The post Topgolf Callaway could look noticeably different next year appeared first on Golf.

The post Topgolf Callaway could look noticeably different next year appeared first on Golf.

Three years after Topgolf and Callaway joined forces to create Topgolf Callaway, the two sides announced their intention to take different paths in 2025.

In a release on Wednesday, Topgolf Callaway Brands Corp., the company overseeing both brands, confirmed it will move forward with a plan to separate the company in two, potentially via a spinoff of Topgolf next year.

The reason for the change of heart? Topgolf Callaway believes the brands are stronger on their own.

“We believe this business, on a stand-alone basis, will be well understood and valued by the market,” said Chip Brewer, president and chief executive officer of Topgolf Callaway. “Since our merger with Topgolf, we have made considerable investments in the Topgolf business that have dramatically expanded its scale, digital capabilities and venue profitability.  These investments, combined with the hard work of the Topgolf team, have allowed us to outperform our original growth and free cash flow expectations.”

The noted spin-off of Topgolf into a “stand-alone public company,” in the second half of 2025, is the most likely separation path. Still, other disunion options are also being considered in the name of shareholder value. In other words, nothing is certain. What is certain is that Topgolf Callaway believes the two brands “represent different and compelling investment opportunities” on their own.

Under the proposal, Topgolf Callaway would spin-off “at least 80.1 percent” of Topgolf to “obtain the desired tax-free treatment of the spinoff for U.S. federal income tax purposes.” Also under consideration is “retaining a limited ownership in Topgolf for a period of time.”

“Topgolf has a different operating model, capital structure and investment thesis than Callaway, and as a result, the Board has determined that separating Topgolf will best position Topgolf and Callaway for success and maximize shareholder value,” said Brewer.

Callaway initially invested in Topgolf in 2006, before increasing its stake to 14 percent in 2018. Two years later, in 2020, the two sides merged and eventually changed the name to Topgolf Callaway, in March 2021, when Callaway completed an all-stock acquisition ($2.66 billion) of Topgolf Entertainment Group.

The news of a spin-off comes six months after a report from South Korea’s Chosun Daily claimed Callaway could be spun off and put up for sale so management could focus solely on its high-tech Topgolf driving ranges. Shortly after the report surfaced, Callaway issued a statement confirming they were “not aware of any such discussions.”

Topgolf Callaway’s current portfolio includes Callaway, Topgolf, Travis Mathew, TopTracer, Jack Wolfskin, Odyssey, OGIO and World Golf Tour.

Want to overhaul your bag for 2024? Find a fitting location near you at True Spec Golf.

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The post Topgolf creates non-conforming club to help golfers experience the perfect shot appeared first on Golf.

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Whether you’re an experienced golfer or just a beginner, everyone knows the euphoric feeling that comes from hitting a perfect shot. Now, with the help of its new The Sure Thing club, Topgolf is looking to help more golfers experience that feeling.

“At Topgolf, we exist to bring joy through more ways to play the game of golf, and The Sure Thing is one way we’re delivering on that purpose,” Topgolf CEO Artie Starrs said in a release. “We want everyone to experience the thrill of hitting the ball solidly and into the air and designing a club with new players in mind is our way of helping to make that happen.”

Designed in collaboration with the engineering team at Callaway, The Sure Thing has some very real (and not-so-real) design features built in:

A huge club face: The enormous face area creates the confidence to find the club face and get the ball into the air.

Twenty degrees of loft: With 20 degrees of loft (the same as most modern 4-hybrids), its extremely easy for golfers of any skill to create launch and spin to keep the ball in the air longer.

Shorter shaft length: To further make the club easier to hit, it’s around the same length as a standard 5-wood.

Chicken wing technology (NOT REAL): Although the below video might suggest it’s a real thing, there is no real chicken wing technology packed into The Sure Thing. But… Topgolf is offering players one free order of boneless chicken wings per bay on Aug. 5 when they try out The Sure Thing during their gameplay (while supplies last).

Price and availability

So the great thing about The Sure Thing club is that to get your hands on one it’s completely free (kinda), because it’s only available for use at Topgolf locations.

Want to overhaul your bag for 2024? Find a fitting location near you at True Spec Golf.

