PXG Tour Players and their contracts

[Forged4ever]

HaHa, peeps sayin that they wouldn't try out his clubs or buy them is akin to sayin that they are not going to test drive and/or buy a Ferarri.....

 

No S***, LMAO ;)

 

Stay Well My Friends :)

 

Golfingly Yours,

RP

[caniac6]

HaHa, peeps sayin that they wouldn't try out his clubs or buy them is akin to sayin that they are not going to test drive and/or buy a Ferarri.....

 

No S***, LMAO ;)

 

Stay Well My Friends :)

 

Golfingly Yours,

RP

When the salesman saw me drive up in my Subaru, he'd just laugh when I ask for a test drive.

[MtlJeff]

It's going to be interesting to monitor how this company does, especially if they will have high'ish profile endorsements. From what i gather, Parsons is banking on the fact that he believes there is enough of a market of very wealthy golfers who will want to have "status" clubs. Yes, yes, yes...i know, demo them and maybe they are soooooo much better then everything out there. OK on a site like GolfWRX that is always going to be the answer

 

But in the real world, if you look at Parsons actions at the country club he bought, and the pricing of his clubs, his vision of his clientele seems to be the status-oriented wealthy person, of whom he thinks there is enough of a market

 

You know what, he may not be wrong. As the distribution of wealth continues to increase over the years, there is somewhat of a gilded-age style excess for the sake of excess behavior among many of the "elite"....the standard "Why did you do that?" "Because i can" crowd...That's who he wants to sell to

 

It's not a horrible strategy. The super wealthy is a market segment like any other.

 

And yes i agree though with others who said 125K isn't wealthy in terms of household income. That's actually not really even close to wealthy. It varies depending on property values...but in many places, especially larger cities, i'd think double that, at a minimum. I know multiple people with household incomes higher then 125k who say they won't buy new irons period, let alone PXG....because they can't afford it with kids/wife/mortgage etc

[golfandfishing]

Three things in the second article stood out to me.

 

 

1. He considers himself Santa Claus in the "saving" of the club. He stated "nobody was asked to leave" after his purchase. He doesn't mention his new policies were designed to force resignations.

 

2. He told members and club founders they "did't make enough money to stay in a highly exclusive club". Hell of a statement to folks who paid $110k in initiation fees.

 

3. He states "I understand that many of our members will not like the above policy particularly those who play the course the most and spent the least". Isn't part of the draw of private club membership that is gives you the best bang for your buck?

 

The article reads like someone out of touch with reality!

 

LOL. The people that join clubs like Scottsdale National aren't looking for best bang for their buck. They are looking to not associate with people who look for such things, and gladly pay a premium to do so.

[bruinsPATSirish]

Three things in the second article stood out to me.

 

 

1. He considers himself Santa Claus in the "saving" of the club. He stated "nobody was asked to leave" after his purchase. He doesn't mention his new policies were designed to force resignations.

 

2. He told members and club founders they "did't make enough money to stay in a highly exclusive club". Hell of a statement to folks who paid $110k in initiation fees.

 

3. He states "I understand that many of our members will not like the above policy particularly those who play the course the most and spent the least". Isn't part of the draw of private club membership that is gives you the best bang for your buck?

 

The article reads like someone out of touch with reality!

 

LOL. The people that join clubs like Scottsdale National aren't looking for best bang for their buck. They are looking to not associate with people who look for such things, and gladly pay a premium to do so.

 

Apparently not the premium Parsons wanted them to pay

[Forged4ever]

It's going to be interesting to monitor how this company does, especially if they will have high'ish profile endorsements. From what i gather, Parsons is banking on the fact that he believes there is enough of a market of very wealthy golfers who will want to have "status" clubs. Yes, yes, yes...i know, demo them and maybe they are soooooo much better then everything out there. OK on a site like GolfWRX that is always going to be the answer

 

But in the real world, if you look at Parsons actions at the country club he bought, and the pricing of his clubs, his vision of his clientele seems to be the status-oriented wealthy person, of whom he thinks there is enough of a market

 

You know what, he may not be wrong. As the distribution of wealth continues to increase over the years, there is somewhat of a gilded-age style excess for the sake of excess behavior among many of the "elite"....the standard "Why did you do that?" "Because i can" crowd...That's who he wants to sell to

 

It's not a horrible strategy. The super wealthy is a market segment like any other.

 

And yes i agree though with others who said 125K isn't wealthy in terms of household income. That's actually not really even close to wealthy. It varies depending on property values...but in many places, especially larger cities, i'd think double that, at a minimum. I know multiple people with household incomes higher then 125k who say they won't buy new irons period, let alone PXG....because they can't afford it with kids/wife/mortgage etc

Excellent Post and excellent strategy if the numbers(market size) work. I have no idea, however all one has to do is look at any market and you find a segment where the product is simply status and the reason for purchase is akin to the male dog genitalia theory, with both the dog and the Man/Lady doing it cuz they can, as Jeff said(well, minus the dog thingy)-

 

Nice post!

