Taylormade Golf sold

[cardoustie]

Maybe TM will copy the PXG model and dump the middleman .. massive margins

\

Direct to consumer baby

[DON SVO]

13 hours ago, tbone18 said:

If you're talking about Taylormade Callaway and Titleist(Acushnet)  now 2 of them are owned by Korean based companies.  TM and Acushnet.

 

KPS Capital Partners owned TM until this sale was broadcast, they are an American equity firm. PING and Callaway being the other 2.

[QuigleyDU]

14 hours ago, Tiptx1122 said:

This is happening all over big time hedge fund investors come in wanting to make cuts increase the work load on the employees then stocks go up.  Do you really think they care about their employers or the community as they will bail out. The Big CEO's and executive officers only care about pleasing the share holders as it's giving them their big bonuses. It's nothing but corporate greed. Get ready for the prices to go up on everything or it will become so cheaply made that soon after the investors make their big and quick profit it's see you later. 

I agree with some of what you said but not all. We will have to see about quality and pricing.. Taylormade saw its darkest days in quality and performance right before it was bought previously by an investment group. They surged and improved right after that. 

[fundustrial]

1 hour ago, QuigleyDU said:

I agree with some of what you said but not all. We will have to see about quality and pricing.. Taylormade saw its darkest days in quality and performance right before it was bought previously by an investment group. They surged and improved right after that. 

 

Valid point!

[Texas Golfer]

10 hours ago, Fairway14 said:

Compared to the golf soft goods industry (apparel and footwear) I believe hard goods (clubs and balls) is relatively easy to manage. For example, the hard goods companies seem to follow the same model:

1) Use computer CAD systems to design clubs

2) Tour player endorsed clubs/balls

3) provide fitting/demo days at retail shops, driving ranges, golf courses etc....

4) produce product at relatively low cost Asia-based factories

5) distribute product directly thru company website, internet retailers, on course and off course pro shops

 

If a company has the financial resources to follow the above model, and as long as the game of golf has reasonably healthy player participation numbers, being a golf hard goods company is a profitable business. For their hard goods lines TM, Callaway, Ping, Titleist, Cobra, Cleveland-Srixon, Mizuno etc... all seem to follow the same business model.

This is why a $500 driver is highway robbery.  
The early titanium drivers were high priced, in part, because titanium was a difficult metal to work with at the time.  I don’t see any technical problems that justify a $500 price tag today, except maybe the tariffs.

Edited May 12, 2021 by Texas Golfer

[Avidswampthing66]

12 hours ago, cardoustie said:

Maybe TM will copy the PXG model and dump the middleman .. massive margins

\

Direct to consumer baby

KABOOM BB 😂

[Quasimoto]

If memory serves correct they paid $400 million for TM. Sweet return.

1 hour ago, bladehunter said:

True - but.   That reminds me of a line in a song.  “ I hate those people who love to tell you , money is the root of all that kills .  They have never been poor , They have never had the joy of a welfare Christmas “.  
 

some truth in both perspectives I’d say.  If you’ve started where I did , it is incredibly hard to empathize with a kid who has a mom who cares , a college education paid for , and a pro career with a win already.  
 

 

that being said. I also understand mental hurdles , and that lots of times we build them ourselves.  That aspect I can empathize with.  I hope he gets over that hurdle soon and realizes his upside.  

 

On 5/11/2021 at 9:54 AM, QuigleyDU said:

1.6 billion is the sales number.. 

 

 

[driveandputtmachine]

13 hours ago, Texas Golfer said:

This is why a $500 driver is highway robbery.  
The early titanium drivers were high priced, in part, because titanium was a difficult metal to work with at the time.  I don’t see any technical problems that justify a $500 price tag today, except maybe the tariffs.

There are very few just titanium drivers these days.   Not to mention the thinning out of the crowns and using new titanium or carbon to do this, plus internal weight movement and then putting it all together.

 

I am not saying that drivers aren't expensive.  I imagine "most" driver heads cost the manufacturer 75 to 100 bucks, then you pay for the shaft, the grip, headcover, tool, and assembly.  The rest is profit. 

 

I imagine most manufacturers make 220-250 or so on each driver.   When you factor in all that the manufacturer has to shell out for R&D, marketing, tour staff, legal, mgmt, facilities, sales, customer service, free equipment there is not a ton left for them in actual profit for shareholders/capital investment.