Callaway Buys Travis Matthew

The tentative $125.5 million deal was announced on today's earnings call, where, as Claudia Assis reports the company announced a 24% increase in net sales.

The full Travis Matthew purchase release:

CALLAWAY GOLF COMPANY TO ACQUIRE TRAVISMATHEW FOR $125.5 MILLION

CARLSBAD, Calif., August 3, 2017 – Callaway Golf Company (NYSE:ELY) announced today it has entered into a definitive agreement to acquire TravisMathew, LLC, a high-growth golf and lifestyle apparel company, for $125.5 million in an all-cash transaction, subject to a working capital adjustment.

“We are very excited about this acquisition,” commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. “With its golf heritage, culture of product excellence and double-digit growth in the golf and lifestyle apparel business, TravisMathew is a great fit with our business, brands, culture and our strategy to grow in areas tangential to golf. This acquisition, once completed, is expected to be slightly accretive to earnings in 2018 and create significant value for our shareholders over the long-term. We look forward to working with the TravisMathew management team to maximize this brand’s growth potential.”

The acquisition is subject to customary closing conditions, including securing regulatory approvals, and is expected to close in the third quarter of 2017. Post-acquisition, TravisMathew will continue to operate out of its Huntington Beach, California headquarters.

The purchase price values TravisMathew at a multiple of approximately 11.8 times projected 2017 full year adjusted EBITDA. Callaway also expects to realize significant value from potential tax benefits associated with the transaction.

In 2017, TravisMathew’s net sales are expected to be in the range of $55-60 million, of which approximately $10-15 million will contribute to Callaway’s 2017 second half financial results assuming the transaction closes in the third quarter of 2017. Including approximately $5 million of estimated transaction expenses and incremental non-cash expense resulting from the acquisition purchase accounting adjustments, TravisMathew is expected to be approximately $0.04 dilutive to Callaway’s 2017 earnings per share but is expected to be slightly accretive in 2018 after taking into account anticipated financing costs and incremental investment in the business to support future growth

Sand Valley Update And Photos From GolfAdvisor

Jason Scott Deegan provides a short update and links to past GolfAdvisor.com coverage, but it's the updated images and word of ice cream sandwiches that will excite those considering an eventual trip to the burgeoning Bandon of the Midwest.

He writes:

Sand Valley, spearheaded by Mike Keiser Jr., skipped infancy and is already in its teenage years, maturing quickly with changes ongoing. When I visited in July, construction crews were finishing up the rooms in the Clubhouse Lodge below mine (there are 17 total here). More expensive and spacious accommodations are available in the Lake Leopold Lodge and Fairway Lodge. A 12-bedroom lodge on the short course will open next year.

Golfers have three great dining options - on the Warbler Terrance adjacent to a fire pit and large putting green, indoors at the Mammoth Bar & Lounge and at Craig's Porch, a snack/lunch shack near the first tee and 18th green of the Coore/Crenshaw course a short shuttle ride away from the main hub of the resort. The nine different flavors of ice cream sandwiches are already legendary.

Spieth Finding No Negatives In Grand Slam Quest, Says He's Hit Worse Tee Shots Than Birkdale's 13th

Dave Shedloski with a fun GolfDigest.com account of Jordan Spieth's pre-WGC Bridgestone thoughts. It's rather apparent the possibility of a career Grand Slam is not weighing on him as much as clearing the air on that 13th hole tee shot at Birkdale.

"I'm not really finding any negatives in this. I've been asked this a few times, and I mean this. … It’s just a major. I say that, they are still the four events that we try to peak and think most about at the beginning of every year. But this PGA, if I'm healthy and playing well, I play in 30 of them, I believe I'll have plenty of chances to win them, but it doesn't have to be this year. If it's this year and it happens, that's great, that's another life-long goal that we've then achieved. But I believe that I'll do it someday, so if it happens in two weeks or next week, then fantastic, and if it doesn't, then it's not going to be a big-time bummer whatsoever because I know I have plenty of opportunities.”