 

All the Best,

RP

[golfandfishing]

Three things in the second article stood out to me.

 

 

1. He considers himself Santa Claus in the "saving" of the club. He stated "nobody was asked to leave" after his purchase. He doesn't mention his new policies were designed to force resignations.

 

2. He told members and club founders they "did't make enough money to stay in a highly exclusive club". Hell of a statement to folks who paid $110k in initiation fees.

 

3. He states "I understand that many of our members will not like the above policy particularly those who play the course the most and spent the least". Isn't part of the draw of private club membership that is gives you the best bang for your buck?

 

The article reads like someone out of touch with reality!

 

LOL. The people that join clubs like Scottsdale National aren't looking for best bang for their buck. They are looking to not associate with people who look for such things, and gladly pay a premium to do so.

 

Apparently not the premium Parsons wanted them to pay

 

And he rid himself of those people, leaving him the exact level of members he was seeking.

[EKELLY]

A friend of mine said he heard on Golf Channel the the new PXG tour players are not paid to pay the equipment but are on a bonus scheme. Additionally, they have to pay for their equipment. I find this hard to believe ... does anybody out there have the real info...?

 

Thanks

 

Pay for their own equipment? No way, no way at all! PXG has their little tour van on the go now that they have a proper tour presence. Are the guys on the truck carrying out their work and then asking the player to stump up before they get their clubs? No way at all.

 

Agree with this but I'm looking for some facts including any contract info...

 

There doesn't seem to be a lot out there to be fair. This far I don't think I have heard anything credible with regard to how much the staff guys are being paid (whether it's a fixed amount of incentive based) or how long they have signed up for. I do remember reading a story that the guy Parsons behind this bought a golf club and began charging members a $100 service charge every time they teed it up and placed a limit of the number of rounds members could play before they brought in a paying guest to play with them. Crazy! So perhaps the contracts are just as out there.

The PGA Tour is very anonymous as far as the players and their equipment contracts. A VERY good buddy caddies for a former Master's winner, and he tells me that only a couple handfuls of the guys are making BIG money from the club companies.....(Phil, Tiger, Rory, Henrik, Rickie, Jason, Justin) The rest are under a million, generally.....Still not bad, on top of earnings......

[Scaldy]

If I spent $5000 on a new set of clubs I don't know if I could ever let them out of my site. I'm freaked enough about a $400 putter being stolen I use a knock off cover.

[king_biscuit]

A friend of mine said he heard on Golf Channel the the new PXG tour players are not paid to pay the equipment but are on a bonus scheme. Additionally, they have to pay for their equipment. I find this hard to believe ... does anybody out there have the real info...?

 

Thanks

 

Pay for their own equipment? No way, no way at all! PXG has their little tour van on the go now that they have a proper tour presence. Are the guys on the truck carrying out their work and then asking the player to stump up before they get their clubs? No way at all.

 

Agree with this but I'm looking for some facts including any contract info...

 

There doesn't seem to be a lot out there to be fair. This far I don't think I have heard anything credible with regard to how much the staff guys are being paid (whether it's a fixed amount of incentive based) or how long they have signed up for. I do remember reading a story that the guy Parsons behind this bought a golf club and began charging members a $100 service charge every time they teed it up and placed a limit of the number of rounds members could play before they brought in a paying guest to play with them. Crazy! So perhaps the contracts are just as out there.

The PGA Tour is very anonymous as far as the players and their equipment contracts. A VERY good buddy caddies for a former Master's winner, and he tells me that only a couple handfuls of the guys are making BIG money from the club companies.....(Phil, Tiger, Rory, Henrik, Rickie, Jason, Justin) The rest are under a million, generally.....Still not bad, on top of earnings......

 

Why would the big 4 pay guys like Colt Knost or Hudson Swafford big money; those guys are not moving product and no one is going to buy a club because they are playing it. The same applies to 95 percent of the filler class on tour. It's probably more beneficial for companies to be able to say they have X number of tour players playing their gear than having any particular non "A" list player play the gear.

[Crashhays]

So on Saturday mornings in the DFW area, there is a morning golf show on the radio. Anyways, two weeks ago they were talking about PXG and the host said something along the lineups of, "I have a close friend on the tour that "heard" Zach's deal will pay him $6 mil. Now, I don't know if that's true but my friend usually knows things on the tour that most dont"

 

That being said, I don't know how long zach signed for so I wouldn't know if it's a lot or not. I'll gladly take 6 million thougj to play clubs with screws in them. ;)

[elwyn07]

How about the logo's these guys are sporting? Those dont get on there for free!

