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Golf industry struggling, Nike pulls out, Adidas looking for a buyer
It has been a trend for many years now for golf courses around the world to close and for golf estates, like Blair Atholl, to run into financial problems. Golf is an extremely expensive sport and there is no doubt that far too many golf courses, golf estates and all things golf have been established.
In recent months we have seen Nike give up making clubs – so, even the players under sponsorship, such as Rory MciIroy and Tiger Woods, will no longer have any new Nike clubs to play with Nike pulling out of the business. Adidas owns the Taylormade made brand and they have put that up for sale and most recently, pictured in the photograph alongside this article, Golfsmith, a large range of golf retail shops in the United States, has also gone bankrupt. There seems to be no end of trouble for the golf industry and there is a long way still to go, in terms of rationalisation and losses, etc before one gets to a healthier position where only financially stable businesses and golf courses remain open. The number of golf courses is reducing; the number of golf club manufacturers is reducing and we now also see retail golf shops going under. Obviously, it is still a major international sport, but the over-capacity in the industry has been getting slowly eliminated over the last few years and it is almost as if that is now in its final stages.
Posted by Michael de Broglio on Friday 09-Dec-16
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Comments
Nicolle said:
on Thursday 15-Dec-16 08:53 AM
Perhaps people are slowly coming to the realisation that chasing a little white ball is pointless?
Nikita said:
on Wednesday 14-Dec-16 08:49 AM
My sister is a junior buyer for the South African Nike Golf stores and the decision to stop manufacturing clubs was a long time coming. Their biggest seller is the apparel and it seems they are actually growing in the number of stores they have.
Brenda van den Bergh said:
on Tuesday 13-Dec-16 09:56 AM
It just seems that the economy is getting worse and worse and when you read news like this, for sport as big as golf, it becomes worrying as to where the world is going. Yes admittedly golf is a very expensive sport, but to see it starting to go under does cause for some concern. I played a few rounds of golf a few years ago, and I must say I quite enjoyed it, but then again, it is not for everyone as it does require great skill and accuracy. I really do hope that this is just a temporary phase and that it does pick up again in the near future.
Nicky said:
on Monday 12-Dec-16 02:51 PM
I would have thought that golf is a thriving sport.
Does this then mean that golf is now dying out or is it just a phase and sales will eventually increase later on?
Cornelie said:
on Monday 12-Dec-16 12:12 PM
Golf is not every man's game. And I have always wondered how they make money because we all need to work and these days are way different then back in the day where you can quickly go and play golf.
Dune said:
on Friday 09-Dec-16 02:18 PM
I have to be honest and admit that I have never been a fan of golf, I never tend to stay awake when it on television. The closest I have ever been to golf is when we went to a driving range, I enjoyed that especially if you have some frustration to get rid of.
Sinead said:
on Friday 09-Dec-16 12:50 PM
I'm very surprised to hear that Nike is pulling out. Their gear was always the best - in my opinion. Even Taylormade is one of the best so it's really strange. I do wonder why they would pull out though.
Daniella said:
on Friday 09-Dec-16 11:48 AM
Golf is such an expensive sport, I am quite surprised that Nike is pulling purely based on the fact that the sport of golf has finally received a huge boost in exposure by featuring in the 2016 Rio Games, making its return to the Olympics. So its quite odd.
Thabitha said:
on Friday 09-Dec-16 11:28 AM
I can understand golf is an expensive hobby and not too many people are golfers and because everything is luxuries, Nike pulling out that shows how expensive golf is.
Michelle said:
on Friday 09-Dec-16 10:49 AM
I agree with everyone that this is not a very cheap sport to play. But if you are lucky enough to become a professional you will most certainly be a very wealthy person. I think as a professional it can really be disappointing if you lose suck a well-known sponsor. I'm just glad I don't have to watch it, because I do not find it fascinating at all.
Mathilda said:
on Friday 09-Dec-16 10:44 AM
I was forced to like golf as my Boyfriend plays lol, for me its a very boring game but I like to watch other people play.
