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NEWS FLASH - Titleist/FootJoy To Be Sold Or Spun Off!


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Cobra was first with the sale of Puma now possibly Titleist and Scotty will be sold off separately as well.

 

From what we have heard from an incredible source the two names that almost go hand and hand could soon be apart and on their own. Titleist has had many rumors in the past years about either being sold off or becoming its own company one separate from Fortune Brands. And now we are hearing that they are looking to sell both of them off as separate pieces.

 

The names we are hearing are incredibly Nike and Adidas.

 

Bob Bettinardi and Bobby Grace have gone back on their own this year, and Clay Long even if not well known has been on his own for years. Scotty Cameron certainly has built a good enough reputation to do the same if a contract with Titleist expired or was cancelled. Why would he sign on with another brand when being on his own would afford him total creative freedom and better control of pricing and manufacturing? Scotty doesn't need a Nike or TMAG to help promote and market his stuff, everybody knows him in the golf world, and going on his own would afford him much greater profit margins!

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Bob Bettinardi and Bobby Grace have gone back on their own this year, and Clay Long even if not well known has been on his own for years. Scotty Cameron certainly has built a good enough reputation to do the same if a contract with Titleist expired or was cancelled. Why would he sign on with another brand when being on his own would afford him total creative freedom and better control of pricing and manufacturing? Scotty doesn't need a Nike or TMAG to help promote and market his stuff, everybody knows him in the golf world, and going on his own would afford him much greater profit margins!

This made me think of Vokey. Where does he go? Can a small company, say Scratch or someone, pick him up now? Or is he packaged with Titleist. His name and rep could carry his own boutique too. Probably not able to meet demand on his own though.

 

His name is probably owned and branded by FB too...

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True he could absolutely go on his own...but Fortune Brands owns Scotty so it will depend on how they do the deal if it happens.

 

Bob Bettinardi and Bobby Grace have gone back on their own this year, and Clay Long even if not well known has been on his own for years. Scotty Cameron certainly has built a good enough reputation to do the same if a contract with Titleist expired or was cancelled. Why would he sign on with another brand when being on his own would afford him total creative freedom and better control of pricing and manufacturing? Scotty doesn't need a Nike or TMAG to help promote and market his stuff, everybody knows him in the golf world, and going on his own would afford him much greater profit margins!

#TruthDigest
 

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Man, I'm gone for a couple hours and I missed a lot. I'm not doubting the source at all, if you say he's reliable that's good enough for me, but it seems funny that they would sell off Titleist when they said in the Cobra sale announcement that they were going to focus on Titleist and Footjoy.

 

As far as Scotty, that's a really interesting bag of marbles. It seems like predictions of what he's going to do probably depend on your read of the man. He could go boutique and make high quality stuff, sell it at a very high price, control the process. He could go with Nike/TM, get a huge payday, and keep doing what he does now: sell lots of OTRs AND sell the high dollar custom putters.

Follow me on Twitter: @MattSaternus

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Man, I'm gone for a couple hours and I missed a lot. I'm not doubting the source at all, if you say he's reliable that's good enough for me, but it seems funny that they would sell off Titleist when they said in the Cobra sale announcement that they were going to focus on Titleist and Footjoy.

 

As far as Scotty, that's a really interesting bag of marbles. It seems like predictions of what he's going to do probably depend on your read of the man. He could go boutique and make high quality stuff, sell it at a very high price, control the process. He could go with Nike/TM, get a huge payday, and keep doing what he does now: sell lots of OTRs AND sell the high dollar custom putters.

Without knowing his books, I assume that while his work crafting things himself is on the tour side, the OTR pays the bills. Maybe a new owner would ask him to produce a lower cost OTR line. Probably not, but market share is market share.

Volvo Intorqueo

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This made me think of Vokey. Where does he go? Can a small company, say Scratch or someone, pick him up now? Or is he packaged with Titleist. His name and rep could carry his own boutique too. Probably not able to meet demand on his own though.

 

His name is probably owned and branded by FB too...

Bob would probably retire, he isnt in the best of health, and Ive heard he was retiring anyhow and was going to have his staff continue with the production

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Bob would probably retire, he isnt in the best of health, and Ive heard he was retiring anyhow and was going to have his staff continue with the production

That would seem like the best time to retire. His name would carry sales and many consumers would not realize that he had retired.

Volvo Intorqueo

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Well I trust they do want to focus more on Titleist the R&D costs and other costs involved with Cobra can now all go to Titleist...just because their is a sale does not mean they cannot focus on Titleist...I assume the new owner if something happens would not change to much wih regards to management with Titleist.

 

Man, I'm gone for a couple hours and I missed a lot. I'm not doubting the source at all, if you say he's reliable that's good enough for me, but it seems funny that they would sell off Titleist when they said in the Cobra sale announcement that they were going to focus on Titleist and Footjoy.

