Golfman7310 Posted May 28, 2020 Share Posted May 28, 2020 Question for you guys: How can TaylorMade, a golf equipment company that was purchased from Addidas a few years ago by a private equity group for the low price of $450 million dollars, afford to pay it's your staff of high profile players like DJ, JDay, Rory, Rose, and now Ricky to a ball & glove deal and still be profitable? I'd love to see their cost/profit/loss numbers, I'm assuming if they were a stand alone golf equipment company, they'd be lucky to break even. Any thoughts? Quote Link to comment
CarlH Posted May 28, 2020 Share Posted May 28, 2020 Easy, the pass the costs on to the consumers. tony@CIC, JohnSmalls and aerospace_ray 3 Quote Driver: Rogue ST Max (10.5* set at -1 and neutral) -- Mitsubishi Tensai Blue 55g R shaft Fairway: Rogue ST Max 3 wood (16.5*) and Heaven Wood (20*)-- Tensai Blue 55g R shaft Hybrids: Rogue ST Max 5H (23*)--Tensai Blue 55g R shaft Irons: Apex CF19 6-9, PW, AW -- KBS Tour Graphite TGI 70 shafts R +1/2 inch 3* upright Wedges: Edison 53* and 57* KBS PGI 80 Graphite +1/2 inch 2* upright Putter: L.A.B. DF 2.1 -- BGT Stability shaft Ball: Maxfli TourX...Golf Bag: Pioneer...Shoes: Hyperflex... Glove: Red Rooster Feather My Photography can be seen at Smugmug Link to comment
Golfman7310 Posted May 28, 2020 Author Share Posted May 28, 2020 There's only so much you can pass on while keeping prices in line with their industry competition. Just look at PXG, there's another company that wouldn't exist if it wasn't owned by a billionaire. If either company were publicly traded, they'd be done by now. Quote Link to comment
null Posted May 28, 2020 Share Posted May 28, 2020 7 hours ago, Golfman7310 said: Question for you guys: How can TaylorMade, a golf equipment company that was purchased from Addidas a few years ago by a private equity group for the low price of $450 million dollars, afford to pay it's your staff of high profile players like DJ, JDay, Rory, Rose, and now Ricky to a ball & glove deal and still be profitable? I'd love to see their cost/profit/loss numbers, I'm assuming if they were a stand alone golf equipment company, they'd be lucky to break even. Any thoughts? Rose isn't on their staff But some guy named Tiger Woods is tony@CIC, sirchunksalot, RickyBobby_PR and 1 other 2 2 Quote Link to comment
RickyBobby_PR Posted May 28, 2020 Share Posted May 28, 2020 7 hours ago, Golfman7310 said: There's only so much you can pass on while keeping prices in line with their industry competition. Just look at PXG, there's another company that wouldn't exist if it wasn't owned by a billionaire. If either company were publicly traded, they'd be done by now. PXG is profitable. In late 2018 or early 2019 they made back the money invested in the startup of the brand. Parsons then passed that on to the consumer by lowering the cost of their drivers. That aside it usually takes someone with a lot of money to open a golf business without financial backing from other sources. So what if he is a billionaire or if it was 10 multimillionaires that started Pxg? Titleist and Callaway are pulling in billions of dollars so it’s not too hard to guess that Taylormade is making hundreds of millions or billions especially when they have a nice share of the woods market and iron market share sirchunksalot and JohnSmalls 2 Quote Driver: PXG 0811 X+ Proto w/UST Helium 5F4 Wood: TaylorMade M5 5W w/Accra TZ5 +1/2”, TaylorMade Sim 3W w/Aldila rogue white Hybrid: PXG Gen2 22* w/AD hybrid Irons: PXG Gen3 0311T w/Nippon modus 120 Wedges: TaylorMade MG2 50*, Tiger grind 56/60 Putter: Scotty Caemeron Super Rat1 Ball: Titleist Prov1 Link to comment
tony@CIC Posted May 28, 2020 Share Posted May 28, 2020 1 hour ago, RickyBobby_PR said: PXG is profitable. In late 2018 or early 2019 they made back the money invested in the startup of the brand. Parsons then passed that on to the consumer by lowering the cost of their drivers. That aside it usually takes someone with a lot of money to open a golf business without financial backing from other sources. So what if he is a billionaire or if it was 10 multimillionaires that started Pxg? Titleist and Callaway are pulling in billions of dollars so it’s not too hard to guess that Taylormade is making hundreds of millions or billions especially when they have a nice share of the woods market and iron market share Keep in mind that there's a huge difference between sales and profits. As an example see link to this past quarter's sales and earnings release. https://finance.yahoo.com/news/acushnet-golf-q1-earnings-revenues-115511036.html JohnSmalls 1 Quote Left Hand orientation SIM 2 D Max with Fujikura Air Speeder Shaft Cobra Radspeed 3W/RIptide Shaft 410 Hybrids 22*, 26* Cobra Speed Zone 6-GP/Recoil ESX 460 F3 Shafts SM7 54* Wedge Glide 3.0 60* Wedge O Works putter V3 NX9-HD - 4 Wheel EZGO TXT 48v cart - too many shoes to list and so many to buy And BAG Boy Golf Balls: Vice Pro Plus 2020 Official Tester Beginning Driver Speed - 78 2019 Official Tester 410 Driver 2018 Official Tester C300 Link to comment
