, Wally, Wally...not even a technophobic media reference! You sure you picked the right guy?

The State And Future Of Arizona's Golf Industry

The Arizona Republic's Russ Wiles uses the Waste Management Open as a reason to consider the state of Arizona's $3.9 billion golf industry. The story is lengthy and contains some very good info if you're in the industry (thanks reader John for the link).

The questions and answers posed by Wiles are many of the same you've heard by now: things aren't too bad right now and even encouraging where facilities have made some adjustments, but the industry certainly isn't growing and the all-important M's don't want to participate in something taking four-five hours.

Nearly two-thirds of active players are 40 or older.

Participation among minors "has been declining for several years, as younger generations opt to play other sports or engage in other activities," said IBISWorld.

Also, it takes a lot of time to play golf well — not just in spending what can easily be five-plus hours for a round of 18 holes, but in the years of practice it takes to become reasonably skilled.

"As an industry, we need to find ways to have a one- or two-hour experience," said Gurnow. That's in addition to other ways the industry might appeal to newcomers.

This was interesting and a huge issue on the jobs front if the only answer is another TopGolf (not that there's anything wrong with TopGolf!).

Labor tops the list on the expense side, including for clubhouse/golf-shop staff and course-maintenance workers. Water and other utility costs were next,then course-maintenance supplies/services, general-administrative expenses and food/beverage outlays.

The highest number of Arizona golf-course jobs are in course maintenance — estimated at 5,000 positions in the 2014 report, followed by food/beverage workers (2,300), golf-shop personnel (1,780) and administrative staff (1,040).

Why? The NGF's Inaugural List Of Golf's 100 Best

I'm not sure I'm buying Erik Matuszewski's explanation for the National Golf Foundation's new list highlighting 100 companies, but I'll give the Forbes--yes that Forbes--writer the benefit of the doubt since I can't think of any other reason the NGF needs to get in the rankings business.

But the scope of the overall golf economy – a $70 billion business -- runs far deeper.

It’s why the National Golf Foundation has released its inaugural list celebrating the top 100 businesses in golf, a platform that in some ways is the golf biz equivalent of the popular top 100 course rankings. The NGF GOLF 100 was created by the NGF to recognize the most successful, innovative and influential companies and organizations in the game, across a wide variety of categories.

2017: Year "Ultra-Premium" Became Part Of The Golf Industry

In David Dusek's year-end equipment industry wrap for Golfweek, he considers the role PXG and other influences have had in convincing golfers to buy more expensive equipment.

Dusek writes:

“PXG has livened the ultra-premium market again, and all the other guys are (upset) because that used to be their golfers,” said Tom Olsavsky, Cobra’s vice president of research and development. “So now they are saying, ‘We can do that as good as (PXG) can,’ and we’re seeing them offer expensive irons and expensive drivers. Fifteen years ago that was the after-market business, and they made tons of money because it was a better product and people were willing to pay for it.”

In 2017, Callaway released the Epic and Epic Pro irons priced at $2,000 for an eight-club set, as well as the Epic Star driver, which retails for $700 and was previously available only in Japan. Xxio brought the $850 Prime driver to the U.S. market and said there was plenty of demand for it, while Titleist re-released the C16 iron set for $2,700 and debuted the J.P. Harrington line of custom-fit wedges for $500 each.

It will be interesting to see if 2018 brings more of these clubs into the bags of professionals and what impact that has on in the industry. So far PXG is the only brand to have players using these ultra-premium clubs, but could we see the others start having players adopt the pricey stuff?

Wally Uihlein Shifts To The Get-Off-My-Lawn Phase Of His Career: USGA Has No Evidence Of Escalating Costs

In a letter to the editor, Acushnet CEO Wally Uihlein railed against the USGA claims of cost increases in golf due to distance advances. Be careful what you wish for Wally!

Dylan Dethier at Golf.com reports on the response to Brian Costa's story Saturday.

"Is there any evidence to support this canard…the trickle down cost argument?” Uihlein wrote. “Where is the evidence to support the argument that golf course operating costs nationwide are being escalated due to advances in equipment technology?"

Let's see, off the top of my head there are studies underway on multiple fronts, golf course operators who can point to increased insurance costs due to safety issues and the simple common sense wave realizing the absurdity of an expanding footprint.

"The only people that seem to be grappling with advances in technology and physical fitness are the short-sighted golf course developers and the supporting golf course architectural community who built too many golf courses where the notion of a 'championship golf course' was brought on line primarily to sell real estate," he wrote.

Easy there Wally, short-sighted developers sell golf balls too.

And his jab at Bridgestone did not note the irony of his letter's intent, which would be a similar commercial motive, no?

"Given Bridgestone’s very small worldwide market share and paltry presence in professional golf, it would seem logical they would have a commercial motive making the case for a reduced distance golf ball," Uihlein wrote.

BTW watched this the other night and really is a special film. Warning, bad language! Racially insensitive comments!

