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Callaway to be bought by Dick's?


GolfSpy_X

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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.

 

 

Dick's DEFINITELY does have the cash to make this happen.

"Hey Ace... You got any more of that gum?" "That's none of your damn business and I'll thank you for staying out of my personal affairs." - Ace Ventura Pet Detective

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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.

 

 

You are right... Dick's is slowly changing what were formerly Golf Galaxy policies.... Soon to be, if not already, Dick's policies.

"Hey Ace... You got any more of that gum?" "That's none of your damn business and I'll thank you for staying out of my personal affairs." - Ace Ventura Pet Detective

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

 

 

To be determined.............. :blink:

"Hey Ace... You got any more of that gum?" "That's none of your damn business and I'll thank you for staying out of my personal affairs." - Ace Ventura Pet Detective

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Just because a company looks like on the outside to be doing great, doesn't mean it's true. Even if it is, a buy out maybe the something the investors see as a long term and short term winfall for the stock holders.

John Barry

Bring the Funk, Back to Golf

The Golfer's Trip

 

 

 

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  • 2 weeks later...

Interesting thread...I don't have a strong feeling towards Callaway, but going the Dick's route would seem to be a mistake. Taking a premium brand and putting them in a department store is going to alienate the folks who want the cache of a premium brand. Maxfli is now under Dick's ownership and my initial impression is that they are going "spreadsheet". The balls I've seen are not anything I'd be tempted to play. It will only take one season of ownership to see which direction Dick's would take Callaway. If they go further towards mass market, they will kill the brand IMO.

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Here's why I hope to all things good that this "Dick's buying Callaway" rumor is never true:

 

So a last fall I won a putting contest and got a $60 gift card to Dick's. Everything in that place is so ridiculously over-priced, I figured I'd wait till they got grips in for this season and buy some grips for re-gripping my main set. I go in today, and make my way to the repair section. No attendant around, so I walk behind the semi-counter that's kinda out in the middle of the floor and start looking through the grips. I'm looking for Tour Velvets, and they've got a ton. Regular, Jumbo, Midsize, regular women's, pink women's, 58's, and some 60's. Of course, they are all mixed in together and hardly any of them (much less any other kind of grips) are in the spots they are tagged at on the bins.

 

So finally old man golf station employee comes moseying over, and asks if I need any help. I let him know what I need, and he says "yeah, we got lots of them right here." Then he proceeds to tell me the kinds they've got -- as he randomly pulls each kind out. He clearly didn't know there were necessarily different ones.

 

Then things got funny. He didn't know there are different sizes to them, or that some could be round and some ribbed. When I told him what kind of clubs/shafts I had and asked if he knew what kind I needed to keep them standard, he looked at me like I was talking Chinese arithmetic. He had no clue what I was talking about. I didn't remember which way it went, but I tried to explain to him that to keep things standard that a .58 grip needed to be on a .58 butt shaft, and .60 on .60....and that to mix them up would make it over- or under-sized.

 

He again looked at me like I was speaking the language from planet Zoltan. He then preceded to tell me that they'd never had a problem with their grips not fitting on shafts. And he was kind enough to let me know that you put tape on under the grips and that could make some feel bigger. He went over and pulled off a club like mine with the same shaft, and as I tried to peel the grip back to see the number on the inside he gave me this nugget of info: "see....the grips stretch to go over the shaft...they stretch".

 

Seeing who I was dealing with, I kindly asked if he had the info in a Callaway product book or if they had internet so he could look up Callaway cust. service. He walked away as I began to look through the bunches of random Tour Velvets....trying to separate them into like kinds. He comes back after not being able to find any books.....so I ask him if he can just look it up.

 

Next I got to watch the "old man trying to use computer" comedy show. Finally, I guided him to the customer service tab, and I called Callaway to get the info I needed. I was able to cull 9 Tour Velvets .60 round at $3.49/ea. As I thanked him for his help, he asked me if I put them on myself. I told him "yes"....but left off that it was because of all the idiots like him that work in golf shops and know almost nothing about equipment or golf repair.