As for the pretty awful tee shot at Birkdale that got worse when it hit some poor person in the head and headed east of a dune prompting a 20-minute pause in the action?

Spieth now says the hideousness of the shot has been blown out of proportion. He's hit worse. Ron Green Jr. writing for Global Golf Post.

“I missed my right side of the fairway by 20 yards-ish and it hit the guy in the head and then went over the next mound. So essentially it was 20 yards offline. I hit balls further offline than that on a regular basis, but where it ended up and what it looked like compared to the fairway for viewership was way offline.  

“It really wasn’t that bad. I mean, it wasn’t a good shot. It was a foul ball to the right, but I need to back myself up here in saying that I’m capable of hitting worse shots than that, OK?”

He also discussed watching the final round with caddie Michael Greller. 

Trump Worries Scottish Independence Could End The British Open's Days In Scotland

Now giggle all you want, but this actually raises a few key points in the Brexit/Scottish Independence/branding-the-British-Open-as-The-Open world we live in.

The July 25th comments of President Donald Trump to WSJ editor-in-chief Gerard Baker in the Oval Office that were not to be leaked by the WSJ staff, only to be leaked by the WSJ staff to Politico:

WSJ: You tweeted this morning about trade talks with Britain.
TRUMP: Yes.
WSJ: Can you tell us more about what’s going on?
TRUMP: No, but I can say that we’re going to be very involved with the U.K. I mean, you don’t hear the word Britain anymore. It’s very interesting. It’s like, nope.
WSJ: I work with a Brit.
BAKER: I’m English. We always make that point. You’re right, yeah.
TRUMP: Is Scotland going to go for the vote, by the way? You don’t see it. It would be terrible. They just went through hell.
BAKER: (Inaudible) – but they’re going to be –
TRUMP: They just went through hell.
BAKER: Besides, the first minister’s already made it clear she –
TRUMP: What do you think? You don’t think so, right?
BAKER: I don’t.
TRUMP: One little thing, what would they do with the British Open if they ever got out? They’d no longer have the British Open.

Priorities! Or, was the owner of a Scottish venue thinking of Trump Turnberry's spot in the Open rota? Anyway...

BAKER: [naudible.]
TRUMP: Scotland. Keep it in Scotland.
BAKER: We just had a – (inaudible).
TRUMP: By the way, are you a member there?
BAKER: No. I’ve played there, but I –
TRUMP: I thought that course showed well.
WSJ: It’s a gorgeous, gorgeous course.

Attention Royal Birkdale members: you have a blurb from the President who rarely dishes out such compliments to courses he does not own.

The two went on to discuss Jordan Spieth's win.

But this raises a few points both legitimate and humorous.

If Brexit goes forward and leads to Scotland trying again to break free from the rest of the United Kingdom, how would this impact The Open? They're already paying the purse in dollars, perhaps to avoid a Pound v. Euro battle?

And while it is the British Open to folks of a certain vintage, we do know The Open was started in Scotland, is governed by a Scotland-based organization, and could easily survive quite with only Scottish links if need be.

But I'm not going to be the one to tell the President this.

Romo Hit With Slow Play Penalty En Route To Western Cut Miss

Former Cowboys QB and scratch golfer Tony Romo struggled in his Western Amateur debut, but the future CBS football analyst did struggle to keep pace, writes the Chicago Tribune's Teddy Greenstein.

Romo beat only two of the 155 players who completed 36 holes, and he was assessed a one-stroke penalty Wednesday for slow play.

"He was very gracious about it," Western Golf Association tournament chief Vince Pellegrino said. "His group fell behind and missed two checkpoints. The others in the group did not receive a penalty. They made an effort to close the gap. Tony readily accepted it."

The WGA invited Romo to draw more eyes to the event and highlight the outstanding play of amateurs such as Florida State's John Pak, who shot a competitive course-record 63 on Wednesday, and Illinois' Nick Hardy.

Rory Didn't "Sack" His Looper..."Changed My Path"

For once I admire someone leaning on euphemisms and jargon to defend a decision, because it's pretty clear from reading Steve DiMeglio's USA Today account that Rory McIlroy didn't feel good about firing longtime caddie J.P. Fitzgerald midseason.