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The post Callaway Golf on the selling block? Manufacturer responds to report appeared first on Golf.

The post Callaway Golf on the selling block? Manufacturer responds to report appeared first on Golf.

One of the leading golf-equipment manufacturers could be for sale, according to a report from South Korea’s Chosun Daily.

According to the report, Topgolf Callaway‘s major shareholders, which include BlackRock, Providence Equity and Carolina Hurricanes owner Thomas Dundon, have tapped a lead manager to investigate the possibility of spinning off the Callaway Golf equipment and hard-goods business to focus solely on its high-tech Topgolf driving ranges.

The news outlet reported that Callaway would be valued at nearly $3 billion, and that a South Korean “strategic investor is reportedly in the running to acquire the company.” To put the reported value into perspective, Korea-based Centroid Investment Partners acquired TaylorMade Golf from New York-based KPS Capital Partners in 2021 for $1.7 billion — a number that remains the largest acquisition in the history of the golf-equipment industry.

In the hours after the report was published Wednesday, Topgolf Callaway’s stock value shot up more than 10 percent.

When reached for comment by GOLF.com, a Callaway representative issued the following statement: “While it is our long-standing practice not to respond to market rumors and speculation, in light of today’s unusual market activity, coupled with a recent media report originating in Korea regarding discussions of a potential sale of the Company or its golf equipment business, we confirm that we are not aware of any such discussions. We do not intend to comment further on this topic, and we assume no obligation to make any further announcement or disclosure should circumstances change.”

Korean investors have acquired some of the biggest brands in the industry in recent years, beginning with the acquisition of Acushnet Co. (Titleist’s parent company), in 2011, by a group that included Fila Korea and Mirae Asset Private Equity. A decade later, Centroid Investment Partners purchased TaylorMade from KPS.

Callaway initially invested in Topgolf in 2006, before increasing its stake to 14 percent in 2018. Two years later, in 2020, the two sides merged and eventually changed the name to Topgolf Callaway, in March 2021, when Callaway completed an all-stock acquisition ($2.66 billion) of Topgolf Entertainment Group.

Topgolf Callaway CEO Chip Brewer knows the ins and outs of selling a golf hard-goods business, if such a situation were to materialize. In 2012, Brewer was the CEO of Adams Golf and played a pivotal role in its sale to TaylorMade-Adidas Golf for a reported $70 million. Following the sale, he was hired by Callaway and in that period grew its business portfolio beyond just golf equipment by acquiring Travis Mathew, Jack Wolfskin, OGIO and Topgolf.

Brewer has remained bullish regarding the company’s future and confirmed during its Q4 earnings conference call last month that “virtually all” of the venues recently opened have produced “average opening results [that] have exceeded our targets.” He also reiterated that Callaway equipment would remain a large part of the gear message at Topgolf, in particular the Chrome Tour golf ball.

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During the conference call, Brewer also offered a similarly strong report on Callaway’s recent hard-good sales and position in the marketplace.

“In addition, our respective marketing teams are leaning into our Callaway Chrome Tour Golf Ball launch to promote sales and trial of our new golf ball,” Brewer said. “Our goal is 200,000 new users coming specifically from Topgolf.”

“The business performed exceptionally well from a brand perspective in 2023,” he said. “Our U.S. dollar market share placed us as the No. 1 club brand and the No. 2 golf ball brand. In clubs alone, we were the No. 1 in total clubs, drivers, fairway woods, hybrids and irons.

“This was led by our 2023 launch of Paradym. In Q4, we had a highly successful launch of our new Ai-One putter line. Global revenues were up 5% in Q4 and approximately flat on a full-year currency-neutral basis, despite an approximately $100 million headwind related to 2022’s retail inventory catch-up.”

Topgolf Callaway’s portfolio includes Callaway, Topgolf, Travis Mathew, TopTracer, Jack Wolfskin, Odyssey, OGIO and World Golf Tour.

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The post Callaway’s Topgolf acquisition? Here’s how that’s working out appeared first on Golf.

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When Callaway Golf made its initial investment into Topgolf only a few years ago, industry-watchers looked upon the move with curiosity. Was this investment a short-term deal to cash in on a growing brand, or a long-term strategic play to help diversify the manufacturer’s growing portfolio of companies?

