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What’s working so well for PGA Tour Superstore? CEO Dick Sullivan explains

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Popular perception suggests golf retail, particularly the large scale, brick-and-mortar variety, is under siege. So, I was intrigued by PGA Tour Superstore’s recent announcement of 15 percent same-store sales growth year-over-year and even more intrigued by the company’s plans for expansion (adding 19 stores over the next three years).

The company also saw a 42 percent growth in e-commerce sales and performed over 100,000 custom club fittings last year across its 31 retail stores. PGA Tour Superstore opened four stores in 2017 (Glendale, AZ, Hilton Head, SC, Jacksonville, FL and Las Vegas), with plans to open at least five in 2018.

I spoke with PGA Tour Superstore President and CEO, Dick Sullivan, about the company’s unique approach to retail and the state of the golf retail marketplace in general. Sullivan was an executive at Home Depot and the Atlanta Falcons prior to his appointment as head of PGA Tour Superstore in 2009.

Ben Alberstadt: Tell me a little bit about the PGA Tour Superstore model and what’s working for you.

Dick Sullivan: We take a lot of our same values that we had at Home Depot in terms of how we take care of our customer. In our case, we’re much more than…buying products off the rack. Anybody can do that. In our case, it’s so much more important that we bring the level of assortments, the level of service, and a level of experience that consumers really want. A lot of other retailers have tried to bring, say, a high level of service, but they just can bring the…assortments we bring because of the size of our stores…They’re 40-50,000 square feet.

We make multi-million dollar investments in technology every year to make sure that what our customers see inside of stores is really what the pros will see and what all the OEMs are using in terms of fitting.

In addition to the technology that we have, we hire PGA Pros in our stores. Just like Home Depot, where if you don’t have the right people on the floor…that’s a problem. We go out and we seek the best in class in golf, whether it’s students coming out of academies, whether it’s coming out of green grass shops…it’s really important to our customers that we have that level of expertise.

The broad assortment that we carry, not only the hard goods side but on the apparel side, are also important to our customers as well. And we don’t just sell products. We gave over 50,000 lessons last year. We fit over 100,000 customers. We put on over one million grips….We have large-scale putting greens. We have hole-in-one contests. We do closest to the pin. We do other contests.

BA: I don’t want to ask you for the recipe for the secret sauce, but can you talk a little bit more about applying the Home Depot model.

DS: Well, there’s no commission at all. If a customer comes in and doesn’t want to buy anything that day, that’s fine. We’ll have people come in…and say, “Well, I wanted to buy a new set of clubs, but an associate told me I should take a lesson first.”

Another thing is, our company has an inverted organization chart. Those who are closest to the customer are the ones who are in power to make decisions. Those at the bottom–the chairman, the CEO–we help facilitate and deal with challenges and obstacles…Every single day [information is coming back from the store]…and the customer is at the top. The customer is king…the associate is right below them in terms of the org chart.

Our associates solve problems on the floor of the store. They don’t have to go through some bureaucratic system or political power to make decisions. So, it’s a great experience for our customers.

BA: That sounds like it would yield both fluidity and continual optimization of the in-store experience for the customer…

DS:  Just like in the pro shop. You want that golfer to feel like they are king. Our associates get to do the things with our customers that competitors can’t…You think about the simulators inside our stores. That experience alone…the hole-in-one contests…things like that, those are the fun things our associates get to do. Lessons with kids on Saturday morning. All that stuff is really fun.

BA: It seems like you’re putting a premium on relationships and the service element, where others might sometimes feel that it’s not worth an investment, so it’s interesting to see you defying that line of thinking.

DS: Well at Home Depot, and Arthur [Blank] taught me this about 26 years ago: Our associates are not an expense, our associates are an investment. And another thing I’ll never forget him saying: “We’re not in the transaction business, we’re in the relationship business.”

We have nine-hole leagues. We tested them in Minnesota, and our customers really gravitated to it..It’s really fun for families to come in and play…There’s some wonderful new technology that’s out there that’s allowing us to do some unique things.

In the cold-weather months…we have not only one dozen-plus simulators in every one of our stores, but we have these practice bays–almost like an indoor driving range…that’s different. That’s an experience. Someone used the term “retailtainment.” I’d never heard that term, but I thought it was a good term.