From the story:

“There’s nothing to say that J.P. mightn’t work for me again at some point, but right now I just felt like I needed a little bit of a change,” McIlroy said. “I hate the term fired or sacked or axed, because that’s definitely not what it was. I just changed my path a little bit, but maybe in the future that path might come back to where it was. Right now I just needed to mix things up a little bit, and J.P. understood that and we’re still all good.”

Time will tell if, during a season he's mixed things up so much already, this was the right call.

Karen Crouse of the New York Times notes something that suggest McIlroy could be forcing himself into a different level of engagement that either works or backfires.

Last week, two days after finishing in a tie for fourth at the British Open, McIlroy parted with the caddie J. P. Fitzgerald. In their nine years together, Fitzgerald had shepherded McIlroy to four major championships and the top of the world rankings.

For at least the next two weeks, Diamond, a Northern Irishman who had a decorated amateur career, will carry McIlroy’s clubs while McIlroy bears the burden of determining the yardages and choosing his clubs — and living with the decisions.

“I’ve enjoyed the last couple of days of carrying a yardage book, doing my own numbers, pacing stuff out, really getting into the shot, something I haven’t done for a few years,” McIlroy said.

DVR Alert: Trevino & Nicklaus In 1974 PGA At Tanglewood

As the PGA Championship returns to North Carolina for the first time in 33 years and just its third playing in the state, Golf's Greatest Rounds airs a 1974 final round rebroadcast.

Hugh Quinn filed this excellent primer three years ago on the 40th anniversary of Tanglewood's big moment.

Golf Channel airs the 2.5 hour show at 8:30 pm ET.

A preview:

Steph Curry After Practice Round: "My head was spinning"

His odds of winning stink but the point of Steph Curry receiving a sponsor's invite to play the Ellie Mae Classic this week has little to do with winning.

Instead, for anyone sports fan, there is the incredible intrigue of seeing how one of the top three basketball players on the planet pursues his passion for golf against future PGA Tour pros on the Web.com Tour. Unfortunately, with too much golf on the schedule this week and the Web.com playing a traditional Thursday-Sunday tournament, we'll have to rely on Golf Central and social media for reports.

Either way, maybe seeing Curry discuss what he picked up during the practice round and his admiration for Nick Rousey that will help ease the pain for those grieving at the loss of a field spot and the child starvation that will inevitably ensue.

“Hickory makes it like a game again..."

Finally catching up here on long reads and not surprisingly as a lover of hickories I thoroughly enjoyed Curt Sampson's Golf World story on the Americans traveling to Scotland for the Hickory Grail and Scottish Hickory Championship.

Maybe it's not quite Darwin playing the Walker Cup at The National Golf Links in 1922, but Sampson is an embedded contestant and does a fine job capturing the spirit of the trip along with the joys of hickory golf.

This band includes many recovering hickory players.

“December 2014,” said Mark Wehring, a Houston-based corporate compliance officer, and the best player among the American contingent.

Those weren’t dates of last drinks. Both Deinlein and Wehring had Tennent’s ale in their recent past and near future. They were instead the month and year they’d last hit a ball with what Ingvar Ritzen of Stockholm disparaged as “hollow clubs” (Ritzen joined the woodmen in 2011). Why, oh why, I asked, are you—all of us—making a hard game harder? Some pointed out recent offenses: the preposterous sight of a player looking at a topo map instead of the ground before a putt. How 460cc drivers obliterate the traditional size ratio of clubhead to ball. No matter how much bodacious Brooks Koepka’s biceps bulge, when an average drive in the U.S. Open is 392 yards, or whatever it was, something ain’t right. It’s time to turn back the clock, the uber-traditionalists agreed, to remember why the ancient Scots picked up a club in the first place.

“Hickory makes it like a game again,” said Carolyn Kirk, of Ganton, England, the lone woman on either Hickory Grail team. “You do it all by eye, you bump it in. You get huge pleasure when you hit a good shot and when you don’t, well, it’s a hard game anyway.”

