What the TMAG Purchase of Adams Could Mean for the Other Golf Companies

[Tony Covey MGS]

I was driving home from doing a little club testing this morning and I got to thinking about what the sale of Adams to TaylorMade could mean for the other golf companies. It's not like I have any detailed knowledge about the inner-workings of any of these companies, but it sure is fun to speculate a little bit.

 

Largely Unaffected

 

Titleist - My read on Titleist is they tend to stay above the fray. They've been doing things their own way for quite a while now, and that's not going to change. While I don't think they gain anything from the sale, they certainly don't lose any ground either. Granted, the Penta is probably the most likely challenge to Titleist's #1 status in the golf ball market, but that was the case before TaylorMade bought Adams.

 

PING - Sort of like Titleist on steroids. Sometimes it is as if PING is marching to music nobody else can hear. They really are the industry's quiet little rebel (who else manufactures their own shafts - and has a product that rivals many aftermarket offerings?). TaylorMade could buy everyone in the industry and I suspect absolutely nothing would change at PING.

 

Cleveland - The company seems a little lost since the new groove rule kicked in, but the Classic Driver finally has people talking about something other than wedges. As far as the Adams deal goes...it's likely inconsequential for Cleveland.

 

Wilson - Cleveland...with better irons.

 

Missed Opportunity

 

Bridgestone - We heard some very interesting rumors that Bridgestone was going to make one hell of a power play. Had it panned out they would have been positioned like none other to make a serious run at the TaylorMade Empire. Ultimately, missing out (assuming the rumors were true) doesn't really hurt Bridgestone. They simply go back to being primarily a ball company that happens to make some really good, and largely unappreciated gear. Still...it could have been fun. Giddyup Deon!

 

Dodged a Bullet

 

Cobra-PUMA - Hard at work at their own innovation story of sorts (creating a demographic around the Rickie Fowler generation), the last thing Cobra-PUMA needed would have been another trendy apparel company jumping into the equipment business. One of the potential buyers of Adams would have done just that. With that threat out of the way, Cobra remains free to concentrate their efforts on carving their own niche. And from what I've seen, they've tapped into a demographic with enough money, and fierce loyalty to make it work. I've got a soft spot for these guys, and I sure hope it works.

 

Potential Net Gain

 

Nike - The big keep getting bigger, and the innovative little guys keep getting gobbled up. There's a completely different vibe at Nike than at TaylorMade (even if the commercials are practically indistinguishable). Much of their product line is as good as anybody else's, and with the smaller guys disappearing, Nike may find itself cast as the anti-TaylorMade. They won't outsell TaylorMade, but being considered the best alternative wouldn't be half-bad either.

 

TourEdge - With Adams now under the TMAG umberella, TourEdge has the best opportunity to seize Adams's place as the lovable little guy. Their fairway woods already have the reputation (even if the lack of a slot gives the impression they've fallen behind the curve). The drivers and hybrids have serious potential as well. Their wedges are solid...though perhaps not well-marketed. They'll need to step up their iron game quite a bit, but the castoffs from the cult of Adams are going to need somewhere to go, and TourEdge might be able to bring some of them into the fold.

 

Callaway - What's true for Nike is also true for Callaway. More than ever they've been cast as the anti-TaylorMade. The product is excellent (though their irons for low handicap golfers probably need a tweak or two). Adams made it is far as it did do in large part to Chip Brewer's influence. Now he's running the show at Callaway, and hopefully some of the innovative spirit follows him to Carlsbad. Toss in the fact that America loves a comeback story, and the Adams sale has the potential to be a big win for Callaway.

 

Winner, Winner Chicken Dinner

 

Mizuno - If you talking about major OEMs producing sub $1000 irons, Adams was basically the only company competing with Mizuno. Yeah...the other guy's stuff is always going to sell (marketing, marketing, marketing), but if you follow the threads here, and on the main site, you've seen an astounding number of golfers whose choice in irons ALWAYS boils down to Mizuno or Adams, Adams or Mizuno. They both make a truly exceptional iron product that is a cut above most anything else in the marketplace (particularly in the mid-low handicap space). Toss in the underdog factor (and a general disdain some feel towards the huge OEMs), and you'll fine an army golfers who have a rabid loyalty that was often split between the two brands.

 

With Adams effectively gone (and with TaylorMade threatening to position them as the mid-high handicap arm of the company), the guys who were torn between the brands, and the guys who actually preferred Adams, are almost certainly going to bump Mizuno to the top of their list.

 

What do you guys think. Apart from Adams and TaylorMade, who are the winners and losers in this deal?

