Club champion acquires TXG (merged)

[QuigleyDU]

1 minute ago, Heck2507 said:

This is actually a perfect example, Land Rover, is a shell of itself compared to what it was before being sold multiple times. The expansion has turned what was considered the greatest overland and off-road travel vehicle ever into a glorified mall crawler with a price tag based on a heritage it can no longer keep up with. 

 

so yes, I do think If people are buying a Land Rover because of their heritage they are being shorted. same as if they walk into a TXG in 3 years and the service is the exact same as club champion but you get a voss water at the door. 

 

Large brands continually try to buy what makes small niche companies successful, and it rarely works because of how large corporations set up their operations and management structure. 

 

Ive never been to TXG, so I have no real idea how they perform. I will say I've been to 2 tru specs, and they were awesome. I've also been to club champion 3 times. one was ok, one was really good, and one was not good. 

 

my only take on this is, in general when a large company buys a small, relatively unknown mom and pop level shop in the service industry, it's rare that they retain what made the shop worth buying out in the first place. 

 

 

haha. YOu could be right. I dont know. All I know of land rover is the are oil leaking messy cars that are terrible on up keep but for some reason they are high class. lol.. 

[TheBear95]

TXG is/was two businesses. A media company and a fitting studio.

 

I don't live in Canada, so I honestly don't care about their fitting business. I will say, being a small business owner in the current environment is tough. Will never critique a small business owner for making a move to improve their financial standing.

 

On the media side, I do watch their channel and enjoy their content. Losing Matt is a big blow though. He had a great chemistry with Ian. Will be difficult to replicate or replace. 

[-oo-]

It's possible: A Private Equity Firm, with a portfolio of 63 companies including Club Champion, now controls TXG as a subsidiary of Club Champion. Unless TXG somehow maintains 51% of its business operations after the merger with Club Champion, the extent of "TXG" control over business operations is questionable.

[tleader]

2 hours ago, Krt22 said:

My buddy said  he recently called and it was on the order of $500/hr, but it was converted into a credit if you had them build the clubs

yes, $500 is about right dependent on type of fitting.  I highly doubt any credit will apply.  Hasn’t for my fittings there and the boys were pretty adamant and fired up regarding the fee for fit model on the MGS debate. 

[tleader]

2 hours ago, RCGA said:

Isn't there a waiting list to get fitted at TXG? And they just opened a second location?

 

Doesn't sound like a cash strapped business. 

Ian had an 18 month waitlist at one point due to COVID shutdowns. The rest of the fitters are available within a reasonable amount of time.

[mktrout]

I dont blame them for selling, but it is a shame. TXG is excellent and Club Champion is absolute garbage. I can't believe they are still in business and people actually buy stuff from them.

[Avidswampthing66]

4 hours ago, MaineMariner said:

"I want to wish my friends at the company all the best in this next chapter, but it's not the right opportunity for me. Our vision for the company, channel and my role are unfortunately not in alignment, so I've decided to resign and explore other avenues within the golf industry."

 

From Matt's IG post. This is unfortunate, Ian and Matt have been such a fun watch for the last few years. I hate to see them breaking up like this.

 

I wonder what these means for Ryan Barath?

Idk, but man he talks….a….lot 

 

 

[Avidswampthing66]

4 hours ago, QuigleyDU said:

My guess TXG was in a sell or go bankrupt situation. Canada being locked down almost completely for over 12 months makes a business the size of TXG very difficult to survive. Sure the youtube content was very good. But if you look at their view numbers they are not bringing in millions. Its most like in the low thousands per month in youtube money. 

 

This was necessity meeting opportunity. 

💯% very reasonable assumption.

[Kale_m]

Sounds like a bunch of sellouts 

[Avidswampthing66]

3 hours ago, Wardonation said:

I have no idea but totally agree with this comment. The amount of overhead that Ian must have and not being able to do your "bread and butter" fittings had to take it toll for sure. Ian and TXG did everything first class. I am not sure what CC is buying that they do not already have except (Ian)? My hope is Ian got whatever he needed to at least break even on the TXG business. That man could get a job anywhere doing almost anything in the golf industry. I do however think the content the last year and half was not even close to the prior videos. They were shorter and seemed almost bored with it. The early videos were just gold IMO... 

But remember during the Covid lockdown they just PUMPED out all those videos??  Also, another thing to keep in mind here was Matt’s mental health.  The videos become more infrequent, I would assume in part, as a result of that. 

