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The Australian golf industry from the inside: Tiger in 2000 or 2017?

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The interview had gone well, and I was seeing plenty of nodding heads around the table as I presented my vision for golf retail to the board of the biggest golf retailer in Australia. Then came the question

“So, how big do you think the market is in Australia?”

Reflecting on how many courses there were around the country and the retail footprint across the states, I did a quick calculation in my head.

“Somewhere around $350-400m would be my best guess.”

“Most people think it is that or higher, but it isn’t even close. We are nearly half the market, and $100m is still a way off in the future.”

I had recently come out of a buying role in a supermarket chain where sales of bottled water exceeded the entire golf retail sector in Australia. This was going to be a change in mindset, but as a golf nerd who loved hearing about all of the intricate details of products, if they offered me the role, I was taking it.

In what I thought was another test, due to time zone differences, my interview was on the Monday morning of the Masters tournament of 2015 — the historic win by Jordan Spieth. Despite the significance, the win would not have been mentioned at all apart from my small talk on the way into the room.

At the time I thought this may have been a power move, but in reality, this was an example of the focus of what was going to move the needle for the stores. To see a blip on the sales radar in Australia, it either had to be an Australian, or Tiger. Preferably Tiger… Nobody else had the ability to affect sales.  As a passionate golf fan, this was tough to stomach, but soon enough, commercial reality washed over me too. Golf was important, and our reason for being there, but sales was the final consideration.

With commercial realities setting in, it was eye-opening to see the incredibly slow turnover of sales for many item categories in the store. Having spent several days out in stores, it became clear that stores in winter would often struggle to get double digits of people through the doors each day! With that turnover, every possible profit dollar per customer is golden.

This means that deep discounts, loss leaders, premium Titleist balls and other price-based retail incentives are difficult to sell to franchisees as this reduces the margin of each individual sale as it walks out the door. With so few sales coming in, the conversation around investing in one customer to bring in the next becomes far more difficult. In the heady days of Tiger 1.0, people were lining up at opening to pay full price for anything. Biggest Big Berthas were selling for $1,000 AUD and growth was basically assured. The landscape in 2015-16 was quite different.

All of this contributed to my attitude in product meetings moving from the ‘kid in the candy store’ to ‘can we get this exclusively, and please make sure we get enough 10.5-degree regular flex drivers this time!’. Unfortunately, the stiff flex blades (which I coveted personally), would go into stores and gather dust for much longer than the game improvement 5-PW sets, so that is where the stock orders went.

Another symptom of the golf industry with such a short list of significant OEMs is the power they hold. Fortunately, this cuts both ways in Australia, with the ability to focus on a given brand for a promotional period, maintaining some power for the retailer.

An interesting anecdote within the golf industry is the limited amount of rounds people actually play. Lack of rounds played is a serious problem for the industry, but it is a symptom they perpetuate themselves! It is very hard to engage with and excite customers when you aren’t personally experiencing the products you are selling!
So what is happening in Australia to get everyone back into the stores?

In a word, simulators. With the conservative leaders of the business being appropriately tentative around such serious investment for stores, it took a journey to the U.S. and UK to visit other simulator installations to make the decision a very easy one. Witnessing non-golfers participating and loving the simulator experience, it highlighted an opportunity to bring in new customers to the store with completely new revenue streams that hadn’t otherwise been squeezed dry. The time commitment of a session in the simulators is much smaller and more flexible than a full outdoor 18 holes, so the disappearance of golfers who went missing in their late 20s to early 40s suddenly reopened. With a third of the store network having taken up the investment, it appears as though the early signs were correct.

Outside of simulators, it is hard to identify innovation in the way that consumers engage with golf retail and vice versa. Trade in incentives, social media prizes, and the usual promotional cycle of Masters week and Christmas catalogs are still in favor, and from the outside, there doesn’t seem to be the desire to change and innovate. With sales and competitors progressively heading online, the market and engagement with customers are trending more toward digital all the time. While Tiger’s resurgence will absolutely be positive for the industry, I hope there are other things in place to make it sustainable beyond the end of his second dynasty…

What now?

Similar to the US, the market in Australia is shrinking. Fewer rounds are being played each year, and people find it harder to engage with a sport that takes a long time to play, with a comparatively high cost. These things mean that the industry needs to re-engage with the players it still has, on top of getting new ones in a very competitive landscape.

