Opinion & Analysis

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

Published

5 years ago

May 28, 2019

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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19th Hole

Vincenzi’s LIV Golf Singapore betting preview: Course specialist ready to thrive once again

Published

3 days ago

Apr 30, 2024

Matt Vincenzi

After another strong showing in Australia, LIV Golf will head to Sentosa Golf Club in Singapore looking to build off of what was undoubtedly their best event to date.

Sentosa Golf Club sits on the southern tip of Singapore and is one of the most beautiful courses in the world. The course is more than just incredible scenically; it was also rated 55th in Golf Digest’s top-100 courses in 2022-2023 and has been consistently regarded as one of the best courses in Asia. Prior to being part of the LIV rotation, the course hosted the Singapore Open every year since 2005.

Sentosa Golf Club is a par 71 measuring 7,406 yards. The course will require precise ball striking and some length off the tee. It’s possible to go low due to the pristine conditions, but there are also plenty of hazards and difficult spots on the course that can bring double bogey into play in a hurry. The Bermudagrass greens are perfectly manicured, and the course has spent millions on the sub-air system to keep the greens rolling fast. I spoke to Asian Tour player, Travis Smyth, who described the greens as “the best [he’s] ever played.”

Davis Love III, who competed in a Singapore Open in 2019, also gushed over the condition of the golf course.

“I love the greens. They are fabulous,” the 21-time PGA Tour winner said.

Love III also spoke about other aspects of the golf course.

“The greens are great; the fairways are perfect. It is a wonderful course, and it’s tricky off the tee.”

“It’s a long golf course, and you get some long iron shots. It takes somebody hitting it great to hit every green even though they are big.”

As Love III said, the course can be difficult off the tee due to the length of the course and the trouble looming around every corner. It will take a terrific ball striking week to win at Sentosa Golf Club.

In his pre-tournament press conference last season, Phil Mickelson echoed many of the same sentiments.

“To play Sentosa effectively, you’re going to have a lot of shots from 160 to 210, a lot of full 6-, 7-, 8-iron shots, and you need to hit those really well and you need to drive the ball well.”

Golfers who excel from tee to green and can dial in their longer irons will have a massive advantage this week.

Stat Leaders at LIV Golf Adelaide:

Fairways Hit

1.) Louis Oosthuizen

2.) Anirban Lahiri

3.) Jon Rahm

4.) Brendan Steele

5.) Cameron Tringale

Greens in Regulation

1.) Brooks Koepka

2.) Brendan Steele

3.) Dean Burmester

4.) Cameron Tringale

5.) Anirban Lahiri

Birdies Made

1.) Brendan Steele

2.) Dean Burmester

3.) Thomas Pieters

4.) Patrick Reed

5.) Carlos Ortiz

LIV Golf Individual Standings:

1.) Joaquin Niemann

2.) Jon Rahm

3.) Dean Burmester

4.) Louis Oosthuizen

5.) Abraham Ancer

LIV Golf Team Standings:

1.) Crushers

2.) Legion XIII

3.) Torque

4.) Stinger GC

5.) Ripper GC

LIV Golf Singapore Picks

Sergio Garcia +3000 (DraftKings)

Sergio Garcia is no stranger to Sentosa Golf Club. The Spaniard won the Singapore Open in 2018 by five strokes and lost in a playoff at LIV Singapore last year to scorching hot Talor Gooch. Looking at the course setup, it’s no surprise that a player like Sergio has played incredible golf here. He’s long off the tee and is one of the better long iron players in the world when he’s in form. Garcia is also statistically a much better putter on Bermudagrass than he is on other putting surfaces. He’s putt extremely well on Sentosa’s incredibly pure green complexes.

This season, Garcia has two runner-up finishes, both of them being playoff losses. Both El Camaleon and Doral are courses he’s had success at in his career. The Spaniard is a player who plays well at his tracks, and Sentosa is one of them. I believe Sergio will get himself in the mix this week. Hopefully the third time is a charm in Singapore.

Paul Casey +3300 (FanDuel)

Paul Casey is in the midst of one of his best seasons in the five years or so. The results recently have been up and down, but he’s shown that when he’s on a golf course that suits his game, he’s amongst the contenders.

This season, Casey has finishes of T5 (LIV Las Vegas), T2 (LIV Hong Kong), and a 6th at the Singapore Classic on the DP World Tour. At his best, the Englishman is one of the best long iron players in the world, which makes him a strong fit for Sentosa. Despite being in poor form last season, he was able to fire a Sunday 63, which shows he can low here at the course.

It’s been three years since Casey has won a tournament (Omega Dubai Desert Classic in 2021), but he’s been one of the top players on LIV this season and I think he can get it done at some point this season.

Mito Pereira +5000 (Bet365)

Since Mito Pereira’s unfortunate demise at the 2022 PGA Championship, he’s been extremely inconsistent. However, over the past few months, the Chilean has played well on the International Series as well as his most recent LIV start. Mito finished 8th at LIV Adelaide, which was his best LIV finish this season.