It is surprising that Nike is pulling out as that was one of golfs biggest sponsors, but I must admit their clothes are so expensive I mean a Callaway Hat is almost R600.00
Angelique P said:
on Friday 09-Dec-16 10:44 AM
I know Nike where a big sponsor to the golf industry.
It's very strange that they are pulling out. Golf is very expensive sport I mean even the clothes are prices at ridicules prices.
I dont like to watch golf on television I will rather go with when they are playing. You are not just hitting a ball, you must take the wind in consideration and with what iron you are going to hit and how far you must hit the ball ect. It really takes lot of practice to hit a perfect ball.
Ashleigh said:
on Friday 09-Dec-16 10:35 AM
Golf is for the rich and famous I say. :) You have to be really financially well off in order to play this sport hence why its always great for business deals. This is a sport where a lot of sales people get their clients to sign big deals.
Melissa said:
on Friday 09-Dec-16 10:17 AM
Shocking news, golf is really a expensive sport to play and not everyone can play it
Brenda Du Toit said:
on Friday 09-Dec-16 10:07 AM
I am quite surprised to hear this.Golf is a expensive sport to play. I've always remembered golf being big and business man always like to bond to play golf together.
Lucretia said:
on Friday 09-Dec-16 09:33 AM
Why is this....is gold becoming a dying industry or, is it because it is so costly to play that it is out of reach of the majority hence the industry is putting itself out of business. If you only cater for the select few and they don't all take up the offer, you will fail. If you cater for all, it will be the little man on the street that might carry your business through. I love playing golf but, with the rising costs of not only the annual fees but also the costs on the day, it has been a luxury I have had to put aside because there are other more important things that I have to attend too.
Joyce said:
on Friday 09-Dec-16 09:27 AM
It sounds like Golf industry is really struggling and sounds like all their supporting parties are not coping and leaving the industry
Angelique Jurgens said:
on Friday 09-Dec-16 09:25 AM
When times get tough, people buckle up - it's no surprise that golf would take the plunge as it is quite an expensive sport to part-take in. The economy as a whole would definitely need to stabilise before this makes a come back. It's sometimes seen as a retirement luxury - perhaps more people aren't able to retire early and slaving away working because they didn't make provision for their retirement. A bit dramatic? Anyway, if Nike is pulling out then there is definitely a big problem. Needless to say, I don't think it would completely just disappear altogether.
Sarah said:
on Friday 09-Dec-16 09:23 AM
I have tried playing golf but it is not for me, I had more fun driving the golf car around. I am very shock to hear this and golf is very expensive sport, Golf is a sport you can entertain clients or just get out the house to relax.
Juliet said:
on Friday 09-Dec-16 09:20 AM
I didn't know the golf industry was in such dire straits. It is such a popular sport but I guess with it being so expensive and so elite, if there is an overabundance of supply, then there will always be a re-balancing in order to keep things stable.
patrick said:
on Friday 09-Dec-16 09:20 AM
times are hard, a lot of people are trying to cut on things that they can do without, with Golf being an expensive sport, am sure that's the main reason why they have been hurt most.
Zindy said:
on Friday 09-Dec-16 09:14 AM
I can only imagine what the up keep costs on a Golf course and without support it could be very difficult to maintain and run. Golf is an expensive hobby so people cant afford to buy decent golf sets and belong to a club anymore.
Jessica M said:
on Friday 09-Dec-16 09:11 AM
I feel sorry for the people that have made a career out of this sport now. It is heavy expensive to mantain and it really does need more supports to keep it going.
Tamaryn M said:
on Friday 09-Dec-16 09:11 AM
It's always important to look at what the market leaders and big role players are doing in an industry. If Nike is pulling out it's a sign of things to come. They pay lots of money to their advisors who are basically paid to research the industry and decide whether investing will be worth while. I would say, as unfortunate as it is, that the others would be wise to follow what the leaders in the industry seem to have already ascertained.
Clare said:
on Friday 09-Dec-16 09:09 AM
Golf is a expensive sport to play, I am extremely surprised to hear about this this. I am not one that plays Golf but I do know a lot of people love the Game/ Sport. I do agree with Lourien "A smaller profit is still better than no profit at all."