Engagement these days means clicks and follows online, but there has to be a conversion into sales for this to have any meaning at all. I would like to see a more aggressive digital engagement strategy with golfers which encourages them to play — and to do it with new equipment. As it stands, there seems to be an expectation from retailers for suppliers to do the heavy lifting with marketing and engagement, and an expectation from the suppliers that the retailers will automatically benefit from their marketing dollars. With embargos on the biggest and best product launches reducing the ability to have an optimized end to end delivery of a new product to market, the industry lets plenty of opportunities not reach their potential.

On a scale of 2000 Tiger to 2019 Tiger, I would suggest that the industry itself is “stuck in between release patterns” but could be ready to “activate the glutes” into the next season. Momentum is building, and it does feel like the base is much broader and more solid than the last time the industry leaned heavily on Tiger for growth.

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Will Kay is a passionate Australian fan of everything related to golf and equipment, with a particularly unhealthy love of waterproof jackets and outerwear. Previously the lead buyer for a chain of 50 golf stores across Australia, Will is a qualified lawyer and is struggling to maintain a single figure handicap in a double toddler household. He is always planning the next trip to Barnbougle in Tasmania, and doesn’t play enough golf to see any benefit in laying up.

1 Comment

1 Comment

  1. Baldrick Bubble

    May 28, 2019 at 3:08 pm

    Really–does the avg golfer give a rats a$$ about golf equipment sales?
    I mean in all reality–no matter how much you buy, or spend–the average hack is a still a CHOPPER! He wont take the time to watch the improvement videos, work on his game, take the time to ask Q’s to improve or do what it takes. Its pretty pathetic that seeing a guy come back and win is the excitement the masses need to get out there. Maybe OEM’s dont need to release a new driver or iron set every 6-8 months. Maybe you dont need color coordinated shoes, let alone 3 or 4 pair? Remember the days when you couldnt ATTEMPT to buy a game? What goes around comes around!
    The # of golf equipment manufacturers, apparel designers, golf courses–it all needs to SHRINK!
    Tiger was and is a BUBBLE folks!
    Back to the muni you chopper! Goodbye daily fee– hello exclusive CC’s.
    Why all the hand wringing for an inflated industry!?

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19th Hole

Vincenzi’s 2024 Zurich Classic of New Orleans betting preview

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The PGA TOUR heads to New Orleans to play the 2023 Zurich Classic of New Orleans. In a welcome change from the usual stroke play, the Zurich Classic is a team event. On Thursday and Saturday, the teams play best ball, and on Friday and Sunday the teams play alternate shot.

TPC Louisiana is a par 72 that measures 7,425 yards. The course features some short par 4s and plenty of water and bunkers, which makes for a lot of exciting risk/reward scenarios for competitors. Pete Dye designed the course in 2004 specifically for the Zurich Classic, although the event didn’t make its debut until 2007 because of Hurricane Katrina.

Coming off of the Masters and a signature event in consecutive weeks, the field this week is a step down, and understandably so. Many of the world’s top players will be using this time to rest after a busy stretch.

However, there are some interesting teams this season with some stars making surprise appearances in the team event. Some notable teams include Patrick Cantlay and Xander Schauffele, Rory McIlroy and Shane Lowry, Collin Morikawa and Kurt Kitayama, Will Zalatoris and Sahith Theegala as well as a few Canadian teams, Nick Taylor and Adam Hadwin and Taylor Pendrith and Corey Conners.

Past Winners at TPC Louisiana

  • 2023: Riley/Hardy (-30)
  • 2022: Cantlay/Schauffele (-29)
  • 2021: Leishman/Smith (-20)
  • 2019: Palmer/Rahm (-26)
  • 2018: Horschel/Piercy (-22)
  • 2017: Blixt/Smith (-27)

2024 Zurich Classic of New Orleans Picks

Tom Hoge/Maverick McNealy +2500 (DraftKings)

Tom Hoge is coming off of a solid T18 finish at the RBC Heritage and finished T13 at last year’s Zurich Classic alongside Harris English.

This season, Hoge is having one of his best years on Tour in terms of Strokes Gained: Approach. In his last 24 rounds, the only player to top him on the category is Scottie Scheffler. Hoge has been solid on Pete Dye designs, ranking 28th in the field over his past 36 rounds.

