State Of The Big Businesses Surrounding Pro Golf
Recent earnings and lagging technology highlight a need to reassess a pre-pandemic vision of streaming and gambling on every shot.
Now that we have full reassurance Pat Perez is set for life following years of service to the game, it would be easy to forget about the other 90% of America’s $85 billion golf economy. So what better time to check in on the pre-pandemic vision of golf to see where things are headed?
The pre-Saudi/LIV “vision” went something like this:
More athletic players would drive younger audiences to watch and stream telecasts.
The infusion of youth would rely on mobile devices to bet on every shot shown by broadcasters. And at some point when sports betting legalization came to tournament apps, everyone could watch and bet at the same time.
Motivated by this modern and interactive re-imagination of golf viewing, fans would also buy expensive equipment the pros play.
Advertisers would flock to this youthful product and golf would finally overcome the horror of being seen as a lifetime game only played by residents of The Villages.
If anyone dared mention rolling back the ball, paid FanBros would take to social media to assert that distance gains were fueled entirely by athleticism and agronomics (so leave their Sugar Daddies alone).
How’s that vision going?
The pandemic created an unprecedented window for selling equipment to new or rejuvenated golfers who were enjoying new work schedules and a greater appreciation for the outdoor qualities of golf.
It’s become a brutal time for advertising-reliant businesses unless they have tournament partnerships where ad time must be purchased (the PGA Tour model).
The streaming wars offer a huge mixed bag for golf’s biggest partnerships. Consolidation is probably coming sooner than expected and still loads of questions about when it will function as well as cable television.
The betting dream has gone from a sure thing to a TBD-outlook as losses mount and the infrastructure is years away from serving up the option to live bet. California is likely to overwhelmingly nix two ballot initiatives on Tuesday, meaning it’ll be years before the Golden State and its 40 million residents are in the mix.
Thanks to recent financial disclosures, we can get a sense of exactly how things are going for manufacturers, media companies and sports betting operations.
Manufacturers
Buoyed by golf’s pandemic bounce and solid management of supply chain issues, the golf manufacturers dropped some mighty impressive numbers on Wall Street last week. The profits are especially amazing given that the robust numbers are not due to any kind of breakthrough technology, but instead, thanks to overwhelming demand thanks to a thriving sport. Something to keep in mind when rule changes are proposed and they cry wolf. Again. Yawn.
Callaway
Tweets are going to do the storytelling for a company that includes Topgolf, Travis Matthew and Jack Wolfskin among its many revenue sources:
Acushnet
Flash From The City: when golf is popular, people buy golf balls. When people have less free time or flexibility in their schedules, they buy fewer golf balls.
