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Kemper's spokesman, in a story by Golf.com's Sean Zak, says the Bandon suit has been withdrawn but would not say it had been settled.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of communications B.R. Koehnemann, wrote, "The article that was written yesterday refers to a case that has been withdrawn.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...

Bridgestone CEO: Tiger More Valuable As An Endorser Than He Is As A Player

Catherine Campo at CNBC summarizes Bridgestone CEO Angel Ilagan's assertion that Tiger "on board" is spurring growth for the game and Bridgestone.

More fascinating is Ilagan's assertion that Tiger is better endorsing than playing.

"He actually has more power as an endorser than he does as a player," the CEO said.

He added that Woods is "the Michael Jordan of golf" and "the single golfer who's had the greatest impact of bringing consumers into [the game]."

Ilagan's suggested that as long as Woods is around (on or off the green), the golf industry is safe.

"I think the industry is in a little bit of panic, although it really need not be," he added.

All of the delusional talk can be viewed here...

Bridgestone bets on Tiger from CNBC.

 

Acushnet Announces Retirement Of Wally Uihlein, Effective January 1, 2018

Big news out of Fairhaven as the longtime leader of the Acushnet family of brands is retiring at year's end.

David Maher, the current top lieutenant at Titleist, will take over January 1, 2018.

For Immediate Release:

Acushnet Holdings Corp. Announces Retirement of Wally Uihlein, President and CEO, effective as of January 1, 2018

David Maher appointed President and CEO

FAIRHAVEN, MA – September 25, 2017 - Acushnet Holdings Corp. (NYSE:  GOLF) (“Acushnet”) announced today that Wally Uihlein, President and Chief Executive Officer, has notified the Acushnet Board of Directors of his plan to retire, effective January 1, 2018.  Uihlein started with Acushnet in 1976 and has been the senior golf executive since 1995.  Uihlein will remain on the Acushnet Board of Directors and also become Advisor to the Chairman.

Acushnet also announced that its Board of Directors has appointed David Maher, Acushnet’s current Chief Operating Officer, to succeed Mr. Uihlein as President and CEO, effective upon Mr. Uihlein’s retirement.  Mr. Maher, age 49, joined the Company in 1991 and was appointed Chief Operating Officer in June 2016.  Prior to that, Mr. Maher was Senior Vice President, Titleist Worldwide Sales and Global Operations from February 2016 to June 2016 and Vice President, Titleist U.S. Sales from 2001 to January 2016.   

Commenting on the announcement, Acushnet Chairman Gene Yoon said "We thank Wally Uihlein for his forty plus years with Acushnet and the terrific leadership he has provided during this time.  I am very happy that Wally will remain on the Board and also serve as Advisor to the Chairman.  Acushnet will continue to benefit from his extensive knowledge and experience in areas such as strategic planning, acquisitions, player promotion and golf equipment regulatory matters.”

Yoon continued "I also want to congratulate David Maher on his promotion to President and CEO.  During his twenty six years with the Company, David has demonstrated both the leadership and strategy skills that will ensure that Acushnet will continue to be one of the leading companies in the worldwide golf industry.”

Golf Datatech: Online Equipment Orders Up 50%

Mike Stachura parses the latest Golf Datatech numbers for GolfDigest.com and spots a few interesting trends, including online orders increases but also points out some numbers that suggest retailers will still sell most golf clubs for the time being.

According to the survey, online shopping for golf equipment was up more than 50 percent over a year ago. In addition, half of the survey’s respondents say they go online daily to get information about golf. In a 2016 GPAU study, when answering the question where they were most likely to make their next golf equipment purchase, respondents said an online retailer 13 percent of the time.

PXG Suing Retailers Over Taylor Made Irons Sets Bizarre Precedent Worth Watching

Having been rejected by courts in stage one of a patent fight over irons, PXG's Bob Parsons has taken his fight to the retailers selling Taylor Made's P790 irons, as multiple outlets reported.