 

 

Dick's has no business being in the golf business with the way they run things --- not to mention that their prices are crazy. I saw a nice pair of golf shorts....only $65.

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Dicks holds retail, that's their policy, most stores do, but the smaller non chain stores are willing to wheel and deal more.

John Barry

Bring the Funk, Back to Golf

The Golfer's Trip

 

 

 

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I wonder how this owuld affect all their tour staff. I would imagine many of these pros do not want DICK's SPORTING GOODS all over their bags, but they are signed into contracts. I can also imagine that Dick's does not want the overhead of having to pay to play all these tour professionals. I will wait and see what happens. I think this would be a good business move for the current owners of Callaways (to get out while there is still value), but terrible for golf in general. Customer service is king and Dick's has a severe lack of it.

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Ngage is completely correct in his assessment of Dick's as A WHOLE. no one really knows how to handle golf equipment properly and their knowledge of the product is absolutely ridiculous. i work at a privately owned golf shop and the buying out of Callaway would be an awful thing for us. Dick's would destroy the brand, like they did to Walter Hagen etc..., and turn it into a complete mockery. Callaway as a company is still revered as one of the best in the business and their new line of equipment this year has been flying off the shelves. The economy is still obviously in a tough place, but the buying out of the company from Dick's has huge consequences.

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My stomach hurts everytime I read this thread. I agree that Dicks has no customer service and I rarely shop there. If this sale happens, and I hear nothing new to indicate it is, I will jump ship for sure and play something other than Callaway. It would be the death of what has been a very good brand.

Driver: Titleist 915 D3 11.5* 42.50"
3 Wood: Titleist 915 F 15*  40.25"
5 Wood: Titleist 915 F 18* 39.50"
7 Wood: Titleist 915 F 21* 39.25"
Hybrids: Titleist 913 H 24* 38.50" & 27* 37.50" 
Irons: Titleist DCI 990 6 thru 9 -0.5"
Wedges: Titleist DCI 990 49* and Vokey SM 52.08 & 56.14 -0.5"
Ball: Titleist 2015 Pro V1x
Putter: Titleist Scotty Cameron 2014 Select Newport w/SS 3.0 34.00"
 

"Golf doesn't build character; it reveals it."

 

 

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I agree, a brand down the tubes. I love how they have Walter Haggan Apparel at full price when I can get the same stuff on TGW.com for 30-40% off.

John Barry

Bring the Funk, Back to Golf

The Golfer's Trip

 

 

 

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Here's why I hope to all things good that this "Dick's buying Callaway" rumor is never true:

 

First of all, those semi-counter things in front of the grips. One employee got all on my case for being behind one looking at grips one time.

 

Second, I heard another grips related horror story from Dick's on another forum. The employee took the Cameron Cord grip off the guy's Scotty, then puts the Golf Pride Tour Classic on instead of the Tour Tradition. They are both very similar looking, but they are also labelled, so there is really no excuse. So the guys asks the employee to put the other one on, which of course they don't have in red, which the guy wanted. So in the end the guy walks out with nothing but his Scotty, now without a grip.

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First of all, those semi-counter things in front of the grips. One employee got all on my case for being behind one looking at grips one time.

 

Second, I heard another grips related horror story from Dick's on another forum. The employee took the Cameron Cord grip off the guy's Scotty, then puts the Golf Pride Tour Classic on instead of the Tour Tradition. They are both very similar looking, but they are also labelled, so there is really no excuse. So the guys asks the employee to put the other one on, which of course they don't have in red, which the guy wanted. So in the end the guy walks out with nothing but his Scotty, now without a grip.

sounds like a "Dick" move.....

Driver - Ping G430 Max 9° | Ventus Blue TR 
Hybrid - :srixon-small: ZX 16° & 18° | GD Tour IZ S

2 Iron - :srixon-small: ZU65 17° | AeroTech SteelFiber 110icw S

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Wedges - :cleveland-small: RTX 6 Tour Rack 50° 54° 58° | TTDGTI S400, std length 1° flat

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First of all, those semi-counter things in front of the grips. One employee got all on my case for being behind one looking at grips one time.

