Golf is good for business. A recent analysis says that the Open Championship says that it will generate more than £80 million (about ($127,544,000) for the surrounding Kent county. Press release follows:

I was at scout camp last week and missed much of the news, but a story about Callaway replacing its executives intrigued me. It seems the company is in a bit of trouble:

Callaway’s problems are evident across various parts of its business:

• Sales in the critical metalwoods segment, the high-margin category on which Callaway built its brand in the 1990s, continue to lag. That segment accounted for $305.9 million in sales in 2007, but fell to $225.4 million in 2010.

• Despite Callaway’s acquisition of Top-Flite in 2003, the company has struggled to gain traction in the ball business. Total ball sales were $176.5 million in 2010, the lowest level since 2003, before the integration of Top-Flite.

• Domestic sales have been in decline, falling to $468.2 million in 2010 from $597.6 million in 2007.

• Callaway’s efforts to build its international business have met with mixed results. International sales peaked at $563.2 million in 2008, but fell to $495.5 million in 2010. Annual sales in Japan rose from $103.4 million in 2005 to $166.5 million in 2008, but since have been flat, finishing 2010 at $164.8 million. European sales, which reached $193.3 million in 2007, fell to $130.1 million in 2010 – far below even the 2005 level ($166.2 million).

I’m going to suggest that Callaway get radical in its efforts. De-emphaize the traditional marketing via pro staff and focus on getting clubs into the hands of “rain makers.” As I’ve written before, I don’t know anyone who buys a club because Pro X plays them. I do, however, know people who buy clubs and balls because their friends like them, because their pro recommended them, because they liked them at a demo day, or because a blogger wrote about them.

The tournament formerly known as the “Bob Hope” has gone the way of the “Crosby Clambake” and the Glen Campbell Invitational. Corporate branding has killed yet another historic name. Now, the pro-am will be known as the “Humana Challenge.” The event also has shifted from a charity-based function to an “issue-based” event. The issue is health care, and former President Clinton will be the figurehead.

Larry Bohannan also has an interesting article on the difficult negotiations that had to be worked out to save the tour stop.

Although the final tally is not significant, Gen Y—those 18 - 29—increased their golf spending by 27% between 2007 and 2011, according to American Express. Seniors, in the meantime, spent 21% less. Gen X and the Boomers spent 19% less.

But those totals are deceiving. Even with the increase, Gen Y comprises just 1% of golf spending. Boomers account for 56%.

Still its encouraging. Now what golf courses and manufacturers have to do is to figure out ways to keep the Gen Y players they have and add to that total. I’m not at all sure how you do that, though. There are quite a few Gen Y guys in my golf league, and I get the sense that for them its less about golf than about hanging out, drinking beer and smoking cigars. Golf is just one excuse—they also camp, fish, and hang out at the Moose Lodge—for a little male bonding.

He hasn’t won in two years, but Forbes reports that Tiger Woods still is the world’s highest paid athlete.

Forbes counts not only winnings, but also endorsement fees and the like. Tiger’s annual income has fallen by $50 million over the last couple of years, but at $75 million annually, he still tops runner up Kobe Bryant, who clocks in at $53 million. LeBron James was third at $47 million, while Phil Mickelson was fourth at $46.5 million.

Fila has bought Fortune Brands’ golf assets, which include Titleist and Footjoy. It’s not exactly what I predicted—my choice was UnderArmor—but the principle is the same: a sporting goods company that, with the purchase of Titleist, would have instant credibility in the golf world.

One report says that Callaway and the private equity firm Blackstone are combining forces for a bid on the golf assets of Fortune Brands: Achusnet/Titleist/Footjoy.

It has to be for the golf ball patents. They’ve already got a fairly well established “Callaway” brand in all the competing fields.