McNealy is also having a solid season. He’s finished T6 at the Waste Management Phoenix Open and T9 at the PLAYERS Championship. He recently started working with world renowned swing coach, Butch Harmon, and its seemingly paid dividends in 2024.

Keith Mitchell/Joel Dahmen +4000 (DraftKings)

Keith Mitchell is having a fantastic season, finishing in the top-20 of five of his past seven starts on Tour. Most recently, Mitchell finished T14 at the Valero Texas Open and gained a whopping 6.0 strokes off the tee. He finished 6th at last year’s Zurich Classic.

Joel Dahmen is having a resurgent year and has been dialed in with his irons. He also has a T11 finish at the PLAYERS Championship at TPC Sawgrass which is another Pete Dye track. With Mitchell’s length and Dahmen’s ability to put it close with his short irons, the Mitchell/Dahmen combination will be dangerous this week.

Taylor Moore/Matt NeSmith +6500 (DraftKings)

Taylor Moore has quickly developed into one of the more consistent players on Tour. He’s finished in the top-20 in three of his past four starts, including a very impressive showing at The Masters, finishing T20. He’s also finished T4 at this event in consecutive seasons alongside Matt NeSmith.

NeSmith isn’t having a great 2024, but has seemed to elevate his game in this format. He finished T26 at Pete Dye’s TPC Sawgrass, which gives the 30-year-old something to build off of. NeSmith is also a great putter on Bermudagrass, which could help elevate Moore’s ball striking prowess.

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19th Hole

Vincenzi’s 2024 LIV Adelaide betting preview: Cam Smith ready for big week down under

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After having four of the top twelve players on the leaderboard at The Masters, LIV Golf is set for their fifth event of the season: LIV Adelaide. 

For both LIV fans and golf fans in Australia, LIV Adelaide is one of the most anticipated events of the year. With 35,000 people expected to attend each day of the tournament, the Grange Golf Club will be crawling with fans who are passionate about the sport of golf. The 12th hole, better known as “the watering hole”, is sure to have the rowdiest of the fans cheering after a long day of drinking some Leishman Lager.  

The Grange Golf Club is a par-72 that measures 6,946 yards. The course features minimal resistance, as golfers went extremely low last season. In 2023, Talor Gooch shot consecutive rounds of 62 on Thursday and Friday, giving himself a gigantic cushion heading into championship Sunday. Things got tight for a while, but in the end, the Oklahoma State product was able to hold off The Crushers’ Anirban Lahiri for a three-shot victory. 

The Four Aces won the team competition with the Range Goats finishing second. 

*All Images Courtesy of LIV Golf*

Past Winners at LIV Adelaide

  • 2023: Talor Gooch (-19)

Stat Leaders Through LIV Miami

Green in Regulation

  1. Richard Bland
  2. Jon Rahm
  3. Paul Casey

Fairways Hit

  1. Abraham Ancer
  2. Graeme McDowell
  3. Henrik Stenson

Driving Distance

  1. Bryson DeChambeau
  2. Joaquin Niemann
  3. Dean Burmester

Putting

  1. Cameron Smith
  2. Louis Oosthuizen
  3. Matt Jones

2024 LIV Adelaide Picks

Cameron Smith +1400 (DraftKings)

When I pulled up the odds for LIV Adelaide, I was more than a little surprised to see multiple golfers listed ahead of Cameron Smith on the betting board. A few starts ago, Cam finished runner-up at LIV Hong Kong, which is a golf course that absolutely suits his eye. Augusta National in another course that Smith could roll out of bed and finish in the top-ten at, and he did so two weeks ago at The Masters, finishing T6.

At Augusta, he gained strokes on the field on approach, off the tee (slightly), and of course, around the green and putting. Smith able to get in the mix at a major championship despite coming into the week feeling under the weather tells me that his game is once again rounding into form.

The Grange Golf Club is another course that undoubtedly suits the Australian. Smith is obviously incredibly comfortable playing in front of the Aussie faithful and has won three Australian PGA Championship’s. The course is very short and will allow Smith to play conservative off the tee, mitigating his most glaring weakness. With birdies available all over the golf course, there’s a chance the event turns into a putting contest, and there’s no one on the planet I’d rather have in one of those than Cam Smith.