[GolfSpy WD]

I can definitely see Tour Edge filling in the Adams gap, but they have a long way to go. Their CB4 series is really nice looking and based on reviews perform at least as well as the rest, but their irons are downright ugly.

 

Mizuno has the opposite problem, their irons are fantastic, but I couldn't name a single one of their drivers without googling them.

 

Adams was the whole package, with very competitive putters, wedges, irons, hybrids, and woods. The only other companies that could match that lineup are TM, Titleist, Ping, and Callaway. Other brands do have the whole array of clubs, but I'm talking about reputation here, at least as I see it.

 

So instead, I'd pick winners based on club type:

 

Woods/Hybrids - Tour Edge

Irons - Mizuno

Wedges - Titleist/Cleveland

Putters - Titleist/Callaway

[Tony Covey MGS]

I can definitely see Tour Edge filling in the Adams gap, but they have a long way to go. Their CB4 series is really nice looking and based on reviews perform at least as well as the rest, but their irons are downright ugly.

 

Mizuno has the opposite problem, their irons are fantastic, but I couldn't name a single one of their drivers without googling them.

 

Adams was the whole package, with very competitive putters, wedges, irons, hybrids, and woods. The only other companies that could match that lineup are TM, Titleist, Ping, and Callaway. Other brands do have the whole array of clubs, but I'm talking about reputation here, at least as I see it.

 

So instead, I'd pick winners based on club type:

 

Woods/Hybrids - Tour Edge

Irons - Mizuno

Wedges - Titleist/Cleveland

Putters - Titleist/Callaway

 

You're definitely right that Mizuno won't be able to fill much of the void the sale leaves in the Woods and hybrid market, but...Mizuno is all about irons and wedges. I'm fairly certain everything else is secondary.

 

And while many of us are lamenting the possible loss of Adams hybrids and woods, the reality is that as much as we may love the product, they're are viable alternatives (and I don't see TM simply killing off the technology). The reason why I think Mizuno stands to gain the most is that Adams, at least in terms of quality and loyalty, was its closest competitor. Not only do they benefit from the loss of competition, but unlike is often the case in other segments, the guys who love Adams, don't hate Mizuno...most really like Mizuno too. While other companies will likely claim bits and pieces of what was Adams's hybrid and woods marketshare, Mizuno stands to gain a very high percentage of what would have otherwise been Adams's share in the iron market.

 

As for wedge...Adams was never a serious player there, so I don't think anybody wins or looses as a result (as you suggest, it remains Cleveland and Titleist).

 

Putters are interesting...I suspect the Yes! brand will, at least in the short term, be the most unaffected by the buyout. Perhaps the TaylorMade piece will turn people away, but I don't necessarily see them all moving to the same alternative brand.

 

 

[GolfSpy WD]

I'm just partial to the Tom Watson wedges. I've never hit them, but if I were to buy from one of the big OEMs, they'd be the first wedge I look at. I don't mind having some TM clubs in my bag if they decide to keep that lineup though, which I hope they do. The ATV wedges are pretty stupid IMO.

 

As for Mizuno taking the biggest bite of the irons market, one of the issues there is looks. Mizunos are classy, very nice irons. Adams were known for the black looks, which was really cool IMO. I really have no idea who would fill that gap.

[GolfSpy Barbajo]

Agree that Mizuno is the big winner -- however...

 

Now instead of their chief competitor being small little Adams, they've got to deal with big ole TM, if TM is smart enough to use Adams technology to make their player's irons better. Could look at it as the same competition with more money and a new name...

 

Again, if TM is smart, the Adams technology, design, R&D, engineering, etc isn't going to go away -- it's just going to change uniforms. Sorta like Peyton going to Denver...

[AuGoGo]

I agree that Mizuno may be well placed to pick up the disgruntled Adams low-mid handicap players.

 

My Adams A4 have been in the bag for 2 years and are not going anywhere soon, but I always thought I would replace them with Adams as I have liked the look of their updates - A12, CB2 & 3 etc.

 

When I do need them, my next set of irons may well be Mizuno, but if I needed a set tomorrow (and Adams were out of the picture) I would look at the i20's from Ping or the J40 pocket cavities from Bridgestone.

[Matt Saternus]

Interesting that you don't see any of the OEMs as losers (outside of a missed opportunity)...though I don't know that I disagree with your assessment. TMAG is already perceived as the leader in technology/performance/etc by the "average" golfer. If acquiring Adams makes them the true undisputed leader in technology...does it matter, since they're already seen that way?

