Callaway to be bought by Dick's?

[GolfSpy_X]

Been hearing this for a while now...but more and more credible sources are saying that this will be the next shake up amongst the OEM's.

 

So what do you guys think about more and more OEM's being bought by Big Box Stores like Dick's?

 

Do you think this is good or bad for the industry?

 

How do you think this will effect the landscape in the near future?

[Moecat]

Been hearing this for a while now...but more and more credible sources are saying that this will be the next shake up amongst the OEM's.

 

So what do you guys think about more and more OEM's being bought by Big Box Stores like Dick's?

 

Do you think this is good or bad for the industry?

 

How do you think this will effect the landscape in the near future?

Could this be an opportunity for more independent boutique outfits to enter the market? Could be a good thing

[jamo]

It doesn't really matter to me, I'm not a big Callaway fan. It would be an interesting proposition though.

[MmmmmmBuddy]

I really hope this does not happen. The conglomeration of businesses is bad for the consumer. It stifles creativity and innovation, and puts too much power in the hands of a select few.

 

 

just my .02

[GolfSpy_X]

I agree Nic.

 

I really hope this does not happen. The conglomeration of businesses is bad for the consumer. It stifles creativity and innovation, and puts too much power in the hands of a select few.

 

 

just my .02

[Matt Saternus]

I'm with Nic, I don't like to see giant conglomerations either. And I don't like !!!ANYTHING!!! that has to do with Dicks Sporting Goods. I'm not a Callaway guy as it is, but I do always check out their new stuff to give it a chance. If this goes through, I wouldn't even bother looking at it.

[JohnBarry]

I agree with Nic also, although maybe it does let the light shine on the smaller guys, which is only good for the golf consumers!

[NGage]

Please tell me they've changed April Fool's Day.

[puppiesforpresident]

If this happens I will throw a temper-tantrum. Seriously, I will embarrass the crap out of these CEO's in the toy isle.

[JLasvegas]

Its not true, Callaway is changing there image, notice they are not Callaway Golf anymore they are simply Callaway, They are going after a broader market, they are making shoes that are more for the workplaces and going out much the same as Ecco does. They are also producing clothing that is non golf specific

[GolfSpy_X]

Are you referring to the rumor not being true?

 

Its not true, Callaway is changing there image, notice they are not Callaway Golf anymore they are simply Callaway, They are going after a broader market, they are making shoes that are more for the workplaces and going out much the same as Ecco does. They are also producing clothing that is non golf specific

[MmmmmmBuddy]

If this does happen, it is the worst possible thing for Dicks. I predict that Dicks goes bankrupt one year after buying Callaway.

[GolfSpy_X]

Won't happen. Dick's unfortunately isn't going anywhere. They have a lot of cash stored up. And be on the look out for them to make some big moves in the near future. And their distribution channels and infrastructure is set-up perfect for this type of purchase. But I do not think it will be good for golf or the consumer in the long run. A lot of parallels to the big bank industry buying all the local chains.

 

If this does happen, it is the worst possible thing for Dicks. I predict that Dicks goes bankrupt one year after buying Callaway.

[TWShoot67]

I just don't like it. I don't know if it can work. If it's something like how Fortune brands owned Titleit, Acushnet then I guess it might work, but otherwise I don't think it's the way to go. If it happens I can see how less and less money will be allowcated to certain areas of developement. if a Big Company like Dick's feels like they can knock a few of the models out of service it would leave us with less and less choices of what types of clubs to play, or balls to play for that matter. JMO.

 

Tim

[GolfSpy_X]

Very true Tim...but right now Callaway is in a little trouble. They have gotten into too many segments of the industry (Balls, apparel, GPS, and other accessories). They are trying to throw a bunch of things against the wall and see what sticks. They are kind of floating around without a specific target market and model. Which spells trouble in these types of economic times. If they don't turn it around I will predict that in the next 12 months you might see a change of hands.

 

I just don't like it. I don't know if it can work. If it's something like how Fortune brands owned Titleit, Acushnet then I guess it might work, but otherwise I don't think it's the way to go. If it happens I can see how less and less money will be allowcated to certain areas of developement. if a Big Company like Dick's feels like they can knock a few of the models out of service it would leave us with less and less choices of what types of clubs to play, or balls to play for that matter. JMO.

 

Tim

[TWShoot67]

Very true Tim...but right now Callaway is in a little trouble. They have gotten into too many segments of the industry (Balls, apparel, GPS, and other accessories). They are trying to throw a bunch of things against the wall and see what sticks. They are kind of floating around without a specific target market and model. Which spells trouble in these types of economic times. If they don't turn it around I will predict that in the next 12 months you might see a change of hands.

 

I see what your saying, but i believe that's happening to many of these OEM's. You see them all trying to find some product that will bring them back of these past 2-3 years of a terrible economy. Like you say throwing a buch of stuff at the wall hoping one of these items takes off. but right now people are just looking for bargains. Nobody is spending freely like they were 8-10 years ago. We are still in some very tough times and it doesn't seem to be getting better real quick. It's going to take another 1 or 2 at least before we see any progress. If there's nothing happening in the construction industry that shuts down a heck of alot of other indusrtries. When banks won't lend money as they are afraid they won't get it back somethings got to give. we need to start thinking of making something that sells to ther countries instead of always buying from everyone else..

[Addicted2Golf]

Wow. When I read the title of this thread I thought it was going to be some kind of joke. I hope that's not the case.

 

I don't think there is a golf store I dislike more than Dick's. The lack of golf knowledge among the "staff" there knows no bounds.

[JLasvegas]

Are you referring to the rumor not being true?