 

Second, I heard another grips related horror story from Dick's on another forum. The employee took the Cameron Cord grip off the guy's Scotty, then puts the Golf Pride Tour Classic on instead of the Tour Tradition. They are both very similar looking, but they are also labelled, so there is really no excuse. So the guys asks the employee to put the other one on, which of course they don't have in red, which the guy wanted. So in the end the guy walks out with nothing but his Scotty, now without a grip.

 

 

sounds like a "Dick" move.....

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Has anyone heard anythhing else on this subject. It would be pretty interesting to see what other golf retailers would try and carry Callaway.

 

I have not heard any rumblings lately about this. I'm still hoping it was nothing more than rumor. I love Callaway but hate Dicks.

Driver: Titleist 915 D3 11.5* 42.50"
3 Wood: Titleist 915 F 15*  40.25"
5 Wood: Titleist 915 F 18* 39.50"
7 Wood: Titleist 915 F 21* 39.25"
Hybrids: Titleist 913 H 24* 38.50" & 27* 37.50" 
Irons: Titleist DCI 990 6 thru 9 -0.5"
Wedges: Titleist DCI 990 49* and Vokey SM 52.08 & 56.14 -0.5"
Ball: Titleist 2015 Pro V1x
Putter: Titleist Scotty Cameron 2014 Select Newport w/SS 3.0 34.00"
 

"Golf doesn't build character; it reveals it."

 

 

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I agree, a brand down the tubes. I love how they have Walter Haggan Apparel at full price when I can get the same stuff on TGW.com for 30-40% off.

 

 

It seems to me like it would be pretty tough to get Walter Hagen anything on TGW for any price given that it is a Dick's private brand and the only two places in the US it is sold are Dick's and Golf Galaxy...

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Actually I am sorry, it's Golf Galaxy that I bought them at close out, sorry about the misunderstanding. Of course, GG is owned by Dicks, which explains it, full price hold the line at Dicks, excess inventory at GG.

John Barry

Bring the Funk, Back to Golf

The Golfer's Trip

 

 

 

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  • 5 weeks later...

This is the first I've heard of this Callaway takeover. My line of thinking? Blah. Only being able to market something as the "longest, straightest" whatever is unimaginative- and probably untrue (though someone needs to actually test all the models of the last 5+ years to verify/deny these claims). Losing a Callaway should be a wake-up call to the others... but then, when Ben Hogan Golf went down, THAT should have been the sign.

 

Who am I kidding? If losing Ben Hogan didn't tell the others to be honest with their marketing, or stop charging so goddam much for their equipment, losing Callaway will be nothing more than a blip on the proverbial radar.

 

This is why 99% of my bag is Acer from Hireko. I refuse to pay that kind of money... I have custom-made Acer (XK driver, 3 wood, 3h, 4&5i Std., 6-P Pro, XB wedges) clubs and I'm shooting lower scores now than I was last year with "name" crap. The only club that is name-brand is my putter- an Odyssey White Hot XG #7. It was a gift out-of-the-blue from my wife, and yes, I realize it's a subsidiary of Callaway. The whole "gift from my wife" trumps that.

 

I don't know if I'm just an "off the beaten path" guy, but I do know I'm pretty jaded on the whole "you're only a real golfer if you game name-brands" stuff. Calling people "pretenders" because they don't "upgrade" every other year (as Mike Stachura of Golf Digest has done) is another way to ruffle my feathers. In a nutshell, losing Callaway really won't have any affect on me.

 

Neither will the whole Dick's Acquiring Callaway thing, since there aren't any in my area. I don't know if it's just unlucky- judging by what's been said, I doubt it- but other than pro shops and Dunham's (a Midwestern all-around sporting goods store for those that don't know) there isn't much by the way of golf equipment.

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Actually I am sorry, it's Golf Galaxy that I bought them at close out, sorry about the misunderstanding. Of course, GG is owned by Dicks, which explains it, full price hold the line at Dicks, excess inventory at GG.