BA: Another interesting element here is you’re doing very well online. Can you speak to that?

DS: Well, we have a 50-year license with the PGA Tour. When we did the deal with Tim Finchem…there was no license of that length. We believe strongly in the brand of the PGA Tour. They’re at the top of the pyramid. When you think of golfers, you think of the PGA Tour. The PGA Tour brand reeks of quality. If I said, “Volvo,” and I said, “give me the attributes of Volvo,” by the second, third, or fourth, you’d say “safety.” So when I say “PGA Tour,” it’s usually “high performance,” “quality.” All those things help us in the virtual space…versus “Bob’s Discount Golf” or something like that.

Second, the assortments that we have are just phenomenal.

Black Friday. I remember an article that said, “this is the death of Black Friday.” This was supposed to be the first time that consumers shopped online…at the level of 59 percent. It made me a little nervous. Across the company we had a 28 percent increase that Black Friday, and we had a 98 percent increase online. Then we were up 62 percent on Cyber Monday.

A few years ago, we didn’t have quite the national footprint and the name recognition…I think that footprint has helped us grow our e-commerce business, along with the reputation the PGA Tour brings.

BA: Given the success that you’re seeing, do you think there’d been some fundamental misunderstanding of the golf consumer, or was it just an element of common sense that was lacking?

DS: At the end of the day, the customer votes. We all know that. And I think some organizations maybe have an arrogance in thinking they have all the answers, and they push those decisions down. As I said, we have the reverse: Our associates listen to our customers. Our customers tell our associates what we can do better, and we make those changes.

One of core values is listening and responding. Putting our people first. Innovating. There’s a number of values that we’ve taken from that model of Home Depot and brought it over. The assortments that you see, the size of our stores, that didn’t exist 15 years ago…and I think the level of service, the investment in people, was never happening. And then the investment we make in technology…it’s not just magical marketing that convinces people they need to buy. They can actually see it [by hitting the club on an in-store simulator].”

BA: I think there’s such a level of skepticism at this point that marketing claims are so in-one-ear-and-out-the-other that the best thing OEMs can do, if they really believe in their technology, is to say “go try it out on a launch monitor.” We’ve reached critical mass in terms of marketing speak.

DS: Yeah. Getting fit is not just the little box on the floor and if you swing 88 mph you’re a regular flex…it’s come a long way over the years, and I think we recognize that. That makes it fun. And it makes it more challenging, because the product actually has to perform. It’s not marketing claims; people can actually see the results. Spin rate. Launch angle. All that. And if you’ve got the right fitters, they can quickly dial you in. And we fit for golf balls. It’s amazing to see people come in and get fit for golf balls

BA: That should be the direction of retail. That’s the stuff that really makes the difference, along with lessons. That’s what’s going to enhance how well a player plays and how much s/he enjoys the game.

DS: And if it doesn’t work on the course, they can bring it back. We want people to be happy. It’s fun to hear these stories on course about how a player changed his ball or changed equipment. And they’re all out there fighting for market share. There’s some unbelievable manufacturers. We just came off of a weeklong training session with hundreds of our associates at Streamsong…all the major manufacturers are represented. Every one of our associates goes through extensive training on products…our associates know as much as the reps know.

BA: To circle back, initially, I’m impressed by the scale of the operation, the growth year-over-year, but so much of what you’re doing seems almost like a small business in terms of attention, in terms of investment in employees, it terms of relationships with customers and not being as transactional in orientation. I think that’s a really interesting element of the story.

DS: Hopefully we’re never so big that we change the culture of our company. The investment we making in training…we believe in training probably more than any other retailer out there. It’s so important our associates come well trained and are able to work with customers, because this is not easy stuff. It can be overwhelming.

BA: That’s the point the consumer is at, I think. Technology has become so sophisticated that you either need to do a ton of research or you need help. You need background knowledge in addition to knowing about specific offerings, or, again, you need help.

DS: Right. And we try to make it all simple. We don’t just focus on the avid golfer, we cater to juniors, women, seniors, everyone. That’s part of our whole model.