 

Hard to believe that the acquisition of Adams will significantly boost their market share. Seems to me that, as was said in the blog post and the other thread, this was more about killing the competition before they really stepped up to the plate. Not sure that it really has any negative impact on the competitors that are still kicking.

[RoverRick]

You said that Nike and TMags ads were the same, look closely at the new Nike irons (GI) vs the RBZ from TMag. Looks very simular to me. At least in the catalog.

 

And as far as Mizuno Drivers and fairway woods, their number one guy, No, 1 in the world again, does not even play there big sticks.

[Kanoito]

I know a lot of people who were pretty unhappy with this move.

They bagged the R11's, RBZ, etc... but they refuse to buy TM's branded Adams irons.

 

So yeah, TM is big enough and already seen as the leader, but I'm sure a big part of the consumers will opt for the underdog or just for the sake of opposing to this purchase.

[JMiller]

I think that there are two main groups of people Pro-Adams (I am for drivers, fairways, hybrids) or Pro-TM (nothing here for me personally) there is not a mix between them of golfers that play both. People that play Adams rarely want to pick up a TM club (they might just to try it out to compare with Adams) and people that play TM espesually don't want to pick up a Adams, Callaway, Titleist, etc. A lot of TM players will not even try out a different brand, now that is GREAT marketing there have to give TM credit on that.

 

This is under the assumption that TM does not do what they say they will in keeping the identity of Adams not killing it off, when they really do intend on killing it (probably in 3-5 years this could be true)

 

Adams Drivers --> Well I have a guess that not a lot of people are gonna want to hit a white crown TM that play these currently. I think people will spread out on this area. I am in this boat I have no idea where I am going to land once I go to replace my Adams Speedline Fast 12 LS. This is probably going to be a hard sell for me for a long period of time.

 

Adams Fairways / Hybrids --> This is where I think there is the biggest following of the Adams product. Especially the hybrid line since that's really where Adams had a choke hold. I think it will depend on if you want distance or control. If you can get over a white crown (which i just can't) then probably TM, however if you want control you will look at Tour Edge Exotics a lot more, I already play old lines of Tour Edge Exotics great clubs for control and still have a hot enough face for me.

 

Adams players CB irons --> Mizuno CB Clubs that I completely agree with, I think people will love the Mizuno line over a lot of other lines out there if they currently play Adams a12, Adams CB1, Adams CB2, Adams CB3.

 

Adams Blades (MB, MB2) --> Well this is a different market all together. MB had a great offset but it's not progressive and an old product. MB2 has progressive offsets and they are HUGE for a blade, larger then the Titleist AP2 Players CB I had before my new set of W/S FG62. I have a review on this but I really think this was the weakest part of the Adams line up for people that truly looking for a blade. The MB2 was a GREAT blade for mid-capers. The MB2 is not a great blade for the low one that misses with a hook, too much offset for that type of player. Think people in the MB2 that like the offset will go into a Players CB instead of a blade if they know that the offsets are large on the set of course.

 

Adams Wedges --> They didn't have a foot hold in the market at all for wedges. I don't know that many people that have Adams wedges that are into equipment. The people that do probably bout the set of three Tom Watson wedges in the box, you can just stamp that TM and have the same price and get that market. Majority of better players that might have been playing Adams wedges probably go into Vokey, Cleveland, Scratch, Mizuno. Or even the less known ones Fourteen, Scor, Miura, etc.

 

YES! Putters --> I personally like these putters once they are fit properly, they have a high MOI which some people will be turned off by. If this company goes under then Scotty Cameron will probably start getting more business and have even more of a license to print money. God people paying $1000 plus for putters stamped G.S.S. Example --> http://compare.ebay.com/like/330700511036?var=lv&ltyp=AllFixedPriceItemTypes&var=sbar&_lwgsi=y&cbt=y

 

I think that Bridgestone is probably an OEMs that came out as a big loser in the deal. They don't have a strong equipment market and honestly they have a hard time getting the Titleist Pro V1/x players to even try their ball. I don't know of hardly any stores that even have Bridgestone on the self for you to look at and test. Majority of people now a days go into golf stores to TEST equipment then go and buy it online to save a little money. So I think that Bridgestone really got hurt on this deal in terms of breaking into the equipment market other then the golf ball.