Update on 2017-11-21 05:15 by Geoff

**Thanks to reader JB for Brian Costa's follow up on Uihlein's reply, which ran under a headline titled, "Titleist CEO Blasts Push for Reduced-Distance Golf Ball" and subheadline, "Wally Uihlein issues forceful rebuttal against USGA plan to explore creating different sets of ball regulations for different players."

Bridgestone CEO: Standardize The Ball For Pros

We'll ignore all of the business motives momentarily and just take in the first-ever CEO suggestion of a tournament ball in golf.

The comment came during a Golf.com interview with Ryan Asselta where Bridgestone CEO Angel Ilagan said the time has come.

"As it relates to the Tour...there needs to be something to standardize [the ball] because the guys are hitting it way too long," Ilagen says.

This marks the first time the chief executive of a ball company has called for a dialed-back ball. 

And he offered this:

"I think there is an option to have a ball that is played on Tour, and a ball that is played casually," he said, adding that he gives a standardized ball a 50-50 chance of appearing on Tour in the near future.

There is the very reason possibility Bridgestone has made such a ball, perhaps even for the governing bodies to use in their studies and that it could be the basis for a competition ball concept.

That said, the standardized ball concept mentioned by Ilagan would not be relegated to one manufacturer, meaning brands with more market share and golfer loyalty would still be likely leaders in what sales there are for such a ball.

Lawsuit Alleged Sexual Harassment At Bandon Dunes, Kemper

Bandon Dunes and parent company, KemperSports, are center of sexual harassment lawsuit reported on by Sara Roth of NBC's affiliate station in Portland, KGW.

The case centers around Bandon Dunes GM Hank Hickox, who was quoted in 2015 praising the woman who ultimately filed the suit after she was named hospitality professional of the year.

Roth writes:

Court documents show the allegations aren’t just limited to the golf club in Bandon, Oregon. Two employees claim the alleged misconduct has been pervasive for years at the corporate office. Top executives are accused by the lawsuit of not only condoning the behavior but also participating in sexually inappropriate conduct themselves

The video report:

Kemper's spokesman, in a story by Golf.com's Sean Zak, says the Bandon suit has been withdrawn but would not say it had been settled.

In a statement to GOLF.com, KemperSports' director of communications B.R. Koehnemann, wrote, "The article that was written yesterday refers to a case that has been withdrawn. On Friday, November 10, 2017, Ms. Hamblin acted to dismiss the lawsuit. The court was informed and the case was removed from the docket. When informed of the alleged inappropriate behavior at Bandon Dunes, the Company took decisive remedial action, and Mr. Hickox is no longer employed by KemperSports or Bandon Dunes. Independent outside counsel has been retained to further investigate the situation."

John Strege at GolfDigest.com also reviewed the story and contacted Kemper President Josh Lesnik, the subject of allegations in the lawsuit and reported on by Roth. When company failed to properly address Darla Hamblin's complaint, she soon learned from another employee of purported misconduct at KemperSports and the alleged company culture became part of the case.

“An incident did occur at Bandon Dunes." Lesnik said in a statement. "We handled it appropriately and effectively. Hank no longer works for us, and the staffer acted to dismiss the lawsuit. Any allegations about me are false, and our Board of Directors has launched an investigation that will find the truth.”

Bloomberg: Golf Course Deduction Currently Safe But Facing Increased Scrutiny In Trump Era

As Republican tax reformers are eliminating many write-offs, the current House version of a new tax bill currently includes the long-controversial deductions for golf course owners promising never to develop their land. While the "loophole" has come close to being closed, it's getting new attention with President Donald Trump's ownership of golf courses using the deduction in ways that contradict the spirit of the law.

Dan Wilchins and Prashant Gopal, reporting for Bloomberg, present a balanced picture, including the important counterpoint to arguments for eliminating the deduction and the relatively small amount of revenue that would be generated by closing the loophole.

In some cases, the tax benefit can make sense. There are communities where golf courses are some of the only open space available. Without the easements, an owner might be tempted to sell out to the highest bidder, which might develop housing on the space, said Sylvia Bates, director of standards and educational services at the Land Trust Alliance, a conservation group.

But in practice, the deductions that land owners take for golf courses are enormous compared with the conservation value, said Ruth Madrigal, a tax lawyer who worked on conservation easements for the U.S. Treasury department during the Obama administration. A developer can build homes and a nearby golf course, get a conservation easement on the links and claim a deduction that can pay for the entire development, she said.

They're Back...Sort Of, The Costco Kirkland Is Back In Some Form

Thanks to all who sent the GolfWRX post identifying the latest Costco "Kirkland" ball to be offered for sale, just as the CEO promised in January. The original drew great attention and reviews and after selling out, has become a much-demanded cult classic.

While they are billing it as the same ball with "Hot List" branding, the current iteration is only for sale to Costco members, with a 2-order-per-membership limit and no certainty the latest ball is the same as the last (given that it was likely a one-off production run of old Taylor Made cores).

Nonetheless, it spices up discussions about the ball, adds more intrigue to the lawsuits and whether this is a legitimate contender in the golf ball market, as some originals proved to be, or just an occasional stunt.

Here they are Costco members...