But we’re growing. We’re going to double the size of our company over the next four years…basically open a store every other month. We see a lot of opportunity. There’s a lot of real estate out there. There’s plenty of real estate in some markets we haven’t been in, and customers are calling and writing asking when we’ll make it to those markets, so you’ll see us growing in some new places over the next three or four years.

BA: Great. Any final remarks on the state of the industry?

DS: Most people call me up and say, “What’s wrong with golf?” I say, “What’s wrong with golf? I don’t think there’s anything wrong with golf.” Golf Channel just announced there were more viewers than January than ever before. Golf rounds have stabilized. We’re bringing more kids into the game than ever.

I don’t want to be falsely optimistic, and certainly there are some things that still need to be fixed, but there’s certainly more positives in golf now than not and the buzz at the PGA Show was great. You know, there were lots of clouds the last few years…but I felt a real positive buzz at the show, more so than I have in many years. I think that bodes well for the game, whether it’s outdoors, or whether they’re coming inside and hitting on simulators, just as long as they’re having fun with a golf club in their hand.

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10 Comments

  1. Bill

    Feb 12, 2018 at 12:32 pm

    This dude should do undercover boss or something. He’s delusional if he thinks half of his stores operate this way. Also the WORST repair service I’ve ever seen…or at least close to it.

  2. Jon K

    Feb 12, 2018 at 11:11 am

    First of all, sales were up for one simple reason–no more Golfsmith. And for all the smart sounding talk about “great customer service” and “our employees are an investment”, PGA Superstore is just another big box retailer that likes to hire a lot of part-timers, pay them very little with no benefits, and provide no incentive for sales people, nor provide any of them a means to actually make a living in golf retail. Just look at the turnover. Also, golf and golf retail is a very specific world with its own culture and values. Big box retailers lack the authenticity and the integrity of a real golf shop, or of a great independently owned store like Carl’s Golfland.

  3. alexdub

    Feb 12, 2018 at 10:29 am

    I go to PGATSS for one reason — the fitting bays. I may just be stopping in to buy a grip or something small, but I’ll stay for 45 mins and try the new drivers in the simulation bay and roll some putts. I think PGATSS does a great job with the model they are implementing.

  4. Reeves

    Feb 11, 2018 at 12:11 am

    The day you walk in and the price of a Callaway, Taylormade, Ping etc. product is at a discount over the OEM controlled price is the day I will know they have something special to offer…to many years the OEM’s have been able to control prices on new stock and even one and two year old models. Time this price fixing comes to an end…if a retailer wants to sell the $499 Callaway driver for $429 then he should still be able to carry and sell that item..OEM’s should not be allowed to price fix period.

    • peter collins

      Feb 13, 2018 at 6:34 am

      I can’t abide any form of price fixing

  5. allan duncan

    Feb 10, 2018 at 6:48 pm

    If you want to see how not to operate a golf store, please come to Myrtle Beach and sit back a laugh.

    • Steve P

      Feb 10, 2018 at 8:09 pm

      Totally correct! i was there last summer over the 4th of July for the Ripken baseball tournament for my son. As someone in golf retail for 25+ years I wanted to check out their store as we don’t have one in our market. It was the dumpiest large golf store I had ever set foot in! This, in one of the largest golf destinations in the world!
      I couldn’t believe how sad it was. I bet I could increase their sales 50% at that location within 6 months.

      • Matt B

        Feb 11, 2018 at 8:15 am

        I too agree. I have been going in these MB stores for years. Love the merchandise options but the staff is rude and overbearing.

  6. Joe D

    Feb 10, 2018 at 2:36 pm

    There is one in Irvine, about an hour away. If only it was closer. I’d pay the $99 and you get 30 minute launch monitor sessions for a year.

  7. Bruno

    Feb 10, 2018 at 12:49 pm

    Visited the Las Vegas store and it was like a boy in a candy store. I bought some overpriced tees and fled before I made a big mistake. 😎

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Danny Willett spotted with new Odyssey prototype putter, putter shaft

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You may have seen Danny Willett’s name near the top of the leaderboard at the DP World Tour Championship in Dubai. At 10 under, the Englishman sits one stroke behind fellow countryman Matt Wallace.

You may not have seen, however, that the 2016 Masters champ has a new Odyssey prototype putter in the bag.