Well, it’s now 2023, and Callaway Golf has officially changed its name to Topgolf Callaway Brands. The company also just released its 2022 earnings report that shows Topgolf (locations, Toptracer technology and media) made up 39% of the brand’s total revenue.

That 39% represents more than $1.5 billion (yes, billion) of Topgolf Callaway’s total revenue of $3.995 billion.

What this means

I’m not an accountant or financial whiz, but if a company you bought a few years ago becomes almost 40% of your total revenue generation, I would call that a pretty sound decision.

On a much larger scale, this success plays into Topgolf Callaway’s direction of total diversification in and around the lifestyle of golf and golf-related activities, including outwear company Jack Wolfskin, golf and lifestyle brand Travis Matthew and golf bag/luggage/backpack maker OGIO.

As I have previously written, “golf” as a whole is becoming big business away from traditional green grass golf courses, and with equipment manufacturers being some of the largest companies within the space, they are looking at ways to grow beyond just making golfers have only a properly fit set of irons or a new putter.

Another example of the brand extending into the lifestyle spaces is its recent signing of golf YouTube channel GoodGood Golf, which figures to play an important role in Topgolf Callaway’s growth plans. GoodGood’s million-plus subscribers represent a young and captive audience that might not be in the market to buy new clubs but still hit up their parents to go to Topgolf for a few hours — and there’s good money to be made on chicken tenders and nachos.

This is just the beginning for the Topgolf and Callaway synergy as off-course golf entertainment continues to grow. Look for the company to keep cashing in.

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With the universal popularity of social media, along with the desire to attract new golfers and new customers to the game, golf-equipment manufacturers are going way beyond just gear to grow their market share and influence on dedicated and fringe golfers alike.

Growing diversification

Diversification in business isn’t new, but when it comes to golf and golf-related businesses, the focus has traditionally been to hook into the game’s most dedicated players to create a customer base. This top-down approach to influence has helped build many of the most successful equipment companies, but with television viewership shrinking and the desire to consume the game in different formats, the biggest companies in golf are taking cues from some of the biggest entertainment companies in the world to build an ecosystem around their products.

The “Disney-fication” of OEMs

When thinking of a business that best exemplifies an all-encompassing ecosystem for its customers it’s hard to ignore the behemoth that is Disney and its success. It has movies, content, theme parks, merchandise, resorts and additional licensing. Once you go “Disney,” it’s hard to go back.

When we look at some of the biggest moves Callaway, TaylorMade, and Titleist have made in the last couple of years, they are all building their own customer ecosystems to keep customers engaged with the brand and coming back from more. The most successful of these decisions to date is Callaway’s purchase of Topgolf.

Callaway Paradym Driver

To create a new paradigm for golfers, we’ve reimagined how a driver is built from the ground up. This is a complete shift in performance, with a design that radically breaks the tradeoff between incredible distance and exceptional forgiveness. The Paradym Shift Construction features an industry-first 360 Carbon Chassis that eliminates titanium from the body, so we can push weight and stability to the limit.

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What started as a partial investment in the company turned into a full-blown purchase which was completed in early 2021. Since then the company has pushed for growth and turned Topgolf into a destination for new and hardcore golfers looking to kick back, have fun and enjoy an alternative way to enjoy the game.

TaylorMade has officially started to dive into the off-course entertainment game with its investment in PopStroke, which further strengthens its relationship with Tiger Woods, who is also part of the investment group.

TaylorMade Stealth 2, Stealth 2 HD and Stealth 2 Plus Drivers

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Although TaylorMade’s official stake has not been announced, its recent partnership included TaylorMade’s CEO David Abeles joining the board of directors, a group that includes PopStroke CEO Greg Bartoli, TGR Ventures CFO Christopher Hubman and Chairman of NBC Sports Group Pete Bevacqua.

So if Topgolf and PopStroke are theme parks, where are the movie franchises?

One of the most anticipated times of the year for golf-equipment junkies is December to January, when PGA Tour, European Tour and LPGA players sign new or extend existing equipment contracts. These signings have traditionally been met with big announcement videos and events but beyond Brooke Henderson and Nelly Korda signing with TaylorMade, big events for professional golfers were few and far between.