Zanell said:
on Friday 09-Dec-16 09:06 AM
I never knew the golf industry was doing this bad, I would never have expected this, I've always remembered golf being big. It is a very expensive sport, I mean even to play a game is so expensive.
Henrietta said:
on Friday 09-Dec-16 08:47 AM
I agree golf is an extremely expensive sport and mostly it's arranged between businessmen to discuss deals etc. and to bond. Its not a sport that I like to play nor watch but from what I heard by my brother in laws it quite relaxing and a stress reliever to them. And I believe if you a very serious about this sport you have to have the correct gears and this is also quite expensive.
Melissa P said:
on Friday 09-Dec-16 08:44 AM
I've only hit a couple of balls on the driving range with my Fiance and I realised then what an expensive hobby it is a sa broke one of his clubs and he wasn't happy with me at all. Needles to say I never did it again. It's suppose to be relaxing but it was more frustrating than anything else. Peple are struggeling to get by these days and can't afford the luxuries of playing gholf anymore.
Nina said:
on Friday 09-Dec-16 08:44 AM
I am quite surprised to hear this seeing that golf is such a popular sport. But it is definetely very expensive and not a sport for everyone.
Bianca said:
on Friday 09-Dec-16 08:42 AM
I am extremely surprised to hear about this, golf is a sport that has been around for many years and it would be extremely sad to see it fading away. I do however believe that because it is such an expensive sport, people are finding it extremely difficult to continue due to financial times. A sport is generally a luxury and cannot be sustained when you are in a financial hardship so I am pretty sure that is what is happening.
tamzyn said:
on Friday 09-Dec-16 08:41 AM
I am vert suprised that Nike would pull out of a popular internation sport like Golf. I suppose like Charlotte says, it is an expensive sport and luxuries are the first to go.
Anna said:
on Friday 09-Dec-16 08:40 AM
I'm a tennis fan! Far more energetic and face paced than golf. I'm certain they both require similar levels of skill but I find it very difficult to watch a game of golf on television or live.
Natasha said:
on Friday 09-Dec-16 08:37 AM
Golf is a very expensive sport always been and as far as I know is it always companies that arrange golf days so it must be an expensive sport imagen your a corporate company and you host a rugby day..... don't think that is appropriate so if you want to be fancy and play an expensive sport then you have to take out the money to pay for the equipment
Kaylee said:
on Friday 09-Dec-16 08:36 AM
It's strange to me, I always thought golf was a popular sport. It is a super expensive sport though and I guess only the elite few can actually afford to play the sport!
charlotte said:
on Friday 09-Dec-16 08:32 AM
Golf has always been an expensive sport to play. I remember when my husband got his first set of golf clubs, it already cost a fortune. I am not surprised that some golf shops are going out of business, not many people can afford this luxury anymore.
Prishani said:
on Friday 09-Dec-16 08:30 AM
For those who are keen on the sport I am sure that this is something that they saw coming. I am actually quite surprised, considering that golf is still a fairly popular international sport, I don't understand why a brand like Nike would pull out of sponsoring an elite sport like this!
Jessica Apfel said:
on Friday 09-Dec-16 08:26 AM
Golf is an expensive hobby and perhaps with the rise in living expenses peolple have had to cut back on luxuries. Having only hit a few balls at the driving range, I cannot comment on the cost of the sport but the driving range remains full - perhaps it is a more accesible and cheaper way to still enoy the sport?
Lourien said:
on Friday 09-Dec-16 08:25 AM
My opinion is that golf is a business sport, where you discuss a few deals and head home early... and some people enjoy playing golf to relax and get out of the house, but today it is a really expensive sport to play especially for someone that is only starting to play golf and still needs to buy everything from scratch. I am sure that all these high prices can be reduced making a slightly smaller profit but still more than enough to keep these stores open. A smaller profit is still better than no profit at all.
Alexis said:
on Friday 09-Dec-16 08:21 AM
I am quite surprised to hear this....I suppose maybe it was just a fad and will come back into play again sometime as everything does. I can imagine it is a very expensive hobby - the clubs, the balls....etc
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