(Photo by Andrew Redington/Getty Images)

(Photo by Francois Nel/Getty Images)

All the company would say

“Willett first put in his new gamer last week at the Nedbank Challenge. Willett’s prototype putter also features a new prototype Odyssey shaft to help improve the consistency of the putting stroke.”

Willet has historically favored his blade-style Odyssey O-Works #1 W. More recently, at the Turkish Airlines Open, we spotted him with an Odyssey Versa Jailbird Black. However, the prototype in question is clearly a heel-shafted mallet with a different insert than the 1 W or the Jailbird. The insert looks to be the White Hot Microhinge. Obviously, the two-tone, potentially multi-material, shaft, and the technology therein, is notable as well. Also apparently two-tone, the putter head, which looks similar in shape to a Tank Cruiser and similarly has a pair of sole weights.

Do we need the TG2 to break down the few photos we have like the Zapruder film? We’ll continue digging, in the meantime, let us know what you think, GolfWRX Members!

 

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McIlroy snaps back at McGinley criticism: “Next year, I’m looking out for me”

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Earlier this week, Rory McIlroy suggested that he would leave the European Tour in 2019 which produced criticism from Irish golfer and analyst Paul McGinley, who called the decision “extraordinary” and “hard to understand.”

McIlroy, who is currently in action at the DP World Tour Championship in Dubai, indicated before the event that he would only play in two “pure” European Tour events next year. When told about McGinley’s negative reaction to the news on Thursday, McIlroy hit back in unrepentant style. The 29-year-old defiantly expressed how 2019 will be the year he puts himself first in a bid to end a major drought dating back to 2014, while also suggesting that just like himself, McGinley has his own interests in mind.

“McGinley is on the European Tour board. He’s involved and he has to protect what he has, and I get it. Everyone has to do what’s best for them and for me next year I’m trying to do what’s best for me to help get back to the best player in the world and try to win majors again.”

Should McIlroy decide not to renew his European Tour membership for 2019, he would be unable to captain his continent in future Ryder Cup’s, due to a European Tour rule introduced last year. When asked about his thoughts on that particular issue, McIlroy appeared to show no concern, bluntly replying: “It’s 20 years away”.

McIlroy confirmed that he had met with European Tour chief executive Keith Pelley in South Africa last week to brief him on his plans for 2019. But while the move to quit the European Tour looks increasingly likely, McIlroy was not ready to drop any bombshells in Dubai, and even poked fun at the controversy, stating

“Geez, I’d cause all the stirs in the world if I go back to winning majors. Next year I am looking out for me. At the same time, I don’t have to make a decision on it. I didn’t say it was a definite. It is up in the air. We’ll see how it goes.”

McIlroy has until next May to decide whether or not to renew his European Tour membership for 2019.

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GolfWRX Morning 9: McIlroy: Looking out for No. 1 | Ogilvy: Aus. Open is “second class” | Hole-in-one: yardage unknown

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By Ben Alberstadt (ben.alberstadt@golfwrx.com)

