On March 19th we witnessed the end of yet another
American owned and operated Golf Company. I am not, in the rather populist
fashion that abounds these days, bemoaning the death of yet another American
Company, as such is not the case. But it does strike me as rather odd that one
by one, the big boys on the American Scene have dropped out of the game, and
sold their name, rights, patens, etc. to foreign competitors. It’s not so much
that they can’t make a profit anymore, as the buyers have all been more than
willing to step up to the plate, and pay fat premiums for the likes of
Titleist, Cleveland, and now---Adams. TaylorMade, the buyer in name, is itself, an
old American Company that sold itself to Adidas.
I did bemoan the
death of Nickent Golf, as that was a flat out—belly-up, “We’re bankrupt, and we
ain’t never comin’ back.” type of deal. “Dick’s Sporting Goods did buy the
name, and the rights to the last designs on the drawing board, but that’s
pretty much the end of that tale. Sadly, MacGregor Golf suffered a similar fate
after what appeared to be a fairly successful resurrection. Sadly, not even the
well-heeled Greg Norman could save them. So in similar fashion, the name and
the last designs on the drawing boards were sold off to GolfSmith, who has z
strong track record of buying the names of many a once shining star. (Lynx
Golf, Zevo Golf, Snake Eyes Golf, et al.) So this raises a rather interesting
question. If it’s no longer just the niche and marginal players who are leaving
the landscape, how long can it be before Callaway, and even Ping Golf go the
way of the once burgeoning American Television industry? They are, after all,
the last two American players left on the scene.
Many of the
product reviews I wrote about Adams and TaylorMade products featured the fact
that several years ago, there was a mass exodus of some of TaylorMade’s best
club designers. They left en masse, and the vast majority of their best and
brightest landed at none other than Adams Golf. It wasn’t long before Adams
shed their staid, and stodgy image as, “ The Old Man’s Golf Club, “ and/or “The
Volvo of Golf Clubs.” In fact, pretty soon they were pounding out clubs that
looked strangely enough like…”The next logical progression of what should have
been the next set of iterations of The TaylorMade Line”, save they bore The
Adams’ Moniker. TaylorMade continued on, but when Adams
beat them to the both Wind-Tunnel Technology, and eventually the “Velocity
Slot/Rocketballz Technology” it was only a matter of time before the boys at
Taylormade realized---“If you can’t beat ‘em----Buy ‘em out.” This leads to yet
another logical question.
One of the last
marginal American Player’s in the game that is left is “Tour Edge.” Callaway has been desperate for a hit with
their Odyssey Line of putters. Anyone who has read my reviews in the past will
note that there is no big secret that Callaway’s/Odyssey’s Marxman line borrowed
heavily from Tour Edge’s line—right down to the paint job. Next came the
“Backstryke” line of Odyssey Putter’s, and these are definite direct
descendants of Tour Edge’s “T-Balance” line of putters. There are also rumors
to the effect that the “Diablo Line” is actually a spin-off of some of Tour
Edge’s Experimental Prototypes, and that Tour Edge who had already suffered a
huge hit from trying to market 2 lines simultaneously (Xotics and V-25) didn’t
have the cash flow to take that risk again, so they sold them off to Callaway. Rumors
are, after all, only rumors, but it does sound plausible. Could Callaway be in
a position to pick up Tour Edge in the same way that Adams
bought out “Yes” Putters just before they themselves got eaten up by
TaylorMade. If so—who will buy Calloway? It’s no secret that Callaway is
raising cash. They just sold off their rights to the old, “Top-Flite” name to
Dick’s sporting goods.
The Top-Flite/Ben Hogan/Strata acquisition is
often viewed as the acquisition that saved Calloway who had previously bombed
out in the golf ball market, and was suffering severe quality control issues with
their Golf Club line. With the practically limitless production potential of
Top Flite’s legendary assembly lines, and the Legendary Quality Control offered
by the Ben Hogan Corporation, as well as some revolutionary golf ball designs
sitting on the drawing boards at Strata, it was a match made in heaven.
Even so, golf is a cut-throat business, and as we now see,
even an amazing turnaround is no guarantee of future success. Perhaps they feel
the need for another technology infusion, and David Glod’s little company isn’t
such a bad idea if you ask me.
Either way you cut
it, we are now in for an era of fewer and fewer “Golf Only” companies. Even
Puma has gotten into the game via their acquisition of Cobra Golf from the same
folks who spun off Titleist, i.e., Fortune Brands. This should all prove very
interesting down the road as Adidas has obviously been successful with their
TaylorMade Acquisition, but on the other hand, does anyone out there reading
this remember how quickly Fila Sports got in and out of the golf club business?
I really am hoping that some of the independents can make it, but in the past
ten years I’ve seen even more promising companies go bust, Nickent, MacGregor,
Burrows, Carbite---just to name a few, than I have seen get acquired. Acquisitions
of brand names don’t count. Seriously, are Lynx, MacGregor and Snake Eyes
actually stand alone companies or GolfSmith Brand Names? How about Nickent and
Maxfli? These are pretty much Dick’s Sporting Goods name brands now. Let’s not
forget Orlimar—now a mere shadow of its former self, and stamped out by the
same guys who stamp out “Knight” clubs for Kmart and the like.
Still, there’s hope
for Ping and Callaway, but it is getting to be a tougher market everyday. The
domestic market seems to have peaked already, but the global market is just
beginning to tap into its potential. It’s no wonder American Golf Companies are
a disappearing species. One by one some of the best names in the business are
either trading hands, or going belly up altogether. If they want to survive as
domestic stand alones, companies such as Scratch Wedges and SeeMore Putters,
are going to have to take on a new business model. As thin as the numbers are
for such a thing as boutique golf clubs, the Japanese are still making headway.
Maruman, a boutique maker, is trying to expand its line yet again, and it’s no
secret that Bridgestone Golf, a member of a larger corporate umbrella, is still
going strong as well. Perhaps Asia holds more
answers than simply acting as an overseas manufacturing option.