Tiger's People: "Tiger is not in partnership with Mr. Trump or his organization and stating otherwise is absolutely wrong."

As reported by Alan Shipnuck in a lengthy Sports Illustrated look at President Donald Trump's connections to golf, a purported comment to Bedminster members--"The White House is a real dump"--has been picked up by AP and many other news agencies.

More interesting of the many anecdotes and backstories is the distance Tiger's camp wants to have from the President. Damac Properties has commissioned Woods' design operation to do a course at Trump Dubai. 

Shipnuck writes:

The biggest name in golf is now linked to the President through the Trump World Golf Club Dubai, which is slated to open in 2018. "My father and Tiger have been friends for a long time," Eric Trump told Golf.com in a '16 interview. "They've been very, very close. When you combine Trump and Tiger, it's a match made in heaven." But in a statement to Golf.com, Woods's spokesman Glenn Greenspan wrote: "Tiger is not in partnership with Mr. Trump or his organization and stating otherwise is absolutely wrong. Tiger Woods Design's contract and obligation is to the developer, Damac Properties. Our association ends there. I can't put it any clearer than Tiger Woods Design does not have an agreement with Mr. Trump."

Deep breaths Glenn, he is, after all, President of the United States. Tiger played golf with him just last December!

And of course there are press releases.

Varner: "For only $100, I was able to purchase this junior membership to Gastonia."

Harold Varner took to The Players Tribune to lament that the golf media asks him a bit too often about his race and not enough about what helped him make the PGA Tour. Though Varner could use a few FedExCup points this week.

The Akron, Ohio born golfer is playing his first WGC Bridgestone this week--and throws out a mean first pitch--but it was a program from his childhood in Gastonia, North Carolina that he wants golf to hear about. Oh sure, he mentions The First Tee but he most appreciates the ability to go to a golf course and bang balls.

Now, you may be thinking these summer playing privileges cost some crazy amount of money — that only rich kids would be able to do something like this. I mean, it’s a good enough deal to think that. But this program wasn’t really expensive at all: For only $100, I was able to purchase this junior membership to Gastonia.

It completely subverted the argument that you need to be rich to play this sport. It made playing golf extremely affordable.

That meant the world to my family. I didn’t know it at the time, but this was an incredible deal, not only for what it did for me then, but also what it’s still doing for me now. Without Gastonia, I would’ve never learned to play golf, would’ve never earned a scholarship to East Carolina University, would’ve never made my way onto the PGA Tour, would’ve never won in Australia last December and would’ve never been in a position to help bring more kids into the game.

"Stephen Curry, the golfer: As comfortable on links as on court"

Steph Curry tees up in this week's Ellie May Classic, a Web.com Tour event and Ron Kroichick of the San Francisco Chronicle profiles the basketball stars' passion for golf.

Kroichick writes:

In competing against those players for the first time, Curry will climb into uncharted territory. This is completely different than his good-natured outings with famous friends, from former President Barack Obama and Michael Jordan to Tom Brady and Justin Timberlake.

Last month, during the American Century Championship, a celebrity tournament near South Lake Tahoe, Curry at various times played alongside Timberlake and NFL quarterbacks Aaron Rodgers and Tony Romo (since retired). Their rounds included several playful moments, such as Curry catching footballs thrown by Rodgers and Romo.

Beneath the frivolity, Curry took his golf seriously. He shot a final-round 68, the best score any player posted in the three-day event, and finished fourth in a field of 89.

ShackHouse 44: More Open Talk, Rules Messes, Rory's Latest Decision, Olympic Golf And Food!

And we didn't even get to Steph Curry playing the Web.com Tour this week. But there was plenty to kick around for House and I on this week's show. We hope you enjoy!

As always, you can subscribe on iTunes and or just refresh your device's podcast subscription page.

Here is The Ringer's show page.

Same deal with Soundcloud for the show, and Episode 44 is here to listen to right now. Or this new platform or wherever podcasts are streamed.