November 16, 2018

Good Friday morning, golf fans.
1. Kuch Down Under + player doesn’t know hole distance, makes hole-in-one anyway, wins $17K watch
Matt Kuchar went, “from Hola to Aloha,” at the Mayakoba Classic, to continuing his strong form some 9,000 miles away at the Australian Open.
  • Aus. Associated Press…”South Korea’s Byeong Hun An has sensationally reclaimed the Australian Open lead with a hole-in-one late in his second round.”
  • “Starting Friday with the lead at The Lakes, An watched as American Matt Kuchar and Australian amateur David Micheluzzi entered the clubhouse at seven under par after playing in the morning wave.”
  • “But An shot back to the top of the leaderboard with an ace at the 197m par-3 15th that rocketed the former US Amateur champion to eight under.”
  • “Hit it good, nice fading back to the hole and went in. This is my third one but first with a prize,” the smiling Korean said after earning himself a $17,000 Swiss watch. “It was a soft seven iron. I didn’t even know the distance. My caddie just said to hit seven iron and take five (metres) off.”
2. …of course, also on the subject of the Australian Open…
Geoff Ogilvy, one of the most eloquent and outspoken major winners from Australia had some strong words about the state of his national open.
  • Golfweek’s Kevin Casey on Ogilvy’s remarks’…”Unfortunately, the Australian Open appears to be stuck in a bit of a rut. Tiger Woods has participated in the event and past winners include Jack Nicklaus, Gary Player, Tom Watson, Adam Scott, Rory McIlroy and Jordan Spieth.”
  • “But in this week’s edition, Scott, Jason Day and Marc Leishman are famous countrymen who have decided not to be a part of the field.”
  • “It signals the continuing issues the event has with getting the strong fields it used to. And Aussies can’t help but take notice.”
  • “I hate to say this, but the Australian Open feels like a second-rate tournament now,” Geoff Ogilvy said, per Golfmagic.com. “I’m sure it is run in the same way it was 30 years ago, but tournaments elsewhere have progressed so much, and the differences show.” [NOTE: Golfmagic.com pulled from Ogilvy’s exclusive column for Golf Australia]
3. Meanwhile, in Dubai…
The official game story from EuropeanTour.com…”Jordan Smith and Adrian Otaegui shared the lead after day one of the DP World Tour Championship, Dubai as Francesco Molinari tightened his grip on the European Tour’s season-long crown.”
  • “Smith and Otaegui carded rounds of 66 at Jumeirah Golf Estates to sit at six under, one shot clear of defending champion Jon Rahm and Major Championship winner Danny Willett….Italian Molinari knows a tie for fifth with one other or better will secure him the Race to Dubai title and he was just a shot further back after a 68 on the Earth Course.”
  • Defending champion Tommy Fleetwood needs a victory at the eighth and final Rolex Series event of the season to have any chance of denying Molinari, and the Englishman was three shots off the lead after a 69.

Full piece.

4. And at Sea Island…
Unofficially, a Titleist man now, Chucky Three Sticks got off to a stellar start at Sea Island.
PGATour.com’s Sean Martin…”Charles Howell III knew he needed to take advantage of Thursday’s tee time on Sea Island’s Plantation Course.”
  • “It was cold and windy during the first round of The RSM Classic. The inland Plantation Course, with its tree-lined fairways, protected players from the worst of the weather, though. Plantation played nearly a stroke under par Thursday, while players averaged more than one stroke over par on the Sea Island Resort’s Seaside Course.”
  • “Howell lowered Plantation’s scoring average even more with an 8-under 64 that gave him a two-shot lead after The RSM Classic’s first-round lead…He hit every fairway and every green for the first time in his career. It was the seventh time he hit all 18 greens in a single round.”
  • “I think sometimes playing these difficult conditions it forces you to stay a bit more present, it forces you to stay kind of in the moment a bit,” he said. “It’s hard to get too far ahead of yourself because of the difficulty of every shot coming.”
5. Closing stretch of the Race
Ron Sirak…”Nothing like the prospect of winning $1 million to mess up your mind a wee bit. In the final Race to the CME Globe before the CME Group Tour Championship changes its format, the five players who can win the bonus by winning here find themselves looking up at Amy Olson with Nasa Hataoka having the best view.”
  • “Olson blistered Tiburón Golf Club for a nine-under-par 63 in Thursday’s first round of the LPGA’s season-ending event while Hataoka, one of the five with one hand on the bonus, was a stroke back along with Brittany Lincicome after a birdie barrage on a Tiburón course softened by early morning rain.”
  • “The 63 by Olson, who teed off in a drizzle in the second group, was one off the tournament course record by Lydia Ko in 2016. Hataoka nearly matched her, making eight birdies, including the final two holes, while Lincicome would have shared the lead if not for a bogey on the final hole. Lexi Thompson is at 65 with Carlota Ciganda at 66 and Lindy Duncan and Pannarat Thanapolboonyaras at 67.”
6. McIlroy: “I’m doing Me-Ilroy”
Well, that’s not exactly what the Ulsterman said, but essentially…
  • And while he’ll attract criticism, rightly or wrongly, it’s worth noting the extreme degree of selfishness required to be the best (perhaps something McIlroy has been questioned for not having in the past). If one wants to be the best golfer in the world, prep for and peak at majors, playing the vast majority of one’s golf on the PGA Tour is the only route. With all due respect to Justin Thomas, it is the route nearly ever recent No. 1 has taken. And Rory should act differently because he is…from Northern Ireland? What sense does that make?
  • Via Alistair Tait at Golfweek...”Everyone has to look out for themselves and next year I’m looking out for me,” McIlroy said. “At the same time, I don’t have to make a decision on it.”
  • “I didn’t say that it was a definite. It’s up in the air. I don’t have to make a decision till May. We’ll see how it goes. McGinley is on the European Tour board, he’s involved and he has to protect what he has and I get it.
  • “Everyone has to do what’s best for them and, for me next year, I’m trying to do what’s best for me to help get back to the best player in the world and try to win majors again.”
7. Rounding out the lineup
The steady drip of details/stuff they’ve just figured out continues with the announcement of the, well, announcers.
  • Golfworld’s Stephen Hennessey...”Tiger’s buddy Charles Barkley, along with Samuel L. Jackson, will work as special guests of the pre-match coverage, and they’ll also contribute during select moments of the actual competition, according to event organizers. Long-time TNT Sports anchor Ernie Johnson will provide the play-by-play, and Peter Jacobson and Darren Clarke will offer their analysis as color commentators.”
  • “Current PGA Tour pro Pat Perez, who like Mickelson and Woods grew up in California and competed against Tiger as a junior golfer, will also join the pre-match coverage with Bleacher Report’s Adam Lefkoe. LPGA star Natalie Gulbis and FOX Sports reporter Shane Bacon will provide reports from inside the ropes.”