Instead, the free agent signing space was filled with influencers and social media personalities that included YouTube stars GoodGood golf, singer Niall Horan signing a partnership with Callaway, Grant Horvat signing with TaylorMade and No Laying Up partnering with Titleist.

Rather than hoping for the next big professional golf star to come along and get on TV for a few minutes at the time on Sunday afternoon, the manufacturers know social-media personalities bring with them large dedicated audiences that consume hours of content across multiple platforms. Why wait for your favorite show when you can stream it when and how you want it?

What about the actual equipment?

With so much going on outside of equipment, it might feel like companies are taking their foot off the pedal when it comes to innovation, but in reality, it’s the opposite. OEMs are investing more than ever in R&D to drive innovation for everyone from regular golfers to professionals at the highest level.

Just as is the case in the auto industry, commercials, product placement and celebrity endorsements can only get so much attention; the final purchasing decision comes down to a test drive, and in that case, a golf club still has to perform.

Want to overhaul your bag for 2023? Find a fitting location near you at GOLF’s affiliate company True Spec Golf. For more on the latest gear news and information, check out our latest Fully Equipped podcast below.

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The post Bryson DeChambeau went to Topgolf. Yes, of course the results were spectacular appeared first on Golf.

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Picture this: You’re banging balls at your local Topgolf, crushing some wings and nachos with your crew, when who should appear but missile-launching major-winner Bryson DeChambeau. What a world! It’s like John Legend showing up at your favorite karaoke bar, or J.K. Rowling making a cameo at your creative-writing class.

Here’s a video of his visit, which DeChambeau posted to his TikTok account last weekend:

This wasn’t DeChambeau’s first Topgolf trip. Here he is just a couple of months ago, mashing balls at another location with German long-drive specialist Martin Borgmeier.

What’s remarkable about DeChambeau’s latest visit, though, is his ball speed. DeChambeau regularly pushes north of 200 mph during his fabled training sessions and occasionally out on Tour, but casually wheeling back and delivering that kind of number with a beat-up Topgolf ball? Color us impressed. (We’re assuming Bryson didn’t bring his own balls, although he is swinging a Cobra driver.)

The result: a soaring drive that flew the netting at the back end of the range — in fact, as the ball exited the property, that’s where it appeared to hit its apex. If you’ve been to a Topgolf, you know how mighty a blast that is. DeChambeau captioned the video with: “We might need to get taller nets,” which called to the mind the net extensions organizers of the RBC Heritage installed at Harbour Town earlier this year to prevent bombers like DeChambeau and Rory McIlroy from airmailing the range.

Anyway, next time you see balls carrying the back net at your local Topgolf, peer down a few bays. The bombs may just be coming from an eight-time PGA Tour winner.

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The post Here’s how a Topgolf game involving NFL stars might have won you a free beer appeared first on Golf.

The post Here’s how a Topgolf game involving NFL stars might have won you a free beer appeared first on Golf.

There are few finer experiences in life than that of the free drink. It is a moment of instant bond between both giver and taker — a charitable contribution in which each party is the beneficiary.

Topgolf is a frequent setting for free drinks. Built into the arcade-style driving range is a restaurant and bar, which naturally lends itself to an element of competition. For those with a competitive edge who frequent Topgolf, a common wager for competition is the following round of drinks.

On Thursday night, a group of NFL stars gathered at Topgolf in Nashville, Tenn. True to form, the group played for free drinks, but with a twist: the winner of the competition won not only free drinks for himself, but for his entire fanbase.

The idea began as part of San Francisco 49ers tight end George Kittle’s “Tight End University,” a camp-like experience for the NFL’s best players at the position. Over the past week, more than 40 NFL tight ends have descended upon Nashville in order to participate in the camp and learn more about their position from the league’s best.

Lifestyle

As with any good summer camp, Kittle and Co. worked hard to incorporate opportunities for bonding between the tight ends in attendance. The players are all staying in a hotel together, eating meals together, and participating in various on-and-off-field activities together.

The last of those activities came on Thursday evening, when the camp descended upon Topgolf for a friendly competition. But when they got on-site, players were alerted to a change in plans — the competition was about to get a whole lot less friendly.

As part of the outing, the players would each compete against one another in a long drive competition at Topgolf to determine a winner. Bud Light agreed to provide the winning player’s city with free beer.