Last year, Pereira finished 5th at LIV Singapore, shooting fantastic rounds of 67-66-66. It makes sense why Mito would like Sentosa, as preeminent ball strikers tend to rise to the challenge of the golf course. He’s a great long iron player who is long and straight off the tee.

Mito has some experience playing in Asia and is one of the most talented players on LIV who’s yet to get in the winner’s circle. I have questions about whether or not he can come through once in contention, but if he gets there, I’m happy to roll the dice.

Andy Ogletree +15000 (DraftKings)

Andy Ogletree is a player I expected to have a strong 2024 but struggled early in his first full season on LIV. After failing to crack the top-25 in any LIV event this year, the former U.S. Amateur champion finally figured things out, finished in a tie for 3rd at LIV Adelaide.

Ogletree should be incredible comfortable playing in Singapore. He won the International Series Qatar last year and finished T3 at the International Series Singapore. The 26-year-old was arguably the best player on the Asian Tour in 2023 and has been fantastic in the continent over the past 18 months.

If Ogletree has indeed found form, he looks to be an amazing value at triple-digit odds.

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Opinion & Analysis

Ryan: Lessons from the worst golf instructor in America

Published

3 days ago

Apr 30, 2024

Brendan Ryan

In Tampa, there is a golf course that boasts carts that do not work, a water range, and a group of players none of which have any chance to break 80. The course is overseen by a staff of crusty men who have succeeded at nothing in life but ending up at the worst-run course in America. However, this place is no failure. With several other local courses going out of business — and boasting outstanding greens — the place is booked full.

While I came for the great greens, I stayed to watch our resident instructor; a poor-tempered, method teacher who caters to the hopeless. At first, it was simply hilarious. However, after months of listening and watching, something clicked. I realized I had a front-row seat to the worst golf instructor in America.

Here are some of my key takeaways.

Method Teacher

It is widely accepted that there are three types of golf instructors: system teachers, non-system teachers, and method teachers. Method teachers prescribe the same antidote for each student based on a preamble which teachers can learn in a couple day certification.

Method teaching allows anyone to be certified. This process caters to the lowest caliber instructor, creating the illusion of competency. This empowers these underqualified instructors with the moniker of “certified” to prey on the innocent and uninformed.

The Cult of Stack and Jilt

The Stack and Tilt website proudly boasts, “A golfer swings his hands inward in the backswing as opposed to straight back to 1) create power, similar to a field goal kicker moving his leg in an arc and 2) to promote a swing that is in-to-out, which produces a draw (and eliminates a slice).”

Now, let me tell you something, there is this law of the universe which says “energy can either be created or destroyed,” so either these guys are defying physics or they have no idea what they are taking about. Further, the idea that the first move of the backswing determines impact is conjecture with a splash of utter fantasy.

These are the pontifications of a method — a set of prescriptions applied to everyone with the hope of some success through the placebo effect. It is one thing for a naive student to believe, for a golf instructor to drink and then dispel this Kool-Aid is malpractice.

Fooled by Randomness

In flipping a coin, or even a March Madness bet, there is a 50-50 chance of success. In golf, especially for new players, results are asymmetric. Simply put: Anything can happen. The problem is that when bad instructors work with high handicappers, each and every shot gets its own diagnosis and prescription. Soon the student is overwhelmed.

Now here’s the sinister thing: The overwhelming information is by design. In this case, the coach is not trying to make you better, they are trying to make you reliant on them for information. A quasi Stockholm syndrome of codependency.

Practice

One of the most important scientists of the 20th century was Ivan Pavlov. As you might recall, he found that animals, including humans, could be conditioned into biological responses. In golf, the idea of practice has made millions of hackers salivate that they are one lesson or practice session from “the secret.”

Sunk Cost

The idea for the worst golf instructor is to create control and dependency so that clients ignore the sunk cost of not getting better. Instead, they are held hostage by the idea that they are one lesson or tip away from unlocking their potential.

Cliches

Cliches have the effect of terminating thoughts. However, they are the weapon of choice for this instructor. Add some hyperbole and students actually get no information. As a result, these players couldn’t play golf. When they did, they had no real scheme. With no idea what they are doing, they would descend into a spiral of no idea what to do, bad results, lower confidence, and running back to the lesson tee from more cliches.

The fact is that poor instruction is about conditioning players to become reliant members of your cult. To take away autonomy. To use practice as a form of control. To sell more golf lessons not by making people better but through the guise that without the teacher, the student can never reach their full potential. All under the umbrella of being “certified” (in a 2-day course!) and a melee of cliches.

This of course is not just happening at my muni but is a systemic problem around the country and around the world, the consequences of which are giving people a great reason to stop playing golf. But hey, at least it’s selling a lot of golf balls…

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19th Hole

Vincenzi’s 2024 Zurich Classic of New Orleans betting preview

Published

2 weeks ago

Apr 22, 2024

Matt Vincenzi

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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