From Mike Stachura's excellent Golf World analysis where he names Worldwide Golf (Edwin Watts, Roger Dunn), PGA Tour Superstore, Golf Galaxy and Dick's Sporting Goods as unsuspecting parties brought into the case by Parsons. But they apparently should not be shocked!

According to Allan Sternstein, professor of intellectual property and director of the IP and Entrepreneurship Clinic at the University of Arizona, “Those that infringe a patent are anyone who makes (manufacturers), uses (consumers), sells or offers to sell (retail outlets, golf shops, etc.) a product that falls within the scope of one or more claims of the patent. Accordingly, suing a retailer for patent infringement is totally appropriate under the law.”

Still, Al Morris, president of Worldwide Golf, said he was “blown away” when he learned Friday morning that he’d been sued by PXG. Morris was part of a team that successfully invalidated patents in a case filed by Max Out golf over clubfitting patents, a more than two-year struggle that cost Morris "hundreds of thousands of dollars" but ultimately culminated with victory in a review by the U.S. Patent and Trademark Office last month.

“I don’t understand it,” he told Golf Digest late Friday. “This shocks us. I think he’s doing a disservice to the industry. I just don’t get it.”

Chris Nickel noted this at MyGolfSpy:

By suing retailers, PXG is taking the road less traveled, but it is a road other have taken with some success. Strategically, the move might make sense, although it’s certain to draw the ire of the retail chains targeted, and likely the mainstream wing of the industry as a whole. The reality is these chains won’t ever be part of PXG’s business plan, so there’s no risk of PXG losing sales directly, and we suspect that PXG Founder, Bob Parsons, doesn’t much care what his competitors think.

It's stating the obvious: Parsons is going after retailers at a time they are struggling and yet still providing a more cost effective option for buying fitted clubs. Not everyone can afford the PXG experience and club, so feel free to think little of Parsons for dragging the good folks in retail into this fight. He certainly is entitled to protect his patents but if he cared about golf, he wouldn't drag the retailers into this.

Here is another angle worth noting: if we get to the "variable distance ball" or distance rollback stage where a product designed to be used on classic courses comes to market, patent wars may develop in an effort to slow down the manufacture and sale of such a ball.

Parsons may have set the stage for other manufacturers to go after retailers or even golf professionals who would sell a product designed to make a course more safe or to play as intended. 

What PXG Must Prove To Win Its Taylor Made Suit

Golf.com's Michael McCann tries to decipher what PXG must do to prove its patent suit against TaylorMade says this will come down to a battle over "new" and "existing" designs.

The lawsuit referenced by Parsons was filed in the U.S. District Court for the District of Arizona and is embodied in a 277-page complaint authored by attorneys from the law firms Loeb & Loeb and Jennings, Strouss & Salmon. The complaint asserts that TaylorMade has infringed upon multiple patents related to PXG's "revolutionary iron," which purportedly contains "an expanded sweet spot, having an ultra-thin club face, and an elastic polymer material injected in the hollowbodied club head."

PXG contends that the design of TaylorMade's P790 irons copies patent-protected designs for PXG's clubs.

Parsons Tweets He's Sued Taylor Made Over P790 Irons

Looks like we have a fun patent battle looming with PXG Founder Bob Parsons going after Taylor Made according to...Bob Parsons.

Chris Nickel at MyGolfSpy reminds us that golf companies sue each other all the time, it's just a bit unusual for the founder of one to announce on Twitter.

While he isn't sure what the issue is, Nickel offers an assessment that includes this:

While neither TaylorMade nor PXG has offered any official statement, one has to think the basis for the suit has to do with the injection filled, hollow-body construction that is the foundation of most PXG products. While PXG uses thermoplastic elastomer and TaylorMade uses a TPU-based SpeedFoam, if the patents are broad enough, the material won’t matter. This case will likely boil down to process and construction, not the material composition of the goo.