 

As far as Scotty, that's a really interesting bag of marbles. It seems like predictions of what he's going to do probably depend on your read of the man. He could go boutique and make high quality stuff, sell it at a very high price, control the process. He could go with Nike/TM, get a huge payday, and keep doing what he does now: sell lots of OTRs AND sell the high dollar custom putters.

#TruthDigest
 

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I find it interesting that Fortune Brands is looking to offload so much here all of a sudden. Obviously, the economy is affecting them in some manner or I wouldn't think they would be looking to break up Cameron and Titleist. I'd be interested to see how this pans out when it is all said and done.

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Well I trust they do want to focus more on Titleist the R&D costs and other costs involved with Cobra can now all go to Titleist...just because their is a sale does not mean they cannot focus on Titleist...I assume the new owner if something happens would not change to much wih regards to management with Titleist.

 

 

 

That's a good point, I hadn't thought of it that way.

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Wow....FB selling off both or either of them is....well....wow...just wow.

 

 

I find it interesting that Fortune Brands is looking to offload so much here all of a sudden.

It is my understanding that Titleist has been for sale for a number of YEARS. The timing of these deals is suspect, but the business world is a mess right now. From my small part of the golf business world, more conglomeration is a terrible thing. It forces the retailer to do business in a manner that the vendor dictates, not the other way around. more of a push system than a pull system. We are almost there now. Companies are dictating retail pricing and product flow to the market, not the market deciding what the true price of a new Taylor Made driver should be.

 

 

 

Sorry. Rant Over.

Driver -   :srixon-small: ZX 7 9.5° Ventus VeloCore Blue S
Fairway -  Tour Edge Exotics CB2 15° Grafalloy Prolite 35  S

Fairway - Tour Edge Exotics CB2 18° Grafalloy Prolite 35  S

Hybrid - :srixon-small: ZX 18° GD Tour IZ S

2 Iron - :srixon-small: ZU65 18° AeroTech SteelFiber 110icw S

Irons -  :srixon-small: ZX7  Aerotech SteelFiber 110icw  4-Pw 1° flat
Wedges - :cleveland-small: RTX Zipcore Raw 50° 54° 58°  TTGDTI S400 1° flat

Putters -   Cameron Phantom 5x/Odyssey Toulon Stroke Lab Austin/Odyssey 2 Ball DFX/ TaylorMade Spider
Tour Black/Ping Anser F/Scotty Cameron TeI3 Sole Stamp Newport 2. All with different grips, weights, and lengths.
 

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It is my understanding that Titleist has been for sale for a number of YEARS. The timing of these deals is suspect, but the business world is a mess right now. From my small part of the golf business world, more conglomeration is a terrible thing. It forces the retailer to do business in a manner that the vendor dictates, not the other way around. more of a push system than a pull system. We are almost there now. Companies are dictating retail pricing and product flow to the market, not the market deciding what the true price of a new Taylor Made driver should be.

 

 

 

Sorry. Rant Over.

Do you think that this will lead to more margin control like Ping's. Even the older models are still expensive. My understanding is that Ping says price it like this, or no Ping. Could the multi headed company push stores into carrying all parts of the line-up, Shoes, clubs (of all quality levels) and etc under threat of no product?

Bit early for that much gloom and doom, but you are in a larger shop. You see more than I do.

Volvo Intorqueo

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It is my understanding that Titleist has been for sale for a number of YEARS. The timing of these deals is suspect, but the business world is a mess right now. From my small part of the golf business world, more conglomeration is a terrible thing. It forces the retailer to do business in a manner that the vendor dictates, not the other way around. more of a push system than a pull system. We are almost there now. Companies are dictating retail pricing and product flow to the market, not the market deciding what the true price of a new Taylor Made driver should be.

 

 

 

Sorry. Rant Over.

 

 

As someone not involved in the golf business, but very interested in it, I appreciate your comments and would be interested to hear you talk more on this issue. Particularly, I am curious about your comment:

 

"Companies are dictating retail pricing and product flow to the market, not the market deciding what the true price of a new Taylor Made driver should be. "

 

Can you explain this a bit more? I understand the ways in which companies like TM can dictate pricing, but why/how is the markets voice drowned out? When you refer to "letting the market decide," is that more in reference to the end user or the store owner or both?

Follow me on Twitter: @MattSaternus

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I haven't read thru all the posts in this thread, but I have to wonder about titleist selling the Cameron name. My educated guess is that they own the name but don't own the man. He may be under contract but I wouldn't be surprised if he could go out on his own under a different brand name if push came to shove. I believe similar things have happened in the past with putter designers.