I dont think its true

I can find out though, Ive been with them on staff for the last 3 years and have some pretty solid contacts in Carlsbad and this is the first ive heard about this, last I heard was they were opening the floodgates so to speak to other aspects, not just golf.

[jamo]

Wow. When I read the title of this thread I thought it was going to be some kind of joke. I hope that's not the case.

 

I don't think there is a golf store I dislike more than Dick's. The lack of golf knowledge among the "staff" there knows no bounds.

 

I don't think you can really call them a golf store. They aren't as bad as Sports Authority though.

[JohnBarry]

They are not a golf store. Do think if they buy they become exclusive to Dicks and Golf Galaxy?

[mcbush25]

All of the Dick's Sporting Goods stores I have been in have horrible selection in their golf sections and are nowhere near the golf shop of a Golfsmith, Golf Galaxy, Edwin Watts, Etc. I think this transaction would be bad for the golfing industry.

[PingManKMB]

I'm with Nic, I don't like to see giant conglomerations either. And I don't like !!!ANYTHING!!! that has to do with Dicks Sporting Goods. I'm not a Callaway guy as it is, but I do always check out their new stuff to give it a chance. If this goes through, I wouldn't even bother looking at it.

 

 

You don't like anything to do with Dick's................. Rumor has it you stopped by Golf Galaxy to check out the Mizuno shaft optimizer not too long ago, lol

 

For those who STILL DON'T KNOW.... Golf Galaxy is OWNED by Dick's.

[Addicted2Golf]

You don't like anything to do with Dick's................. Rumor has it you stopped by Golf Galaxy to check out the Mizuno shaft optimizer not too long ago, lol

 

For those who STILL DON'T KNOW.... Golf Galaxy is OWNED by Dick's.

 

That's true but they haven't turned them into a bunch of Dick's yet (if you know what I mean).

[Matt Saternus]

You don't like anything to do with Dick's................. Rumor has it you stopped by Golf Galaxy to check out the Mizuno shaft optimizer not too long ago, lol

 

For those who STILL DON'T KNOW.... Golf Galaxy is OWNED by Dick's.

 

I am quite aware of that, I was working at Dick's when they bought GG. My work experience there is the reason for my bold, capitalized, exclamation pointed hatred of that place. Your point is well taken though, it's possible that Dick's could own something and not ruin it (ie Golf Galaxy...so far), but my natural assumption is that Dick's will do their best to ruin things.

[JohnBarry]

Agent Plano, do I sense some resentment at your former employer?

[Matt Saternus]

Agent Plano, do I sense some resentment at your former employer?

 

Not resentment, that place is just a joke. I don't want to get into specifics and come off like a bitter employee, but, as I said, that place is a joke and I am inclined to have a poor opinion of anything they're associated with. They are the opposite of what we have been talking about in other threads: no customer service, no interest in the good of the customer, just push product, push credit, push socks (HUGE profit margin).

[Rounders]

I had a feeling something like this was coming. If this is true it will validate the topic I started in the Golf Rumors forum about "The future of Callaway." Lets hope its not true and Callaway doesn't become another "House" brand.

[HoosierGolfer]

Been hearing this for a while now...but more and more credible sources are saying that this will be the next shake up amongst the OEM's.

 

So what do you guys think about more and more OEM's being bought by Big Box Stores like Dick's?

 

Do you think this is good or bad for the industry?

 

How do you think this will effect the landscape in the near future?

I love Callaway equipment and hate Dicks so this would be a huge turnoff for me. Dicks bought Golf Galaxy and gutted the stores. The GG store in Indy was always a must stop for me and it was a great place to do trades, until Dicks came along. The store is nearly empty now days and they offer nothing for trades.

I don't see Dicks having the cash to pull this purchase off so I'm not going to loose any sleep over it.

[Phana24JG]

I love Callaway equipment and hate Dicks so this would be a huge turnoff for me. Dicks bought Golf Galaxy and gutted the stores. The GG store in Indy was always a must stop for me and it was a great place to do trades, until Dicks came along. The store is nearly empty now days and they offer nothing for trades.

I don't see Dicks having the cash to pull this purchase off so I'm not going to loose any sleep over it.

 

Hoosier, unfortunately, Dick's does have the cash to pull this off. They have basically absorbed Golf Galaxy with relatively little long-term debt, and could easily toss 500 million in cash at Callaway, and up to a billion if necessary. I am not an analyst, but it looks like they pared inventory and staff to pay for it. However, it would surprise me if they went this route. Dick's appears to be trying to private label as many products as possible. If so, I would expect them to acquire a lower cost operation. If they were to take over Callaway and try to finance it with cutbacks, the value of Callaway would sharply decline, and Dick's would then be in some trouble. The only scenario that makes sense is if Dick's were to buy Callaway to facilitate their entry into the international market. That would be a very costly undertaking and well-beyond the numbers Dick's presently has. Unless Dick's has an angel or a really ambitious plan to raise serious money, this really does not make a whole lot of sense.

[PingManKMB]

I love Callaway equipment and hate Dicks so this would be a huge turnoff for me. Dicks bought Golf Galaxy and gutted the stores. The GG store in Indy was always a must stop for me and it was a great place to do trades, until Dicks came along. The store is nearly empty now days and they offer nothing for trades.

I don't see Dicks having the cash to pull this purchase off so I'm not going to loose any sleep over it.

 

 

Galaxy offers low trade-in values cause our pre-owned clubs will then be sold at lower prices. If you go to Golfsmith you will see pre-owned at outrageous prices...... This is due to their "90 for 90" guarantee..... People are returning clubs at an alarming rate so Golfsmith is forced to sell those clubs and try to not take a massive hit (even though they are taking a good hit)...

 

I will say, the pre-owned section at GG is much smaller than it used to be.