Through the proverbial grapevine, MGS has learned that PXG anticipated this day would come, but it would have been impossible to foresee which OEM would step far enough over the line to prompt this response from Parson and PXG.

Even better, Parsons can travel to court in his new PXG helicopter reports Ben Aberstadt at GolfWRX.

Acushnet Files Answer to Costco Complaint With Gusto!

Not coincidentally around the announcement of a slight second quarter sales dip of golf ball sales, Acushnet has countered with a lively filing!

David Dawsey at Golf Patents picks apart the claim and notes some of the stronger rebuttal points against Costco's hot-selling Kirkland ball. His conclusion:

Acushnet’s complaint contains a lot of subtle, and some not so subtle, jabs at the Kirkland Signature golf balls. It is hard to comprehend that “over half of the Kirkland Signature Golf Balls tested by Acushnet Company cracked or became structurally unsound before the testing could even be concluded.” Maybe there is some truth to the old adage that sometimes you get what you pay for! Fortunately, most amateurs would probably lose the ball before it becomes “structurally unsound;” in other words, it may not be too smart to play the K-Sig’s that you find in the woods or fish out of the pond.

This was fun from the filing:

34. Distance Performance. The results of the distance tests for the Kirkland Signature Golf Ball and the Titleist® Pro V1® and Pro V1x® golf balls during Acushnet Company’s robot testing demonstrated that the Kirkland Signature Golf Ball travelled a shorter distance than both the Titleist® Pro V1® and Pro V1x® golf balls for 130 mph drives; that the Kirkland Signature Golf Ball travelled a shorter distance than both the Titleist® Pro V1® and Pro V1x® golf balls for 140 mph drives; that the Kirkland Signature Golf Ball travelled a shorter distance than both the Titleist® Pro V1® and Pro V1x® golf balls for 150 mph drives; and that the Kirkland Signature Golf Ball travelled a shorter distance than both the Titleist® Pro V1® and Pro V1x® golf balls for 167 mph drives.

Golf Channel Acquires Revolution Golf

Erik Matuszewski reports at Forbes on Golf Channel's purchase of Revolution Golf and its 2 million subscribers.

He explains how this could be an Amazon Prime-inspired play:

Five years ago, Revolution Golf launched a premium subscription offering for which members pay up to $124 annually to access a library of exclusive video content, special offers on training aids, equipment, and exclusive member-only events. Two-thirds of the business's subscribers play golf at least once a week during the season. That participation is part of what makes golf unique – the sport’s fans are also passionate players.

Golf Channel is serving that passion. And not just via TV, but also through its continually growing digital businesses: playing, instruction, travel and now e-commerce.

As Golf Channel’s McIntosh says -- “We want to connect the world to golf.”

NY Times: "You Can Always Get a Tee Time, but Turning a Profit Can Be Tricky"

Paul Sullivan uses his NY Times Wealth Matters column to talk to a nice range of golf course developers, including Warren Stephens at Alotian Club and Paul Schock of Prairie Club. The topic? The costs and perils of buying or building a golf course.

Most of the stories end on a positive note, but not after cautionary tales about spending.

This from Chip Smith, who bought the TPC Myrtle Beach but later sold it to Chinese investors in 2014.

But last year, when he and a partner, Doug Marty, bought a course in Florida, Wellington National, he said he realized just how much money it could cost to turn around a course and make it profitable.

“We went into that one and evaluated the facilities and the golf course,” Mr. Smith said. “It was by far the worst one I’d ever seen in terms of being open and playable but being in awful condition. Doug likes to say we went in with an unlimited budget and exceeded that.”

They shut the club for a year of renovations. It has now reopened and started to attract members. The two partners are betting that it can attract members from the surrounding equestrian community and nearby Palm Beach.

But recouping their investment will take time. The initiation fee is $7,500 and annual dues are $6,750, comparatively modest in an area where $50,000 and $100,000 initiation fees are common