On Monday afternoon, Kittle took to Twitter to announce the winner of the competition: Travis Kelce, a tight end for the Kansas City Chiefs.

“My guy @TKelce hit bombs at TEU and took home free @BudLight for all @Chiefs fans in Kansas City on National Tight Ends Day,” Kittle said. “That boy like that!”

Chiefs fans who wish to collect on their free beer can do so on National Tight End’s day on October 24th, and should be on the lookout for more information from Bud Light for how to cash in.

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On Tuesday, Callaway and Topgolf announced that they would be merging, with Callaway agreeing to buy the remaining stake in the driving range entertainment business in an all-stock deal.

Callaway, which first invested in Topgolf in 2006, already owned 14% of the company. The terms of the merger imply Topgolf’s equity value at approximately $2 billion.

So why did Callaway make the investment — and what does it mean for the future of both companies? Callaway CEO Chip Brewer and Topgolf CEO Dolf Berle sat down with GOLF.com on Wednesday to lay out a more complete vision.

The following interview has been edited lightly for clarity:

Dylan Dethier, GOLF.com: My first question is simple but elemental. What did Callaway see in this deal? What is Topgolf doing right that you guys wanted in on?

Chip Brewer, Callaway CEO: In short, Dylan, Topgolf is the best thing that happened to golf since Tiger Woods. It’s transforming the game. And it’s going to be the biggest source of growth for our industry.

It’s accessible fun. It fits with the times. It’s also a great business concept. And we’ve also been an investor since 2006; I’ve been on the board since 2012, so I’ve had a ringside seat as this business has grown and developed.

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When you look at the two businesses, they just really fit well together. Callaway is an iconic brand. We’ve been around now for a long, long time and we’re global leader in the golf equipment market. We have a strong relationship with consumers globally. And Topgolf is creating new golfers, but they’re also entertaining existing golfers — half the visitors that go to Topgolf venues are already golfers themselves. So the access and the reach and the added growth and value that we think we can great through that consumer overlap and the consumer growth.

And then of course there are Topgolf’s other associated businesses, like Toptracer Range, which is incorporated at driving ranges. And obviously avid golfers go to ranges, so that’s not a big leap. They have the ability to make the range more fun, more exciting and more engaging for golfers of all abilities.

With our distribution network on a global basis, we can help them do that faster and better. And then what? We can reach consumers. We can add value to both brands and make things more exciting for the consumer in the process. So really we’re doubling down our bet on golf at a time when golf is clearly in a strong position and surging, where we see a big increase in the total addressable market of the business.

Dethier: You mention this interesting split, nearly 50-50 I think, of people who go to Topgolf and identify as golfers versus non-golfers. So my question is this: Is Topgolf golf? And does it matter whether it is or not?

Brewer: That’s a great question; I’ll answer it and then let [Topgolf CEO] Dolf talk. Topgolf is not traditional golf, but it is golf.

There are different types of golf as the game is moving forward, which is awesome. And we should celebrate that. That’s the best thing that’s ever happened to golf, right? It isn’t all tournament golf. It isn’t all country club golf or even private vs. public golf, right? Golf doesn’t have to be a four-hour round on a golf course or a five-hour round or, if you’re playing in college, a six-hour marathon.

And so Dolf and his team at Topgolf are bringing in a whole new aspect to golf. But the metrics show that 75% of the people that are non-golfers and visit Topgolf have a strong desire to then go play traditional golf. Another survey that was just done at the venue showed that half of these non-golfers intend to play golf on a golf course in 2021. So you’re clearly creating new golfers.

Dolf Berle, Topgolf CEO: I think it’s an important question, whether Topgolf is golf. But “golf” itself is much broader than it used to be. Here’s what we know: 49 percent of the people who come to Topgolf venues are, in fact, “golfers,” meaning they play more than one time a year, and there’s a lot for them to enjoy there. But most importantly, they can bring friends who are non-golfers and introduce them to the game in a very accessible way. Those are the 51 percent of the people who come to Topgolf venues as non-golfers and play one or fewer times per year.

And so we just make it easy to start in a fun environment, in a social environment. And you need look no further than the people who play in high heels or work boots or hightops or any number of things that would suggest people are not invested yet in golf gear to understand that for many it’s a first-time experience.