SmoothG Posted May 28, 2020 Share Posted May 28, 2020 Geez I thought this was more than the ball/glove deal when I read the title. I was like NO WAY COBRA/PUMA would let him go! Quote Cobra SpeedZone 9* TourEdge EXS 18* TourEdge C721 22*H PXG 0211 DC 6-P + G Cleveland Zipcore Full Face 52/58* Wilson Staff Infinite Michigan Ave Taylormade Tour Response Link to comment
Titleist87 Posted May 28, 2020 Share Posted May 28, 2020 1 hour ago, SmoothG said: Geez I thought this was more than the ball/glove deal when I read the title. I was like NO WAY COBRA/PUMA would let him go! The ball switch happened some time ago. But he OPs original post said nothing to the extent of what Rickie has done. Are you saying that the point of this thread is Rickie only switching balls and glove? Quote Fly Z+ UST Proforce V2 Black Golfsmith Jet Stream 3W UST Proforce V2 915 H3 Diamana Red 915 H4 Diamana Red Apex Edge Pro UST Recoil Dart Vokey SM6 50F/54S/58S Aerotech SteelFiber Huntington Beach 11S Pro V1 Bag Boy Chiller Bag Boy Quad XL Link to comment
SmoothG Posted May 28, 2020 Share Posted May 28, 2020 7 minutes ago, Titleist87 said: The ball switch happened some time ago. But he OPs original post said nothing to the extent of what Rickie has done. Are you saying that the point of this thread is Rickie only switching balls and glove? I was saying that when I read the title, I thought it was breaking news that I somehow missed. Also the OP does indeed speak on Rickie and his ball/glove deal. Quote Cobra SpeedZone 9* TourEdge EXS 18* TourEdge C721 22*H PXG 0211 DC 6-P + G Cleveland Zipcore Full Face 52/58* Wilson Staff Infinite Michigan Ave Taylormade Tour Response Link to comment
RickyBobby_PR Posted May 28, 2020 Share Posted May 28, 2020 20 minutes ago, Titleist87 said: The ball switch happened some time ago. But he OPs original post said nothing to the extent of what Rickie has done. Are you saying that the point of this thread is Rickie only switching balls and glove? Yeah that happened back in January. 12 minutes ago, SmoothG said: I was saying that when I read the title, I thought it was breaking news that I somehow missed. Also the OP does indeed speak on Rickie and his ball/glove deal. The title and the op do conflict a bit. He mentions rickies deal kind of in passing and like it’s breaking but the main point of his post is his being puzzled by taylormade’s financials. Quote Driver: PXG 0811 X+ Proto w/UST Helium 5F4 Wood: TaylorMade M5 5W w/Accra TZ5 +1/2”, TaylorMade Sim 3W w/Aldila rogue white Hybrid: PXG Gen2 22* w/AD hybrid Irons: PXG Gen3 0311T w/Nippon modus 120 Wedges: TaylorMade MG2 50*, Tiger grind 56/60 Putter: Scotty Caemeron Super Rat1 Ball: Titleist Prov1 Link to comment
heavygolffeels Posted May 28, 2020 Share Posted May 28, 2020 Bad title. I was like no way, I just saw some brand new Cobra prototypes for him. Yes, the ball deal. That is old news. He actually switched to the TP5x in early 2019. btw, i dont imagine ball/glove deals are that expensive. especially since Ricky came to them for the deal. He wanted to play the ball, and any way to monetize or brand it was gravy. as far as TaylorMade's line up of pros. It is impressive. But not unfathomable. Their revenues are 3X that of Cobra and Ping. They are 50% bigger than Ping and Cobra combined. Imagine those two combined staffs with Bubba, Finau, Cameron Champ, Fowler, Bryson, Dufner. Impressive group with less revenue. SmoothG 1 Quote GARSEN GRIP TESTER Driver: PING G400 MAX, Ventus Blue 6x Woods: COBRA F6 Baffler AD DI 8S Hybrid: CALLAWAY Apex Pro, Ventus Blue 8s Irons: SRIXON ZX5 mk2 5-6, ZX7 mk2 7-PW, Modus 120x Wedges: EDEL 50 C grind, 54 V grind, CLEVELAND 60 RTX6 Low Putter: YES Abbie! Link to comment
juspoole Posted May 28, 2020 Share Posted May 28, 2020 2 hours ago, SmoothG said: I was saying that when I read the title, I thought it was breaking news that I somehow missed I thought the same thing! I thought, holy hell, this is huge if Cobra loses "the guy" Miboy62 and SmoothG 2 Quote Driver: Mavrik Sub Zero 9* (Set to 10) Ventus Blue 6X 2 Hybrid: TSI3 Hybrid Tensei Blue 80 X (17.25*) 3 Hybrid 818 H2 Hybrid Hzrdus RDX Black 6.5 (20.5*) 4 Iron - T200 4 Iron Graphite Design Tour AD IZ X Hybrid Shaft Irons 5-PW: T100-S 5 - GW KBS Tour 130 X Gap/Sand Wedge: Vokey SM6 49* SM8 54* Lob Wedge: Jaws 5 Wedge 58* DG Tour Issue Stiff Putter: Phantom 5.5 34" Pro Platinum Newport 2 35" Taylormade Tour Black Spider 34" Link to comment
Golfman7310 Posted May 29, 2020 Author Share Posted May 29, 2020 Sorry for the wrong wording on the subject title guys, I was reading about 2020 player equipment switches and was thinking out loud, I didn't mean to make it sound like it just happened yesterday. Quote Link to comment
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