 

 

 

Don't sweat it; I do that with stores and peoples' names all the time... I think I need more gin-ko biloba LOL.

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  • 2 weeks later...

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'm happy to say, unless the Big Box Stores buyout Ping and Titleist this won't effect me ;), But it's hard to believe that a major OEM like Callaway would be selling out, especially since they hold a very strong position in the golf market and have always had a positive profit margin year after year

Titleist 909Dcomp 10.5º Aldila Voodoo svs6, 44" | Titleist 909F3 15º 18º | Ping Anser Forged, 3 - pw | Ping Tour W 54º 60º | SC Studio Select Newport 33" | Titleist ProV1x

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So why would a retail store purchase a major manufacture? Dicks is big, but not big enough to buy Callaway. Callaway is a WORLDWIDE company, haven't seen to many Dick's in India...

This rumor is just that, a rumor.

 

 

Even though they may put up seemingly solid numbers, without being there in the board room it's impossible to know what's truly going on. There's been plenty of other major players (Lynx, Ram, Spaulding, Ben Hogan, MacGregor, MaxFli, Top-Flight, etc.) see their days as independent, major contributers/OEMs come to an end, either being bought by a rival company, a box store, or just fading into oblivion. It isn't just Callaway- they're all susceptable to that trend... all it takes nowadays is one bad model/change in mission statement.

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It's funny that 3 of the 7 brands that you mention were purchased by Callaway!

Again, Callaway is a GLOBAL brand and in my mind considered one of the big three. The companies that have fallen did not have as strong of a foot-hold in the market as Callaway currently does. Maybe they did at one time, but at the time of there collapse, they were no where near the powerhouse that Callaway is right now.

And by the looks of it, they posted slightly better numbers than they thought, and improved over last year... Still think they'll be sold?

 

http://www.reuters.com/article/idUSSGE66R0MF20100728

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Yes I sure do....especially with the news that came out today. Just getting their numbers right before they sell.

#TruthDigest
 

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Yes I sure do....especially with the news that came out today. Just getting their numbers right before they sell.

So let me see if I can sum up your thinking...

1. A company is showing increase in sales.

2. Dominating on Tour with Odyssey (12 wins), the driver and Major victories.

3. #1 iron in golf for the last 13 years

And yet they are in a posistion that they need to be sold?

Why Dicks? Why would a sporting goods company that sells deer urine want to purchase a MAJOR golf equipment manufacture? To me, that's like saying Nike is going to purchase Heckler & Koch and get into law enforcement.

As far as rumors go, this one is WAY out there.

I see Callaway like Ford or GM. They aren't going anywhere.

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I see Callaway like Ford or GM. They aren't going anywhere.

 

You mean "Government Motors"? Besides, just because a company sells better than they thought they would for this quarter doesn't mean there isn't internal problems. Maybe all their acquisitions are finally catching up to them on the books... Maybe there's a rift developing in the head honcho's office... Like I said, without being there, how can any of us (except MGS) know for sure?

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You mean "Government Motors"? Besides, just because a company sells better than they thought they would for this quarter doesn't mean there isn't internal problems. Maybe all their acquisitions are finally catching up to them on the books... Maybe there's a rift developing in the head honcho's office... Like I said, without being there, how can any of us (except MGS) know for sure?

GM may have been a bad example.

I'm sure there are some on here that know for sure... ;)

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One look at the balance sheets should be enough to get one to believe that this is at least possible. At this point in time Dick's is a much bigger, much more profitable company. It's also worth mentioning that Dick's has been trying to make an impact on the golf world for a while now. They bought the Maxfli brand (minus Noodle), and have several other house (Walter Hagen), and near exclusive (Slazenger) brands. Landing a major name could be the next step for them. Toss in the fact that Callaway is hovering near a 5 year low (1/3 of what the stock was trading at 5 years ago), and that Dick's isn't that far off their 5 year high, and yeah, I'm willing to believe it.

 

I'm not saying it will happen, but looking at the numbers, I can't see why it couldn't.

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