We’ve just really emphasized the fun and the social aspects of it in a way that thankfully introduces many people to more traditional golf, which then becomes a lifetime passion.

Dethier: How tangibly will consumers experience change over the coming year — and, say five years — due to this merger? How will things feel different on site?

Berle: What I get excited about is what the Callaway business and the infrastructure they can provide to help accelerate the progress we’re making globally. They have a remarkable set of relationships and teams on the ground and partners internationally. And that’s a part of our business that’s really just getting going, our international Topgolf venues and also our Toptracer Ranges, which are now in 29 countries. And the excellence that comes with the Callaway name makes for a good partnership with us, an upstart in the golf world, and show that we’re dedicated to being as good as we can be for our business, yes, but mostly for our guests. I’ve always been grateful for Chip’s presence on our board, which helped legitimize our commitment to the best standards in golf.

I could go on for a long time about this, but here’s the point: I think if you’re a child in a foreign country that might, by virtue of your birth, never have felt that golf could be part of your identity or who you are, I think that our companies together could make that more of a reality and more of a possibility for you. And I think that’s a really, really positive thing.

Brewer: You know, my view is that it’s not going to change the consumer experience, really. Topgolf is really good at the consumer experience and we’re not going to mess that up. We’re not changing your names, we’re not changing your teams. But we’re going to help them accelerate, to get even better at their own mission and values.

But the basic consumer experience that one gets by visiting Topgolf or Toptracer Range is really one of the things that we’re so excited about. Consumers love it. It’s not an unproven model. There’s just not a lot of risk with it. The venues work really well, and one of my important jobs as CEO is not to screw that up. Let them keep doing what they’re doing really well and I’m here to add to that; that’s my commitment to the Topgolf team.

Dethier: Should we expect to see Callaway clubs and golf balls in Topgolf facilities?

Brewer: Over time, I think we’ll use that opportunity to promote and expose. We’ll look at different things we can do. We have a fitting center at the Vegas facility. So we’re going to look at that and experiment with a bunch of ideas. It makes sense, right? It would be pretty cool if you go in there and get a high-tech Callaway-endorsed fitting center associated with Topgolf. And there will be other avenues that we’ll look at to enhance the Callaway market share and get exposure.

Irons

Dethier: Will every set and bay be stocked with Callaway? Will the balls coming out be Callaway golf balls and all somewhat standardized?

Brewer: You can’t really do that in your driving range, because — and we love this aspect — they’re not always you or me in terms of golf experience. So you really have to beef that equipment up for the golfer who might be swinging it. We help them design some of that product right now and it has to be industrial-grade or it won’t survive.

Dethier: That’s funny, it hadn’t quite occurred to me the beating those clubs must take, but yeah, that makes sense.

Berle: I should say that in every Topgolf venue, there is the ability to upgrade to premium clubs. And all of our premium clubs are already Callaway.

Dethier: Let’s talk footprint. Looking at your sites so far, clearly you’ve picked and chosen very intentionally. But you’ve continued to expand, and a co-worker insisted I ask if we should expect to see a Topgolf in every town in America. And I wonder, is that part of the vision to get Topgolf ubiquitous? What’s the vision?

Berle: So, the remarkable thing is that by virtue of what we do with our venues and with Toptracer, we really can be fairly ubiquitous.

And let me describe that a little bit more. The Toptracer Range dimension is something we can put in every driving range across America. That’s a licensed product, and therefore our clients are the driving range owners — and we can talk more about what we can do there in terms of pushing content onto the screens and making that more and more exciting.

But to answer your question specifically, what we’ve been doing over these last few years is to expand the types of Topgolf venues that would ensure good returns in different-sized cities. So, to say what might be obvious, you can put a bigger facility in larger towns, in Atlanta and Dallas and Houston and Chicago, etc., have one or more of the 102-bay venues. We have a medium-sized venue type, as we call it, which is 72 bays; examples would be places like Baton Rouge and Tucson and cities that are more medium-sized.

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And most recently we’ve developed a smaller, more flexible single-level venue which can go to considerably smaller towns. And we have two of those built, one in Augusta, Georgia, which you’ve probably heard of. And the other is in Chattanooga, Tennessee. And those are doing quite nicely.

