Was thinking about this over the weekend, how much will Spieth's success help elevate Under Armor's golf penetration? How long until they are in the club/ball market, if ever.
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"Left field thinking, but what if they bought the golf arm of an established company such as Wilson?"
What if UA bought Titleist?
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"Left field thinking, but what if they bought the golf arm of an established company such as Wilson?"
What if UA bought Titleist?
I doubt under Armour could afford Acushnet
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Acushnet's earnings before interest, taxes, depreciation and amortisation rose from $120 million at Fila Korea's acquisition to an estimated $185 million in 2014,
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Three reasons they won't get into the equipment market any time soon:
-Margin is comparatively terrible.
-Market is comparatively terrible.
-Capital outlay is immense. (They would need to buy out a smaller outfit like Cobra OR start from scratch -- but even Nike purchased and/or licensed all of Titliests patents for their blades. Then, after spending gobs of capital on the product, they would have to pay $100M+ annually to keep elite players using their stuff.)
Ain't gonna happen....
It makes a whole lot more sense to keep selling overpriced shirts, socks and underwear and paying their players much less. Players like Speith are happy because he gets to choose his equipment AND he gets paid.
quote:Just curious, how is the golf industry declining? I thought it was on the upswing(lol)
The golf industry is declining. Seems like it would be a pretty terrible move to get into equipment. Their business model is based on apparel, and I think they'd be wise to stick with it. They can stick with their core and grow their share of the golf market through clothing, shoes, gloves, and other apparel related accessories, without risking investment to get themselves into different portions of declining industry.
quote:The number of rounds played per year has been declining consistently the last few years. That's why you see initiatives to play faster or make the game easier to appeal to more people.
The golf industry is declining.
quote:I'm sure they do, too. They are all busy producing counterfeit Nike, Titleist, Taylor Made, Calloway, etc...
I'm sure the Chinese have some of their own domestic golf companies, but giants like Nike and UA undoubtedly see huge untapped potential in the golf industry.
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Blame it on urbanista hipster bags who find golf courses as a waste of land and water resources