Tiger and Taylor Made?
If you saw this report recently, you may have had the same reaction as me: Good Luck!
I believe the report stated that Tiger was part of a private group, which if it was my money would be the safest way to invest. Now, I am far from a financial planner, as my ex-wife could attest! But, in looking at the history of golf stars and their foray into the equipment business, it is not necessarily a lucrative venture when you own the golf clubs that your name gets imprinted on.
Look at the big three superstar golfers and their club companies: Hogan, Palmer and Nicklaus. All three had great respect of their peers and the golfing public. Each had household names that carried weight well beyond the course. Each were incredible champions, Sports Illustrated cover material and media giants. Consider that Ben Hogan had a Hollywood movie made about his life and played a role in The Caddie, a classic Martin-Dean comedy. Each authored instruction books that were best sellers, Arnie, an audio series. Considering their name, popularity, champion status…how did their companies do?
Not. Very. Well.
Hogan Company had a well earned and deserved reputation as one of the finest manufacturers of forged irons, persimmon woods, a descent tour ball, tour player usage and endorsement from the 1960’s until the 1990’s. It was bought and sold several times, with Mr. Hogan keeping control of the product, but went the way of the forged iron and disappeared with only the Apex brand surviving via an unlikely source, Callaway golf. In my opinion, the game changed. More golfers, more higher handicap golfers looking for an improved game through technology not practice on the range with an instrument that is finely tuned for an expert.
When I moved to Dallas/Ft.Worth in 1984 every pro that I worked with played Hogan equipment and golf balls. A year later Hogan introduced the Radial iron that was a financial success regionally for sure. There was a mystique about Hogan. I’m sure plenty of club pros who simply bought it, sold it and played it for the “Gary Player” reason. The story comes from Player himself who when struggling with a certain aspect of his game called Ben Hogan and asked for advice. Mr. Hogan famously asked him what clubs he played and Player replied, “Dunlop”. Hogan’s retort was “Well call Mr. Dunlop for his advice then!” Common thought among club pros was that you couldn’t even talk to Mr. Hogan if you didn’t play his clubs. And every club pro, regardless of the remoteness of that opportunity was swayed towards Hogan products. In truth, Hogan’s venture could not stand on it’s own in the market place and went away until a recent venture that markets a quality product more as a boutique item with little mass appeal. Hogan, the man, did not have the Palmer or Woods recognition or appeal and that limited his mass marketability.
Palmer’s club brand had some regional success, but was a second level pro shop brand over the years. Some really good quality items, the Pearless persimmon woods and some forged irons went the way of all forged blades and disappeared. While Arnie was always a pro’s pro, wrapping his own leather grips, eyeing a good forged putter and persimmon wood, his name recognition built support for Callaway’s game improvement line of equipment as an endorsement deal and not as an owner.
Jack Nicklaus used MacGregor golf clubs when they were the best in the business as he began his career. As his wealth grew, Jack diversified with corporate endorsements, course design and renovation business and others. But, when MacGregor fell in market share and profits, they turned to Jack as a savior. I was first signed to a staff deal with MacGregor, in 1987 the year after his Masters victory. Forged blade irons, a remake of the putter used to win, a terrible balata wound ball and persimmon woods were their good products! They even went with a remake of the famous persimmon drivers, the Eye-o-matic and Tommy Armour models with the beautiful finishes and classic pear shape heads. As the market went into metal woods, game improvement features MacGregor disappeared.
Taylor Made has produced some really fine clubs that have been successful because it appealed to all levels of golfers, has had quality mainstream marketing and an extremely strong Tour presence. Why it has been unprofitable is more about the golf industry itself and less about the product. Like any other business, golf manufacturers have to be constantly developing new models that outperform the competition AND make money. One big knock against Taylor Made is that it has shortened the shelf life of a new club. For them 90 days was the max before a new and improved version was introduced. For the retailer that is required to stock a certain amount to receive good terms, it means have a lot of dead stock with no way out other that to discount to cost and restock the new. A big turn off for green grass facilities.
These are some of my recollections of my retail experience with the big names of golf and their club companies. I’m curious on your take. Would a player’s ownership in a brand be reason for you to buy?