ShackHouse is brought to you by Callaway, and of course, the new Steelhead fairway woods along with Odyssey as well.

You Go! Creamer, Davis Monday Qualify For Women's British

Longtime readers know I have a soft spot for grizzled vets who enter qualifyings and an even softer spot for the ones who don't WD.

So it was great to see 53-year-old Laura Davies keeping her 37-straight Open Championship streak alive and Paula Creamer making it through for this week's Ricoh Women's British Open, reports GolfChannel.com's Randall Mell.

Creamer even liked the Castle Course where qualifying was played just down the street from Open host Kingsbarns.

After tying for 13th Sunday at the Aberdeen Asset Management Ladies Scottish Open, Creamer drove almost three hours to the Castle Course to cram some homework in before her early Monday morning round.

“It was a beautiful golf course,” Creamer said. “My caddie and I worked really hard, because it was the first time I had ever seen it. I teed off at 7:22, so I couldn’t do much preparation. After I played yesterday, I came out and hit some putts and walked the last three or four holes. It’s an awesome little gem.”

The Women's British Open is getting extensive Golf Channel coverage, 28 hours to be specific, with Rich Lerner and Judy Rankin hosting the proceedings.

Roundup: Rory Sacks J.P. Fitzgerald, Turning To Best Mate As Next Bagman?

Reuters' Andrew Both broke the news that Rory McIlroy was dumping his longtime luggage handler and sidekick of nine years, J.P. Fitzgerald.

As Derek Lawrenson notes in the Daily Mail, the sacking comes "just 11 days after crediting Fitzgerald with transforming his fortunes at The Open."

Coming on the eve of the WGC Bridgestone and a PGA Championship at a course where McIlroy won two Wells Fargo Championships with Fitzgerald, the news is surprising. Add in a year where McIlroy switched clubs mid-season to help finalize Taylor Made's sale, the timing is even more amazin

Oh, and let's not forget that Fitzgerald was credited with a pep talk that ignited a strong finish at The Open by...Rory McIlroy.  

James Corrigan in the Telegraph says the switch may have been prompted by a tenth hole strategic blunder at Birkdale, though of all the holes in golf to blame a caddie for mishandling, that would not have made my list.

However, two days later, McIlroy’s charge for a second Claret Jug was derailed when he took a double bogey on the 10th, courtesy of the wrong club selection off the tee. Again, the spotlight picked out Fitzgerald.

In the caddyshack, the development was not greeted with too much surprise. And do not expect an overload of sympathy either, and not just because Fitzgerald is estimated to have earned more than £8m in his employment with McIlroy.

“It was coming,” one caddie told Telegraph Sport. Fitzgerald’s meticulousness has been called into question by his peers, some of who believe the mistake at Birkdale was merely the latest error.

The British press has long blamed Fitzgerald for McIlroy's strategic blunders. But going off of McIlroy's handling of his equipment deals this year, especially the recent putter demo day debacle, it's hard to see how the caddie is to blame for bad decision-making when the client is very much his own captain.

According to Corrigan, McIlroy appears set on turning to wedding best man and entourage chairman and three-time winner of the best pen name award, Harry Diamond.

Diamond could even prove the permanent solution. A childhood friend who grew up in the same Belfast suburb of Holywood, Diamond is a fine player in his own right, having played with McIlroy in the Ulster youth team and going on to represent the Irish senior team.

And he has caddied for McIlroy before. When the then 16-year-old prodigy was invited to play in the Irish Open in 2005, it was Diamond who was on his bag. The pair are extremely close, with Diamond reportedly acting as best man at McIlroy’s wedding to Erica Stoll in April.

Brian Keogh at the Irish Golf Desk talks to Paul McGinley. The former Ryder Cup captain used to employ Fitzgerald and was surprised. Among his interesting comments:

“I don’t want to be critical of him and I haven’t spoken to him but going into the last major of the year, I’d agree that it’s surprising timing.

“I'm surprised that he’s made that decision going to a golf course where he has won twice with JP on the bag.

“Who knows what the reasons were.”