This is a huge bummer in a lot of ways and was looking forward to the Matty driver bracket w/all the new stuff. Sure someone else can do it….but it’ll never be the same. All the best to the boys and really hope txg can remain TXG.

 

[tphilp]

I live locally and was there when Ian started the business out of the back of a simulator location called faraway greens. Never did a fitting with Ian but Mike did a lot of stuff for me. To address some of the speculation on lockdown and impact to business ( there had been none hard stop) both TXG and Modern golf another local establishment have done really well and had banner years. I believe this has to do with expansion for additional locations. Ian had a hell of a time finding the location in Mississauga that they recently put up and I am guessing financing was tough too. I don’t get the sense that Ian had deep pockets to start but was instead was a great fitter working his craft. Modern golf the other Canadian fitter is very heavily backed and has popped up 5 plus locations across Canada.  
 

we will see what this means for their YouTube channel but I like many enjoyed their honest data driven takes. 

[snagy2000]

7 hours ago, wsupjs said:

 

Makes you wonder how long this has been in the works since TXG used VA for the fitting of their Pinehurst trip winners, rather than a traditional open brand fitting.

 

Seems like a great move financially for Ian, but am very curious to see what this means for TXG and their offering long term.

VA headquarters are in Pinehurst. 

[SoCalTitleist]

Outside of the wrx and other golf forums I don’t think TXG is as big as most think .

 

 

[ProStryker]

I was not really impressed with the driver fitting I got from Club Champion.  I was skeptical right off the bat when I asked if I could use my normal Prov1 ball that I play for my fitting.   He said the mid-tier cheaper Callaway balls that they already had dots on would be fine and produce the same numbers.  It put me off from the start….  Seemed too lazy to put a dot or sticker on my game ball…

[Mustard_Tiger]

1 hour ago, Avidswampthing66 said:

Idk, but man he talks….a….lot 

 

 

 

I find Matt to be a totally genuine guy who speaks his mind. I find that refreshing and unusual in this world of sellouts.

Edited January 11, 2022 by Mustard_Tiger

[lipw87]

4 hours ago, awtryau89 said:

I've seen this up close and personal quite a few times in my line of work. Just a prediction on what happens but here is how it usually plays out.

 

• Ian built this from the ground up and was doing too good of a job versus the "Big Boys".
• The big fish notices, sees value in the opportunity and makes an offer you Ian can't refuse.
• Ian probably has a contract for a while to stay with the new organization with to work through transition. There is probably a decent bonus for retention through an agreed upon time.
• Once that is over, Ian bolts for greener pastures with another organization which will pay him more, give him more autonomy or he just starts up another business to run it exactly how he wants.

pending there is no non compete that he signed.  not sure about golf business, but usually there is which lasts a short amount of time

Edited January 11, 2022 by lipw87

[Go_Blue!]

I actually hope Ian gets out of this deal/txg in the next couple years and starts another project. He and Matt had a chemistry that is unmatched in this arena. 

[SLHall]

It's legit:
https://www.firstcallgolf.com/industry-news/release/2022-01-10/club-champion-acquires-canadian-custom-fitter-txg

[My2Dogs]

18 minutes ago, Go_Blue! said:

I actually hope Ian gets out of this deal/txg in the next couple years and starts another project. He and Matt had a chemistry that is unmatched in this arena. 

Even if he does, Matt might be long gone into his next adventure.  I’m willing to bet this is the last of the duo.  I really liked both of them together but if Matt finds a good opportunity coming up, I don’t see him jumping ship in a couple years to start over.  That would be tough.

[Flip4000]

I am really hoping this acquisition is more about expanding the TXG brand to new markets, maybe the US. Probably a huge opportunity to bring that brand to markets that want it. However that only works if they keep the professional and knowledgeable for experience TXG is know for. Anything less would be devastating to the brand  
 

Hoping for more of a Scotty Cameron/ Titleist situation vs Taylormade/adams golf.

Edited January 11, 2022 by Flip4000

[mizuno player]

Wouldn't be surprised if Matt was asked to sign a five year or whatever year non compete. He may not have wanted that. Can't say I blame him.  I'm sure Ian had to sign one. 

 

Could a private equity be far off in buying CC? PE buys CC. Then Cool Clubs. Then.... Then... They have all boutique club fitters under same umbrella. ( Yes, I jumped off a cliff with that last thought!! )

 

 

 

[Llortamaisey]

23 minutes ago, Go_Blue! said:

I actually hope Ian gets out of this deal/txg in the next couple years and starts another project. He and Matt had a chemistry that is unmatched in this arena. 