So we believe that there is room for more; we’ve looked around the country to determine what the optimal placement would be. And we believe there is with those three sizes combined that there’s room for 200 Topgolf venues in the United States.

And then by extension, through our franchising, we can go ahead and expand those various size formats across the world which gets you to a number of closer to 450 globally.

And that is where we’re looking today. But maybe the last thing I’ll say is that the team is one that continues to innovate. When I joined the company, for example, we were just getting started on the 72-bay venues and we actually hadn’t even thought through what the smaller venues would look like. And so, knowing this team, I would say there’s more to come.

Dethier: So when you point to that 200 number, you’re talking about Topgolf venues. What about when you’re talking Toptracer Range? As an example, I live in Seattle now. I’m a few minutes from Interbay Golf Center, which is an awesome place, and they have Toptracer Range available for upgrade when you get a bucket of balls. They have leagues available in the winter. If 200 is the number you have in mind for Topgolf, what about for Toptracer Range?  

Berle: We don’t have a specific number that we’re quoting related to that. But let’s just say that we’re in the low single digits today in terms of penetration in that market, at most. And so there’s just a lot of years of growth and excitement in that space.

Chip, I don’t know if you want to embellish, but we’re continuing to evolve in terms of how we work with various driving ranges and so on. We’re not focused on a specific number, but it’s obviously something that can be ubiquitous and it’s an exciting opportunity.

Brewer: There’s a huge advantage of scale that we’d be able to provide there, because as you put it into these facilities, like the driving range you’re referring to, we can have interconnectivity between various locations and we can run contests and tournaments and the scale of the different games we could put in. A player like you can go to that driving range and track your shots and run through a combine if you’re working on your game, looking at it from a better player’s perspective.

But next to you could be a new golfer, a 12-year-old, playing Angry Birds or Go Fish or any Topgolf game. And then you could be competing against friends or people you don’t even know in a virtual tournament, which they’ve already tried out.

Berle: One of the great things about the Toptracer Range technology is that it’s networked, and every shot that is captured on a Toptracer camera anywhere in the world comes back into a central database. And what that allows us to do is to have tournaments that are truly global in scale. And as Chip references, it could be a small tournament, possibly within the same state or between two clubs, or it could be worldwide.

We wanted to prove this to ourselves and to the world, and so last December we did a global tournament, which was a nine-shot challenge, and we had 19 countries and 7,000 golfers participate. And what was fun about it was that we were able to have leaderboards because we did it over just a few days to build excitement, although we could have done it all simultaneously. We built in a social media opportunity for people to trash-talk and we saw the differences in the way, y’know, people from different cultures have different approaches to that part of it, too.

And so this is one of the ways that we’re trying to connect people in meaningful ways, which is what we describe as our purpose. There’s a lot more we can do in the future. And when we do things like that, it allows us also to tie in sponsors who are looking for a global audience and to monetize things like that in a number of ways. So the business proposition is quite interesting in addition to what we can do from the fan experience.

Brewer: And one more thing on that note: If we get all that data, If I have that data as a club manufacturer; if you’re hitting your shots and I notice you’re hitting a bunch of snap-hooks, say, that’s really interesting data for me to be able to target-market, isn’t it? And so you can see how it all fits together.

And what I would want to get across to your readers is that this is obviously an exciting merger. It’s transformational and groundbreaking for both of the companies and it’s a really good fit. But it’s also really good for golf. You know, I started by saying that Topgolf is probably the best thing that’s happened to this business since Tiger Woods, and this is going to be able to accelerate the positive impact that Topgolf is going to deliver to the game, that you and I both love.

Dethier: To finish on that point: Why is it good for golf? Briefly, what works so well about the Topgolf experience right now and how is how is this merger going to enhance that going forward?

Brewer: What works so great about the Topgolf experience now is how it delights consumers and also creates its own flywheel effect of growth. So it creates new golfers who then enjoy the experience more, and then it feeds on itself, et cetera. And we are going to try to accelerate that growth and the market share of both companies by working together. So, exciting times.

The post Why did Callaway buy Topgolf? Their CEOs explain the strategy appeared first on Golf.

The post Topgolf opens first-of-its-kind facility down the road from Augusta National appeared first on Golf.