 

My Big winner for the "average" golfer --> TMaG

My Big winner for Players CB & MB2 --> Mizuno

My Big winner for wedges --> toss up really

My Big winner for YES! Putters --> Hard saying depends on which model you have, I have the Callie which is a 355g head & 304 stainless. I would be looking at the new Select series from Scotty Cameron if I were to be in the market for a putter. The Scotty are 303 Stainless and have weights in the bottom to change the over all weight of the head. I like something right around 350g

[MmmmmmBuddy]

IMO,the biggest loser in this whole thing is the consumer. When any large corporation buys a smaller innovative competitive company to "incorporate the technology", all that is happening is a slowing down of technology and death of competition. Competition is good for the consumer and good for business. Imagine that 10 years from now, all the golf clubs available to buy are from 3 manufacturers? Are you happy? What if in the future

It is not as far fetched as you might think.. Contraction is bad for YOU. In all aspects of consumerism. Competition leads to better products, better pricing, better service. Don't we all want that??

[GolfSpy WD]

IMO,the biggest loser in this whole thing is the consumer. When any large corporation buys a smaller innovative competitive company to "incorporate the technology", all that is happening is a slowing down of technology and death of competition. Competition is good for the consumer and good for business. Imagine that 10 years from now, all the golf clubs available to buy are from 3 manufacturers? Are you happy? What if in the future

It is not as far fetched as you might think.. Contraction is bad for YOU. In all aspects of consumerism. Competition leads to better products, better pricing, better service. Don't we all want that??

 

Unfortunately it sounds like Adams was going to be bought by *someone*, so regardless of who the eventual buyer was, this was always going to be true. The more I think about it though, I really do think Tour Edge could fill the void if they became more aggressive and if they put more effort into their irons.

[JMiller]

Unfortunately it sounds like Adams was going to be bought by *someone*, so regardless of who the eventual buyer was, this was always going to be true. The more I think about it though, I really do think Tour Edge could fill the void if they became more aggressive and if they put more effort into their irons.

 

Not exactly, if a clothing company had bought them (like the Adidas TM relationship) the company was going to keep on going business as usual. This would only happen if another OEM like TM, Callaway, Titleist, Nike, Wilson, Bridgestone, etc bought them instead.

 

I think that the better situation for the company would have been to get in with a major clothing company that is already in golf or wants to get into golf.

Cobra / Puma, Titleist / Foot-joy, TM / Adidas They all have associated other products with a larger parenting company that gives them marketing support.

 

The missing piece for Adams was a marketing budget IMHO, so if TM gives them that support and lets them run business as usual from engineering and design then i think we will see Adams golf become a lot larger company. However, I think most people fear that TMaG will just kill it off eventually.

[RoverRick]

Perry Ellis/Hogan Company or whatever they are going to be called could become a big winner in this. Hopefully, they are going to make more than "white ivy caps and gray slacks" with the Hogan name. If they are going to get back in the club business, there are going to be a lot of innovative Adams designers that have greater concerns about their future with Adams than before this happened. They are much more willing to make the jump to basically a start up company, be it a start up company with a great name and reputation, I guess it would be a restart-up company, than before when they were strickly an Adams employee.

 

Hogan has brand loyalty, I would go this afternoon to see their new club in person, and would probably take my beloved ZB irons to trade in on them if I liked them. When I first heard of the Perry Ellis purchase I wondered where they would get their club designers. The TMag purchase of Adams Golf makes a lot of designers, I have no idea how many there actually are, 2 or 200, but these people have to be greatly concerned.

[GolfSpy Barbajo]

Perry Ellis/Hogan Company or whatever they are going to be called could become a big winner in this. Hopefully, they are going to make more than "white ivy caps and gray slacks" with the Hogan name. If they are going to get back in the club business, there are going to be a lot of innovative Adams designers that have greater concerns about their future with Adams than before this happened. They are much more willing to make the jump to basically a start up company, be it a start up company with a great name and reputation, I guess it would be a restart-up company, than before when they were strickly an Adams employee.

 

Hogan has brand loyalty, I would go this afternoon to see their new club in person, and would probably take my beloved ZB irons to trade in on them if I liked them. When I first heard of the Perry Ellis purchase I wondered where they would get their club designers. The TMag purchase of Adams Golf makes a lot of designers, I have no idea how many there actually are, 2 or 200, but these people have to be greatly concerned.

 

From your lips to Perry Ellis' ears! Think you'd have to race me to the store to see who'd get the first new set of true Hogans, Rick! It's only about an hour from Plano to Fort Worth...

[RoverRick]

I know, I live 80 miles from Plano. But my thought at the time is not so much of manufacturing facilities. There are tax incentives availible to manufacturers to build facilities. (That is one reason I have a facility in Bulgaria.) But you can get talented designers in the newspaper. All of a sudden, there are some that are not as "stable" or "secure" as they were three weeks ago.