Full piece.

8. Inside Kuch’s switcharoo
I talked with a few of Bridgestone’s ball wonks about staffer Matt Kuchar’s ball switch ahead of his Mayakoba win.
  • One of those changes: his golf ball. Now, given Kuch’s club head speed last year – 107.97 mph (183rd on Tour) – your wouldn’t have thought the happy warrior would  switch to a lower-spinning golf ball. However, that’s just what he did, making the move from Bridgestone’s Tour B XS to its Tour B X. And according to the company, he did so after a recent fitting session in which he was driving the X seven yards farther than the XS.
  • I had a chance to ask , and Adam Rehberg, the company’s Golf Ball Fitting Manager, about the switch.
  • So, what was the thinking/data that had Matt Kuchar playing the XS originally?…Elliot Mellow, Bridgestone’s Golf Ball Marketing Manager: “Matt had historically been in our higher spin spec – he appreciated the spin control into and around the green. For years, the B330-S and then the Tour B XS, allowed Matt to hit his windows and optimize trajectory. As he started to reevaluate his fit, there were really two things in play here that allowed the door to be opened for Matt to explore a more distance spec ball: Over the years, we have continued to soften the covers of all Tour balls. So in our distance spec, the Tour B X, you really don’t sacrifice spin for distance, it still is a great spin control ball with irons and wedges. The other thing to consider is some of the club set-ups for Matt have changed, which allowed us to reevaluate his fit.”
9. Debating the left-foot flare
For something a little different, here’s a piece from our Rod Lidenberg that we published late yesterday. Lidenberg debates the merits of the flared left foot at address (ala Ben Hogan’s suggestions). Needless to say, it’s awakening a strong response from the GolfWRX readership.
  • A taste of Ron’s argument...”The subject of this piece is not to debate Hogan’s hip action but the piece that accompanied it, the 15-degree flare of the left foot. I’m of the opinion that it is not only wrong. Because of its toxic nature, it is DEAD WRONG.  The reason has to do with the tailbone, which determines the motion of the hips in the swing. The more the left foot opens up at address, the more the tailbone angles backward. That encourages the hips to “spin out” in the downswing, which means they have turned before the player’s weight has been allowed to move forward to their left foot and left knee.”
  • “As a consequence of the hips spinning out, players move their weight backward (toward the right foot), encouraging a swing that works out-to-in across the body. You can see this swing played out on the first tee of any public golf course on a Saturday morning.”
  • “The problem with the 15-degree foot flare is that it promotes, if not guarantees, the following swing issues:…In the backswing, the flared left foot: 1: Discourages a full left- hip turn. 2: Encourages the improper motion of the left-knee outward rather than back. 3: Reduces the degree that the torso can turn because of the restrictions placed on the left hip.”
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