[Pert1862]

Whatever he is paying these guys it's working. He got some big names right out the gate, that's saying something.

[GeorgeHWB]

I hope you PXG lovers enjoy buying clubs from this pud. The clubs are Veblen items--not some super high tech clubs. You are being played for suckers.

[Burt Chance]

A friend of mine said he heard on Golf Channel the the new PXG tour players are not paid to pay the equipment but are on a bonus scheme. Additionally, they have to pay for their equipment. I find this hard to believe ... does anybody out there have the real info...?

 

Thanks

 

PXG and their owner seem to be as shady as it comes.

[buckeyefl]

Whatever he is paying these guys it's working. He got some big names right out the gate, that's saying something.

 

It's saying he's paying them, nothing more. For clarification research how TM decided to pay everyone more to put their drivers in their bags so they could claim they were the dominant driver on tour which made the sheep believe they had the best product instead of paying attention to reality which was they were forking out cash.

[Sixcat]

Three things in the second article stood out to me.

 

 

1. He considers himself Santa Claus in the "saving" of the club. He stated "nobody was asked to leave" after his purchase. He doesn't mention his new policies were designed to force resignations.

 

2. He told members and club founders they "did't make enough money to stay in a highly exclusive club". Hell of a statement to folks who paid $110k in initiation fees.

 

3. He states "I understand that many of our members will not like the above policy particularly those who play the course the most and spent the least". Isn't part of the draw of private club membership that is gives you the best bang for your buck?

 

The article reads like someone out of touch with reality!

 

LOL. The people that join clubs like Scottsdale National aren't looking for best bang for their buck. They are looking to not associate with people who look for such things, and gladly pay a premium to do so.

 

Apparently not the premium Parsons wanted them to pay

 

And he rid himself of those people, leaving him the exact level of members he was seeking.

 

Just what we need in our society! More exclusion of anyone with differing opinions or views to help ensure we surround ourselves with like mindedness.

[golfandfishing]

Didn't say it was good, just that he accomplished exactly what he wanted to do when he purchased the club.

Incidentally, that club would not be in existence without his purchase. It was 5 feet, 11 3/4 inches under at the time. So the members that got their fees refunded were lucky, otherwise they would have been lost entirely.

[North Texas]

Didn't say it was good, just that he accomplished exactly what he wanted to do when he purchased the club.

Incidentally, that club would not be in existence without his purchase. It was 5 feet, 11 3/4 inches under at the time. So the members that got their fees refunded were lucky, otherwise they would have been lost entirely.

 

I was thinking the same thing. I mean, think about it. He bought the club for only $600,000! It had to be a pretty bad situation there. Otherwise, you would thought there were enough members who would have gone in together and bought it. Since they didn't, it must have been bad.

[Afraid2goLow]

So on Saturday mornings in the DFW area, there is a morning golf show on the radio. Anyways, two weeks ago they were talking about PXG and the host said something along the lineups of, "I have a close friend on the tour that "heard" Zach's deal will pay him $6 mil. Now, I don't know if that's true but my friend usually knows things on the tour that most dont"

 

That being said, I don't know how long zach signed for so I wouldn't know if it's a lot or not. I'll gladly take 6 million thougj to play clubs with screws in them. ;)

 

Love The Teebox, nice to see another P1 on the board, figured there would be quite a few on here.

[Sixcat]

Didn't say it was good, just that he accomplished exactly what he wanted to do when he purchased the club.

Incidentally, that club would not be in existence without his purchase. It was 5 feet, 11 3/4 inches under at the time. So the members that got their fees refunded were lucky, otherwise they would have been lost entirely.

 

I was thinking the same thing. I mean, think about it. He bought the club for only $600,000! It had to be a pretty bad situation there. Otherwise, you would thought there were enough members who would have gone in together and bought it. Since they didn't, it must have been bad.

 

To be fair, he paid 600k for the property and inventory. He also refunded 65 initiation fees. If all were of the 110k variety, that's another 7.15 million dollars. Some of the 65 initiation fees reimbursed were likely of the 25k variety. Without knowing how many, he paid no less than 7.75 million dollars.

[Shilgy]

Didn't say it was good, just that he accomplished exactly what he wanted to do when he purchased the club.

Incidentally, that club would not be in existence without his purchase. It was 5 feet, 11 3/4 inches under at the time. So the members that got their fees refunded were lucky, otherwise they would have been lost entirely.

 

I was thinking the same thing. I mean, think about it. He bought the club for only $600,000! It had to be a pretty bad situation there. Otherwise, you would thought there were enough members who would have gone in together and bought it. Since they didn't, it must have been bad.

 

To be fair, he paid 600k for the property and inventory. He also refunded 65 initiation fees. If all were of the 110k variety, that's another 7.15 million dollars. Some of the 65 initiation fees reimbursed were likely of the 25k variety. Without knowing how many, he paid no less than 7.75 million dollars.

