As 2011 approaches three golf stories from 2010 will have an impact in the New Year and beyond.
First is the comeback of Tiger Woods. Fans, other Tour players and certainly golf businesses want the former world’s number one player, in words of the Golf Channel, “on the first page of the leader board.” As has appeared here in previous columns, golf needs a winning and personally engaging Woods.
It is self-evident also Woods needs golf even more.
Next, the spin-off of Acushnet Company by Fortune Brands may set the equipment business on a new course. Several possibilities exist for new ownership of the world’s largest golf equipment company and golf’s iconic brands, Titleist and Foot-Joy.
Acushnet could become part of another golf company. A move in that direction would most likely mean anti-trust scrutiny, maybe lawsuits or other entanglements and lots of ‘fooling-around.’ Probably enough fooling-around that any competitor would think twice (or maybe three times) before raising their hand to make a bid.
The makers of the market dominant golf balls and golf shoes could go to someone outside the industry. Acushnet has been and still is very profitable and thus attractive though the golf industry has at best only modest growth prospects. In fact, Acushnet does have some of the characteristics prized by an avid golfer named Warren Buffett, so Berkshire Hathaway might even be a candidate.
However the most likely deal is using private money and perhaps even Acushnet CEO Wally Uihlein is putting together the necessary billion to billion and a half. Presumably the idea would be to either keep Acushnet private or take it public to recover the investment. Proven, profitable management would stay in place and there would be a minimal impact on the equipment business competitive landscape. But the most important factor, for the company and the golf industry, would be continuation of Acushnet’s decades-long commitment to product quality and innovation.
Lastly David Fay, executive director of the United States Golf Association retired. He became USGA’s leader shortly after the Ping/Karsten Solheim law suit fiasco over the association’s ruling concerning iron grooves and ends his tenure with the disappearance of the so-called ‘great grooves controversy’ as the USGA mandated the end to box grooves.
Fay had some credible achievements during his 21 year leadership such as seeing the U.S. Open booked on courses the public could actually play (i.e., Bethpage State Park’s Black Course) and putting the finances of the organization on very firm ground. In fact, there is lots of money in the bank to fund a variety of programs “for the good of the game” though some critics question why a not-for-profit organization whose stated purpose is to determine the rules of the game and conduct a national championship needs all those millions.
The new USGA executive director will take on a major question. He or she may continue down the path placing evermore restrictions on golfers and their equipment or allow the game to continue to evolve and grow as it has for over five centuries while embracing appropriate new ideas. That’s a big task.
About Ed Travis
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- Adding insult to injury
- Titleist ads with Villegas still on TV
- Acushnet on the block
- A Cobra becomes a Puma
- Titleist Aces Callaway
