Just over three years ago, Callaway triumphantly announced the completion of its merger with the Topgolf brand company. The journey began in 2006 with the Californian companys first investment in what was undoubtedly the most innovative company in the world of golf-related entertainment.
Chip Brewer, CEO of Callaway Golf at the time, said: Callaways leadership in the global, geographically diverse golf equipment market combined with Topgolfs revolutionary technology platform, accessible to all, golfers and non-golfers alike, will allow both companies to accelerate their growth and create competitive advantages This merger has already generated, and will continue to do so, a significant increase in shareholder value.
Well, Brewer himself, now CEO of Topgolf Callaway Brands, released a statement with a very different tone. Topgolf is transforming the game of golf, and we expect it to deliver significant financial returns over time At the same time, Topgolf has a different operating model, a different capital structure and a different investment theory As a result, the Board of Directors has determined that separating Topgolf will better position Topgolf and Callaway to achieve success and maximize shareholder value.
The reason for this abrupt reversal is easily identifiable in the collapse of the value of the Topgolf Callaway Brands stock, which has lost nearly 25% since last January (the opposite of what the CEO hopes will happen following the split).
The timetable foresees the finalization of the operation by July of next year, not excluding a priori the sale of the entire Topgolf company itself (the basic divestment plan sees Callaway Golf remaining a shareholder with 19.1%, Editors note).
The truly singular fact is that all this will happen without the need for shareholders approval. Among them there is, coincidentally, also a certain Jon Rahm, the main brand ambassador of the brand who, as is known, plays in a League supported by the Saudi Sovereign Fund.
And it so happened that, just yesterday, an agreement was announced between Topgolf Callaway Brands and Golf Saudi. The agreement is very broad, ranging from the opening of 3 new facilities (to begin with, Editors note), to the franchising of the Toptracer technology up to the distribution of the products of the brands that are under the Callaway Golf umbrella.
The rules of golf are relatively complicated compared to other sports because they are played outdoors, close to nature and animals. Respecting the rules is a basic element in the game of golf, which, almost always based on self-control and the free conscience of the players, often sees distorted results, sometimes consciously, but often unconsciously or through carelessness, due to the failure of many players to comply with the rules of the game.
In addition to the rules, golf adheres to a code of conduct, known as etiquette, which generally means playing the game with due respect for the golf course and other players. Etiquette is an essential component of this sport.