Plus debt and renovations. I don't know why so many on here are upset about what he did unless they are just jealous. He bought the club, he owns it and can do what he wants with it. I have seen posts on this forum from guys that say they wish they could buy a club and make the rules and then they slam Parsons.

As to the PXG clubs they are expensive. But no one is forced to buy them.

[canonlbp430]

If you actually read a follow up article to the original, he changed the cost structure to about half of what his initial letter said for per round fees and other items. His goal was to get rid of the people who weren't all in on the club and it's new structure.

[Shilgy]

If you actually read a follow up article to the original, he changed the cost structure to about half of what his initial letter said for per round fees and other items. His goal was to get rid of the people who weren't all in on the club and it's new structure.

The dues went way up as well though. $2k per month is the number.

[cardoustie]

He's a billionaire doing what he wants. Most of us in the same boat would be doing the same, though I'd start from scratch me thinks

 

$8 million for that course was like us dropping $5 on a cold one

 

He hired two guys to knock off s55's which most pro's love(d). Smart move. Can't blame him for that. screws add to the cosmetics but I don't see it doubling the value .. but others will

 

Zach became too big for Titleist and he was let go, just like others before him. I am betting 6mm is about right. Top guys get 10? I think Phil and Tiger used to get 20 but I could be wrong

[buckeyefl]

Three things in the second article stood out to me.

 

 

1. He considers himself Santa Claus in the "saving" of the club. He stated "nobody was asked to leave" after his purchase. He doesn't mention his new policies were designed to force resignations.

 

2. He told members and club founders they "did't make enough money to stay in a highly exclusive club". Hell of a statement to folks who paid $110k in initiation fees.

 

3. He states "I understand that many of our members will not like the above policy particularly those who play the course the most and spent the least". Isn't part of the draw of private club membership that is gives you the best bang for your buck?

 

The article reads like someone out of touch with reality!

 

LOL. The people that join clubs like Scottsdale National aren't looking for best bang for their buck. They are looking to not associate with people who look for such things, and gladly pay a premium to do so.

 

Apparently not the premium Parsons wanted them to pay

 

And he rid himself of those people, leaving him the exact level of members he was seeking.

 

Just what we need in our society! More exclusion of anyone with differing opinions or views to help ensure we surround ourselves with like mindedness.

 

That's just silly. It's a private club not the Nazi party although Parsons is a tool.

[Sixcat]

That's just silly. It's a private club not the Nazi party although Parsons is a tool.

 

Dam dude! Win any gold medals making leaps like that?

[buckeyefl]

That's just silly. It's a private club not the Nazi party although Parsons is a tool.

 

Dam dude! Win any gold medals making leaps like that?

 

Dude, the only one leaping was the person I responded to who thinks private golf clubs catering to like minded people is something new or that it represents the downfall of society. You OK with that dude?

[MtlJeff]

If you actually read a follow up article to the original, he changed the cost structure to about half of what his initial letter said for per round fees and other items. His goal was to get rid of the people who weren't all in on the club and it's new structure.

 

His goal was to get rid of people who actually played the course, and once they were gone then he re-structured the fees a bit. He basically admitted this in a follow up interview. He said these members weren't contributing to the club, but they had clearly paid their entrance fees and dues, and i have a hard time believing none of them ate at the restaurant.

 

He kicked out the members that played too many rounds for his vision....his vision is a course that no one plays except CEOs with 3 guests 5 times a year.

 

Yes, he is super wealthy and its his right to do whatever he wants with the course, but his behavior in this regard and with his club company, speak to his target audience and who he wants to appeal to, and it's not 99% of the people who will read this post

[Forged4ever]

He's a billionaire doing what he wants. Most of us in the same boat would be doing the same

HaHa, I'm in debt up to my eyeballs and threatended to cut out happy hours for those who drink too much during the happy hour times and I may also add a "surcharge" per drink-

 

If I were a billionaire free and clear???

 

Oh Dear Lord, you guys, my patrons, my clients, hell everybody, would hate me :)

 

Boy, Maddie's right, I'm gettin worse, maybe I should go back to those group sessions-

 

Hell, the other night Madison and I were discussing this and she said that she didn't know if she could work at a club with an owner like Parsons, and I said #1, we really don't know what kind of owner/boss he is as there's been nothing or anyone with first hand accounts-

 

Then I asked her to please refer to me as "Daddy," as in "Go Daddy Go, Go Daddy Go" and Holy S***, you'd have thought I attacked one of the children, lol

 

She grabbed my pink 9032 driver and I was like "nooooooo," lol-

 

I have a way of bringin out the best in people ;)

 

I wonder how Parsons is with the Women ;)

 

Have a nice eveing Gents!

 

All the Best,

Richard