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Can you explain this a bit more? I understand the ways in which companies like TM can dictate pricing, but why/how is the markets voice drowned out? When you refer to "letting the market decide," is that more in reference to the end user or the store owner or both?

I am not an Econ expert by any stretch of the imagination, but here is my .02

When Manufacturer X releases a golf club, they dictate the retail price to the golf stores, under the threat of closing the store's account if the store does not abide by the pricing requirement. The club has an artificially inflated value, not subject to the supply/demand forces that take place in other markets. The consumer is forced to pay Company X's price for the club, until Company X decides to release another "better" club, and liquidates the remaining inventory on the market at a deflated price. The retailer is constantly fighting an "inventory battle" to keep just the right mix on hand. If a retailer has too many of a certain club left at the end of a cycle, because the club was priced too high initially, He is stuck tying to recoup his losses at a much later date, when discounted clubs have already hit the market.

Like I said, I am NOT an Expert. I just have opinions.

Driver -   :srixon-small: ZX 7 9.5° Ventus VeloCore Blue S
Fairway -  Tour Edge Exotics CB2 15° Grafalloy Prolite 35  S

Fairway - Tour Edge Exotics CB2 18° Grafalloy Prolite 35  S

Hybrid - :srixon-small: ZX 18° GD Tour IZ S

2 Iron - :srixon-small: ZU65 18° AeroTech SteelFiber 110icw S

Irons -  :srixon-small: ZX7  Aerotech SteelFiber 110icw  4-Pw 1° flat
Wedges - :cleveland-small: RTX Zipcore Raw 50° 54° 58°  TTGDTI S400 1° flat

Putters -   Cameron Phantom 5x/Odyssey Toulon Stroke Lab Austin/Odyssey 2 Ball DFX/ TaylorMade Spider
Tour Black/Ping Anser F/Scotty Cameron TeI3 Sole Stamp Newport 2. All with different grips, weights, and lengths.
 

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LOL

 

This is huge news. Honestly though, I could care less. No matter who he goes with, he'll be able to roll out his "Fine Milled Putters" under another corporate conglomerate's name without any problems.

 

And all the putters in the closet might give me more spending money.

 

 

Win/win I suppose.

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Blues and Oil cans are exactly where to start. already nice because only an oil can can be refinished in the studio shop in oil can.

 

 

I know of at least one other place that offers the oil finish. :)

 

If a split happened, Cameron would do very well on his own.

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I find it interesting that Fortune Brands is looking to offload so much here all of a sudden. Obviously, the economy is affecting them in some manner or I wouldn't think they would be looking to break up Cameron and Titleist. I'd be interested to see how this pans out when it is all said and done.

 

For a huge corporation like Fortune Brands, it is all about driving growth and shareholder value. Although Titleist is a great company, they are in a non-growth industry. Titleist has done a tremendous job staying profitable and keeping market share, but in the big picture there is not much room for growth since golf is declining, not growing these days. That is why Titleist would be better off as a stand alone business rather than part of a conglomeration. Fortune Brands also owns Jim Bean, Moen, etc... much larger industries than golf.

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I'd imagine one area Cameron has benefited from his association with Titleist is on the manufacturing side. If he goes on his own, then would he release less product every year?

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Callaway FT-9 Driver 9.0* Grafalloy Prolaunch Platinum

Cobra Baffler Rail F Fairway 15.5* Fujikura Motore

Wilson FYbrid 19* UST Proforce AXIV Core

Cobra Baffler Rail H Hybrid 22* Fujikura Motore

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I am not an Econ expert by any stretch of the imagination, but here is my .02

When Manufacturer X releases a golf club, they dictate the retail price to the golf stores, under the threat of closing the store's account if the store does not abide by the pricing requirement. The club has an artificially inflated value, not subject to the supply/demand forces that take place in other markets. The consumer is forced to pay Company X's price for the club, until Company X decides to release another "better" club, and liquidates the remaining inventory on the market at a deflated price. The retailer is constantly fighting an "inventory battle" to keep just the right mix on hand. If a retailer has too many of a certain club left at the end of a cycle, because the club was priced too high initially, He is stuck tying to recoup his losses at a much later date, when discounted clubs have already hit the market.

Like I said, I am NOT an Expert. I just have opinions.

 

Thanks, I appreciate getting your views on this. I definitely see how stores are getting stuck. My thought is that the customer still has the ability to say "$300 is too much for a driver," but I guess they don't.

 

I'd imagine one area Cameron has benefited from his association with Titleist is on the manufacturing side. If he goes on his own, then would he release less product every year?

 

That's a big part of the speculation going on here: will he tie in with a new OEM and continue to do OTRs or just be a boutique guy. My money is on getting with another OEM, IF he splits from Titleist.

Follow me on Twitter: @MattSaternus

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