Category: Business

Golf is big business. The most recent figures shows that the golf economy comes to more than $60 billion. Compare that the movie industry’s $57 billion. That’s bigger than the Gross Domestic Product of Peru, Romania, Ukraine or Morocco. How big has golf become? In 1958, Arnold Palmer was the PGA Tour money leader, with $42,000 in winnings. In 2005, Vijay Singh won a little over a million in just two tournaments. This section is devoted to the business of golf.

Ashworth Cuts Deal With USGA

Ashworth recently released its year-end statement, and for the most part, it was the usual yada-yada about company efforts to reduce costs and increase sales. Buried at the bottom, however, was an interesting tidbit.

The Company recently signed a contract with the United States Golf Association ("USGA") to serve as the lead apparel vendor for the U.S. Open for the 2006 through 2009 seasons. This achievement represents an unprecedented second term agreement with the USGA following the initial four year term in which Ashworth captured lead apparel vendor status for the U.S. Open in the years 2001-2004. For the 2005 U.S. Open at Pinehurst Resort, Ashworth and the Pinehurst Resort team fielded the largest merchandise pavilion in the 105 year history of the U.S. Open at 38,000 square feet.

I also did not realize that Ashworth produces the Callaway line of golf clothing.

December 22, 2005 |  Category: Business
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Huge Rating Increase For TNT With PGA Grand Slam

TNT reports that it experienced a 47% ratings growth over 2004 with this year’s broadcast of the Grand Slam of Golf. Even biger numbers: TNT says that it experienced a 92-percent increase in males 18-49, an 81-percent increase in males 25-54 and a 78-percent increase in adults 18-49.

Call it the Tiger factor. When Tiger plays, people watch.

Remember 2004’s lineup?: Phil Mickelson, Vijay Singh, Retief Goosen and Todd Hamilton.

Now look at 2005’s: Tiger Woods, Phil Mickelson, Vijay Singh and Michael Campbell.

There is no doubt that the addition of Woods resulted in a lot more starpower.

Executives at TNT are praying that Woods wins another major next year.

December 6, 2005 |  Category: Business
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PGA Merchandise Show Expands Focus

For years, the PGA Merchandise show has been a candy store for golfers (not that I would know ... ordinary golfers don’t get invited.).

But now the toy show has added a slew of new programs, including programs to “help attendees grow their business, advance their careers and drive new participation in the game.” For example, there’s a “Teach The Teacher” program to help PGA professionals learn new techniques. And at the “Learning Labs”, PGA professionals will learn advanced merchandising techniques.

They’ve got to do something. I’ve read article after article recently talking about slumping interest in the game. And that will lead to slumping sales.

I have one idea. They could fly the GolfBlogger down to the event, and I could blog live from the show. I’ll try out the new stuff, and then post my opinions within a few hours.

Hey. I can dream, can’t I?

November 16, 2005 |  Category: Business
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Jumbo Ozaki Bankrupt

Japan Today has a story about the sad fall of standout Japanese golfer Jumbo Ozaki. Having not won a tournament in three years, Ozaki declared bankrupcy following the collapse of his side businesses.

It’s sad, but that’s not what’s so interesting about the article. What’s interesting is that the new stars in Japanese golf are the female golfers.

“Once, we could expect to sell 20,000 drivers of the same sort used by a male pro,” said a golf equipment industry representative, “but recently, the driver that Miyazato uses — the V-iQ — has become a blockbuster, selling hundreds of thousands. Manufacturers are turning to women golfers to endorse their products and the men are being squeezed out.”

Could something like that be on its way in the United States? I doubt it. But there is no arguing that the new breed of female golfers have an appeal of the type not seen since ... well ... the young Tiger Woods.

November 14, 2005 |  Category: Business
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PeakVison Has Bright Future

An article at BizJournals explores the growth of PeakVision, a maker of specialty sports sunglasses. The shades, which are made of the same material as Apache helicopter windshields have dual zone lenses—grey on top, and amber on the bottom—to block out UV rays, while till allowing you to read a green.

Unable to break into the big distributors, the company has used alternate marketing channels to reach $100,000 in monthly sales.

November 10, 2005 |  Category: Business
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