Louis Oosthuizen +2200 (DraftKings)

Louis Oosthuizen has simply been one of the best players on LIV in the 2024 seas0n. The South African has finished in the top-10 on the LIV leaderboard in three of his five starts, with his best coming in Jeddah, where he finished T2. Perhaps more impressively, Oosthuizen finished T7 at LIV Miami, which took place at Doral’s “Blue Monster”, an absolutely massive golf course. Given that Louis is on the shorter side in terms of distance off the tee, his ability to play well in Miami shows how dialed he is with the irons this season.

In addition to the LIV finishes, Oosthuizen won back-to-back starts on the DP World Tour in December at the Alfred Dunhill Championship and the Mauritus Open. He also finished runner-up at the end of February in the International Series Oman. The 41-year-old has been one of the most consistent performers of 2024, regardless of tour.

For the season, Louis ranks 4th on LIV in birdies made, T9 in fairways hit and first in putting. He ranks 32nd in driving distance, but that won’t be an issue at this short course. Last season, he finished T11 at the event, but was in decent position going into the final round but fell back after shooting 70 while the rest of the field went low. This season, Oosthuizen comes into the event in peak form, and the course should be a perfect fit for his smooth swing and hot putter this week.

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Opinion & Analysis

The Wedge Guy: What really makes a wedge work? Part 1

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Of all the clubs in our bags, wedges are almost always the simplest in construction and, therefore, the easiest to analyze what might make one work differently from another if you know what to look for.

Wedges are a lot less mysterious than drivers, of course, as the major brands are working with a lot of “pixie dust” inside these modern marvels. That’s carrying over more to irons now, with so many new models featuring internal multi-material technologies, and almost all of them having a “badge” or insert in the back to allow more complex graphics while hiding the actual distribution of mass.

But when it comes to wedges, most on the market today are still single pieces of molded steel, either cast or forged into that shape. So, if you look closely at where the mass is distributed, it’s pretty clear how that wedge is going to perform.

To start, because of their wider soles, the majority of the mass of almost any wedge is along the bottom third of the clubhead. So, the best wedge shots are always those hit between the 2nd and 5th grooves so that more mass is directly behind that impact. Elite tour professionals practice incessantly to learn to do that consistently, wearing out a spot about the size of a penny right there. If impact moves higher than that, the face is dramatically thinner, so smash factor is compromised significantly, which reduces the overall distance the ball will fly.

Every one of us, tour players included, knows that maddening shot that we feel a bit high on the face and it doesn’t go anywhere, it’s not your fault.

If your wedges show a wear pattern the size of a silver dollar, and centered above the 3rd or 4th groove, you are not getting anywhere near the same performance from shot to shot. Robot testing proves impact even two to three grooves higher in the face can cause distance loss of up to 35 to 55 feet with modern ‘tour design’ wedges.

In addition, as impact moves above the center of mass, the golf club principle of gear effect causes the ball to fly higher with less spin. Think of modern drivers for a minute. The “holy grail” of driving is high launch and low spin, and the driver engineers are pulling out all stops to get the mass as low in the clubhead as possible to optimize this combination.

Where is all the mass in your wedges? Low. So, disregarding the higher lofts, wedges “want” to launch the ball high with low spin – exactly the opposite of what good wedge play requires penetrating ball flight with high spin.

While almost all major brand wedges have begun putting a tiny bit more thickness in the top portion of the clubhead, conventional and modern ‘tour design’ wedges perform pretty much like they always have. Elite players learn to hit those crisp, spinny penetrating wedge shots by spending lots of practice time learning to consistently make contact low in the face.

So, what about grooves and face texture?

Grooves on any club can only do so much, and no one has any material advantage here. The USGA tightly defines what we manufacturers can do with grooves and face texture, and modern manufacturing techniques allow all of us to push those limits ever closer. And we all do. End of story.

Then there’s the topic of bounce and grinds, the most complex and confusing part of the wedge formula. Many top brands offer a complex array of sole configurations, all of them admittedly specialized to a particular kind of lie or turf conditions, and/or a particular divot pattern.

But if you don’t play the same turf all the time, and make the same size divot on every swing, how would you ever figure this out?

The only way is to take any wedge you are considering and play it a few rounds, hitting all the shots you face and observing the results. There’s simply no other way.

So, hopefully this will inspire a lively conversation in our comments section, and I’ll chime in to answer any questions you might have.

And next week, I’ll dive into the rest of the wedge formula. Yes, shafts, grips and specifications are essential, too.

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