The post Topgolf opens first-of-its-kind facility down the road from Augusta National appeared first on Golf.

Forget praying you’ll be lucky enough to stroll down Magnolia Lane with a foursome waiting in the wings, there’s now a tee time available for everyone in Augusta, Ga. After a lengthy construction period, Topgolf Augusta has officially opened its doors some two miles from the Masters’ home.

The first-of-its-kind facility is only one story tall, a stark change from Topgolf’s traditional hulking, multiple story blueprints. While there are still 36 hitting bays at Topgolf Augusta, the design’s smaller footprint lowers the building’s profile and helps cut costs. But Topgolf aficionados needn’t fear, the facility still features all of the traditional amenities provided, including range games, restaurant service and Toptracer technology.

The venue was initially expected to open in time for the Masters in April, but construction changes brought about by the spread of COVID-19 forced the company to push back its opening date.

News

What Topgolf Augusta lacks in size it makes up for in amenities. Behind the range is a mini-golf course, fire pits and picnic-style seating — a campus built to provide customers with options in addition to the traditional Topgolf experience. (If you’re interested in seeing how it all looks, you can check out photos of the entire campus here.)

The company’s Augusta design is different from the small-footprint concept it is fiddling with opening in major cities across the United States. Those designs are expected to focus largely on dining and drinking and are unlikely to include a traditional driving range (opting instead for a series of multi-sport indoor simulators).

It remains to be seen how much cheaper the smaller-footprint Topgolf Augusta is from its siblings, which reportedly cost an average of $18 million to open. But irrespective of size, the franchise’s newest location gives golfers something they’ve been craving for years: a tee time in Augusta.

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The post Topgolf, coming to a city near you? Company testing small-footprint concept appeared first on Golf.

The post Topgolf, coming to a city near you? Company testing small-footprint concept appeared first on Golf.

If you’re like many, there are probably two things you associate with Topgolf: 1) the bar and 2) hulking, netted-in structures on giant plots of land that house the company’s golden goose—its game-themed driving range. Soon, in many locations, there could be only one of those things.

Topgolf is a tremendous concept; one that’s reportedly brought the company to 17 million customers annually and a potential $4 billion valuation. But it’s also a concept with a single, inherent flaw: building a Topgolf facility requires lots of land, while reaching the number of customers needed to remain profitable requires being close to large, urban areas. Those two things typically exist in conflict with one another, mainly because of the price of real estate. This is why Topgolf’s nearest location to New York City is more than 40-minutes by car from midtown-Manhattan (without traffic) and without any connection to public transportation.

Instruction

TopGolfer tries Happy Gilmore swing and it goes horribly wrong

For years, Topgolf has found workarounds to build facilities in (or around) big cities. But now, the company is exploring whether the true solution to its real estate problem is to think smaller.

This week, Topgolf debuted its first small-footprint location at a facility in Kirkland, Wash., just outside of Seattle. The facility looks nothing like the 105,000-square-foot behemoth you’ve come to recognize, instead existing in a 9,200-square-foot space within a larger building.

The company managed to downsize its square-footage by more than 90 percent by taking out the driving range. In its place, according to a report by Restaurant and Business, are five sports simulators (named “Swing Suites”). Inside the Swing Suites, Topgolfers can not only participate in traditional golf-based games, but also in other virtual sports like baseball, football and hockey.

Strategically, the focus for Topgolf’s small-footprint design isn’t on entertainment, but on dining. Its “lounge” area can seat 225 people with a full bar and features an extensive menu.

Tournaments

Masters Week gets even better: Topgolf is reportedly coming to Augusta

If you live near a Topgolf and have grown fond of its typical layout, there’s no need to panic. According to the report, the company isn’t planning on shuttering its traditional sites. Rather, it hopes its small-footprint designs will allow it to expand to serve “demographically dense areas.”

That could mean seeing the emergence of Topgolf—albeit in a different form—in the heart of major cities throughout the U.S. It could also lead to the expansion of simulator golf, an area which some feel could be the next frontier for the game. Either way, the expansion of golf into major cities, in any form, is one we’re excited to follow.

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The post Topgolf, coming to a city near you? Company testing small-footprint concept appeared first on Golf.