TaylorMade Sold? - That's the Rumor!

[GolfSpy Barbajo]

Saw this on both Facebook and Twitter this morning, courtesy of that Muckraker of a golf journalist, GalfSpy T....

 

 

Has @TaylorMadeGolf already been sold? We are hearing yes. Do you think this will be good for the brand? pic.twitter.com/Kl205WrMUM

— MyGolfSpy (@MyGolfSpy) January 17, 2016

Could it be? Can it be? What in the name of the Pittsburgh Persimmon does it all mean?

[furu]

Hasn't the adidas group been looking for buyers for a long time? Openly blaming TM and the golf division for their poor results said it all. If something happens, it's probably quick and painless for everyone.

[GolfSpy Barbajo]

Hasn't the adidas group been looking for buyers for a long time? Openly blaming TM and the golf division for their poor results said it all. If something happens, it's probably quick and painless for everyone.

 

Only bad news would be if it's bought by that nameless "Investment Group."  Those are the guys that killed MacGregor, the original Hogan and others...

[furu]

True. And not unlikely. 

 

Alternatives;

UA?

Investment group?

Big Asian company that makes tires or sports apparel?

 

Or maybe Parsons buys them because he wants to use the speed pocket

[GolfSpy Barbajo]

It'll be interesting to see if/how/when they change their strategy without adidas behind them. UA is an interesting idea - and it would make a crap-ton of sense.  

[apprenti23]

It would be absolutely dumbfounded if TM was bought buy Under Armour. Makes no sense to me whatsoever.

[jaskanski]

It would be absolutely dumbfounded if TM was bought buy Under Armour. Makes no sense to me whatsoever.

 

Agreed. Not only do UA not have enough collateral to buy TMag in the first place, but even if they did, buying a company in the middle of a global sales decline would be suicide.

[furu]

Yes. You should never buy in times like these. Always buy on top. Companies who want to buy TM should wait till golf is more popular and sales are up. 

[GolfSpy Barbajo]

Yes. You should never buy in times like these. Always buy on top. Companies who want to buy TM should wait till golf is more popular and sales are up. 

 

Unless it's a bargain -- always buy a bargain.  

[Mr_Theoo]

It would be absolutely dumbfounded if TM was bought buy Under Armour. Makes no sense to me whatsoever.

It made some sense to me a couple a years ago before speith exploded onto the scene.

[dru_]

It made some sense to me a couple a years ago before speith exploded onto the scene.

 

It still makes sense, but not the way people presume. UnderArmour is a fascinating brand in a lot of ways. People forget that UA themselves basically came from out of nowhere to a point where they are beating Nike at it's own game in several markets. You know, the same Nike that is quietly becoming a powerhouse in golf. One that has surpassed some pretty stout names in golf.

 

To a certain degree, UA could buy TM for the sole purpose of completing a portfolio to go head to head against Nike, but I don't think that would be the purpose.

 

At the end of the day, UA is a marketing powerhouse wrapped around performance sports equipment manufacturer. TM is a good fit in terms of personality and identity, and it creates some opportunities that UA has struggled with.

 

Yeah, Speith is an UA guy, but they've struggled to make real inroads in the golf apparel market, and it's not because the product isn't there.

 

but here is the thing, that to me, makes this intriguing.  UA is *also* a technology company. They not only want to sell you the equipment, they want you tracking the activities and metrics and uploading them to their platforms. Lest you forget UA is also, MapMyFitness(Run/Bike/Walk/etc), EndoMondo, and MyFitnessPal. UA has deals in place for hardware (scales, fitness trackers, etc). They are quietly building a patent portfolio for a broad spectrum of wearables (Heart Rate Monitors in hats, bras, etc.  strain gauges in shirts and shorts).

 

Let's face it, over the last 5 years, they have not been shy about spending to get what they want, but have rarely 'overspent'. 

 

So, no, UA wouldn't stun me, I can see a lot of potential in that deal, but at the same time, I think there is another suitor out there, that just might be even more interesting, and I think if that deal happens, there will be some consternation out there. Short version, I think it is an investor group. 

 

Theoo and I have had this conversation a couple of times over the last couple of years, and I've never wavered on it. At some point, UA *is* going to get serious about the golf equipment business (not just OEMing other peoples equipment). The questions are, when, and will they do it under their own branding.

[Mr_Theoo]

It still makes sense, but not the way people presume. UnderArmour is a fascinating brand in a lot of ways. People forget that UA themselves basically came from out of nowhere to a point where they are beating Nike at it's own game in several markets. You know, the same Nike that is quietly becoming a powerhouse in golf. One that has surpassed some pretty stout names in golf.

 

To a certain degree, UA could buy TM for the sole purpose of completing a portfolio to go head to head against Nike, but I don't think that would be the purpose.

 

At the end of the day, UA is a marketing powerhouse wrapped around performance sports equipment manufacturer. TM is a good fit in terms of personality and identity, and it creates some opportunities that UA has struggled with.

 

Yeah, Speith is an UA guy, but they've struggled to make real inroads in the golf apparel market, and it's not because the product isn't there.

 

but here is the thing, that to me, makes this intriguing. UA is *also* a technology company. They not only want to sell you the equipment, they want you tracking the activities and metrics and uploading them to their platforms. Lest you forget UA is also, MapMyFitness(Run/Bike/Walk/etc), EndoMondo, and MyFitnessPal. UA has deals in place for hardware (scales, fitness trackers, etc). They are quietly building a patent portfolio for a broad spectrum of wearables (Heart Rate Monitors in hats, bras, etc. strain gauges in shirts and shorts).

 

Let's face it, over the last 5 years, they have not been shy about spending to get what they want, but have rarely 'overspent'.

 

So, no, UA wouldn't stun me, I can see a lot of potential in that deal, but at the same time, I think there is another suitor out there, that just might be even more interesting, and I think if that deal happens, there will be some consternation out there. Short version, I think it is an investor group.

 

Theoo and I have had this conversation a couple of times over the last couple of years, and I've never wavered on it. At some point, UA *is* going to get serious about the golf equipment business (not just OEMing other peoples equipment). The questions are, when, and will they do it under their own branding.

I agree with all of that.

[apprenti23]

People forget that UA themselves basically came from out of nowhere to a point where they are beating Nike at it's own game in several markets. You know, the same Nike that is quietly becoming a powerhouse in golf. One that has surpassed some pretty stout names.

Is this your opinion or is UA actually surpassing Nike in several markets? That would be very interesting to me.

 

Nike becoming a powerhouse in golf is definitely your opinion and one that is not shared by many at all. I find the exact opposite happening. In my experience, and from what I've seen, Nike is struggling in the hard goods arena in golf. They always have, even with golf's GOAT and the most marketable athlete of all time, too. Golf hard goods are a tough nut. In 15 years, Nike has continually failed in my eyes. Sure, they have a tour presence, but the ratio from TM-Nike or Callawa-Nike sales has to be almost laughable.

[Dave]

Who in there right mind buys a golf company at the moment. Let alone TM, Adidas aren't going to let it go cheap.

[fozcycle]

Maybe that is why PowerBilt & Air Force One parted ways, so Hillerich & Bradsby could buy Taylormade......LOL

[GolfSpy Barbajo]

Maybe that is why PowerBilt & Air Force One parted ways, so Hillerich & Bradsby could buy Taylormade......LOL

Well, they don't have that Louisville Slugger brand dragging them down anymore

[Kenny B]

I have a couple of TM clubs in my bag at the moment and my wife's bag is all TM except for the putter.  However, I passed on buying TaylorMade because the timing isn't right.