The Business of The PGA Show
Every Monday, I write a newsletter breaking down the business in golf. Welcome to the 48 new Perfect Putt members who have joined us since the last newsletter. Join 8,528 intelligent and curious golfers by subscribing below.
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Hey Golfers —
Gary Adams ventured to the PGA Show in 1979 with an innovative design — a stainless steel driver. The product was a hit in Orlando — Mr. Adams wrote up $47,000 in orders during the week.
He returned to his Illinois home and immediately visited a bank to take out a $24,000 loan.
And TaylorMade was born in a 6,000-square-foot factory in McHenry, Illinois. Over 40 years later — TaylorMade was sold to a South Korean private equity firm for a reported $1.7 billion.
The PGA Show played an integral role in the TaylorMade journey. And while we conduct business differently than in 1979 — the PGA Show offers the most unique business environment in golf.
Over 7,000 PGA of America Professionals attended the PGA show last week in Orlando — 23% of the PGA Professionals in America attended.
Here are some quick stats on the show:
Over 1,000 companies attended or exhibited
1.1 million square feet of exhibit, demonstration, and meeting space
Over 30,000 golf industry professionals from 84 countries and all 50 states attended the PGA show.
After attending the show for a couple of days — I had two main takeaways from a business standpoint. And they follow the trends we have seen in golf over the last few years.
Off-course golf
Women’s Apparel
Off-course golf has been growing rapidly for the industry — growing 68% from 2018 to 2022. And it ranks as a top ten recreational sport in America regarding participation. Entrepreneurs continue to build, and investors continue to invest capital.
The booths at golf simulator companies were buzzing with energy. PGA Professionals are looking to add simulators to their golf courses to add value to their members.
And while anecdotal — I chatted with a PGA Professional at a municipal golf course in rural Iowa. He is evaluating the addition of several Toptracer bays to their driving range and an indoor simulator. This is rural Iowa — what are golf courses doing in large metro areas?
Golf simulator company TruGolf listed the ticker symbol TRUG on its booth after its recent announcement that it intends to go public in a SPAC deal with Deep Medicine Acquisition Corp. The deal values TruGolf at $80 million and is expected to close by the end of the month.
It is estimated that 6.2 million Americans hit golf balls in a simulator last year — a 73% spike since 2019. One CEO told me they had 2 million unique golfers in 2023 — commanding a 30% market share in the industry. And they expect to see the market continue to grow.
The general thought is the technology has been solved in the golf simulator space. We will continue to see technological improvements — but there are laws of diminishing returns. The company that can add value in non-traditional ways — such as back-end technology value to its customers will win.
Women’s apparel is an area that has yet to be solved. And it represents a massive opportunity.
Since 2019 — female golfers have represented a net gain of 800,000 new golfers.
25% of on-course golfers are females
41% of beginner golfers are females
Male athleisure company Rhone announced they were named the official on-course apparel partner of the LPGA Tour and Epson Tour. And they will be launching their women’s collection in May.
Apparel brands rolling out women’s lines seemed endless at the PGA show this year. And while I didn’t make it to every booth — nothing jumped out to me as different from what is currently in the marketplace.
The golf apparel market is an interesting and enormous market.
Men’s apparel is generally over-saturated. To succeed, you need a product and strategy different from those of established brands.
Women’s apparel is under-served and lacks variety. It almost seems as if legacy companies see a revenue opportunity (as they should) but lack strategy and execution.
Whoever can win the women’s apparel golf market will have major success, and the opportunity is wide open.
One thing that excited me about the PGA Show was the amount of young entrepreneurs entering the space. I chatted with a 23-year-old with ten employees — his passion for the industry was unmatched in all my conversations.
Everyone will have differing opinions on the PGA Show — most of the PGA Professionals I spoke with were happy with it. And more importantly are excited about 2024 as the industry continues its growth.
Have yourself a great Monday. Talk to you next week!
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Amazing recap, thank you!
I’d be curious to hear more of your thinking on backend tech value for customers re: off-course golf.
Maybe something like a CRM & messaging, booking / scheduling features, and things that help simulator businesses make money? Or did I totally whiff?
Thanks again, Jared - big fan of your writing.