My guess is that even if Ian gets out he will most likely have a non-compete. I highly doubt Matt has a non-compete though. Hopefully we see him pop up soon.

[TheBear95]

4 minutes ago, Flip4000 said:

I am really hoping this acquisition is more about expanding the TXG brand to new markets, maybe the US. Hoping for more of a Scotty Cameron/ Titleist situation vs Taylormade/adams golf.

Club Champion didn't purchase TXG to have them expand into the US. Club Champion is already here. Makes zero sense.

[cleverprimate24]

4 hours ago, dmeeksDC said:

Man, after a late night in New Orleans or for breakfast, you can’t beat those beignets at Cafe du Monde. On Decatur Street in the Quarter. They do have a second location in City Park. And they won’t have to upsell you — you’ll want

more beignets. 

Full disclosure, I only had the Cafe du Monde beignets in the airport, but I thought they were mediocre/barely edible. Basically a glorified funnel cake. 

 

Best part of the experience was the powdered sugar all over the carpet at various seats just away from CDM. 

 

Note: New Orleans was an awesome time, loved the "CBD" area, lots of great restaurants. 

Edited January 11, 2022 by cleverprimate24

[FletchJoy]

From what I have heard, TXG was funded by a silent partner (not Ian, though Ian owned a smaller portion of the business, maybe 15-20%?). Maybe the quick expansion put a little more pressure on them, but they would have had great revenue in 2020 and 2021 (even through the lockdowns), so I don't think they were up against a "wall" like others have suggested above. 

It will be interesting to see how this merger plays out the next 12-18 months, and I'm sure we will all learn a little more during their video tomorrow. 

Maybe the majority owner wanted an out, and Ian had no choice? Who knows? I don't we will ever know the exact details and circumstances. Hopefully, they find success whatever direction it goes, especially Matt who seems like a nice guy and has battled some mental health issues. As he mentioned in his IG post, it would be cool for him to use his viewership/platform to shed a little more light on mental health issues among people of all backgrounds. 

CC has been rumoured to have been looking at Canada for years, but was hesitant because of the overhead involved. With this merger, it sounds like a shortcut to success (at least according to them) to leverage a pretty strong viewership/community, facilities, equipment, staff and supplier relationships. 

[cleverprimate24]

I've seen several posts mentioning Matt leaving, what about Ryan Barath? Anyone heard anything from him? I kinda figured him being on staff was the beginning of the end for Matty.

[leftycabe]

As a small business owner, the last two years has been very difficult to navigate. I can only imagine how difficult things were/are for them with Canada’s Covid policies, etc. 

 

My first thought was that I didn’t like this and hated to see Matty leave. That being said, Ian has built up a lot of personal and professional brand equity with me and many others that it is worth giving him the benefit of the doubt. I would assume he has done the right things for the right reasons. We can all speculate why this happened but the reality is that it’s none of our business and TXG doesn’t owe it to us to give all the details, etc. 
 

Not that it matters but I still plan to support them and the channel but will naturally be looking for changes and CC influences. Most of all, I really hope Matty finds a way to use his talents and is fulfilled. Struggling with depression is not easy and I really hope he finds success in whatever his next chapter may be. I wish our company had enough money to hire him!

[dmeeksDC]

19 minutes ago, cleverprimate24 said:

Full disclosure, I only had the Cafe du Monde beignets in the airport, but I thought they were mediocre/barely edible. Basically a glorified funnel cake. 

 

Best part of the experience was the powdered sugar all over the carpet at various seats just away from CDM. 

 

Note: New Orleans was an awesome time, loved the "CBD" area, lots of great restaurants. 

Yeah, you’re asking for it if you get them at the airport. You gotta get them hot. And the waiters are the best.

[Flip4000]

41 minutes ago, TheBear95 said:

Club Champion didn't purchase TXG to have them expand into the US. Club Champion is already here. Makes zero sense.

The value in TXG is the brand perception among consumers, Ian, and YouTube channel. 
 

Club champion is in the US but doesn’t have the same reputation. There is a crowd that would never get fit at a CC but might consider a TXG location under the CC umbrella depending on what changes they make TXG.

 

we won’t know much until TXGs vid tomorrow 

 

but you are right, TXG is probably a better op for CC to stick a toe in the Canadian market vs the other way around 

 

Edited January 11, 2022 by Flip4000

[anth]

What’s the standard non compete duration in these scenarios? Company I work for got acquired by a behemoth and both founders were gone between 12 and 24 months respectively.