GBR Weekly | Topgolf Callaway To Split, LIV Golf Goes Head-To-Head With the PGA Tour
We also uncover the latest updates from TMRW Sports on the January launch of the TGL golf league and Cabot Collection's latest strategic investment.
Good morning, GBR community,
We’re back with the latest key updates from the world of golf, neatly packaged for you to enjoy during your next coffee break.
Here’s what’s on tap in this week’s edition:
Topgolf and Callaway will part ways: Following last week’s announcement, we provide a full breakdown of the split’s details and the next steps.
TGL is progressing nicely: After being delayed by a year, the latest news from TMRW Sports indicates good progress ahead of January’s debut.
LIV Golf’s 2025 Schedule: LIV Golf has announced the dates and venues of the first four tournaments of 2025. We look at some interesting clashes with the PGA Tour scheduling.
Cabot Collection’s Lofoten Links investment: the luxury golf and experience company adds to its European portfolio with a strategic investment into Lofoton Links.
PXG’s new golf balls: PXG updates the XTreme Tour and adds a new model with the XTreme Tour X.
Sneek peek at Srixon’s 2025 offerings: Srixon provides its playing staff prototypes of the updated ZX7 and ZX5 irons.
Wallace wins again: Matt Wallace ends a six-year drought to capture his fifth DP World Tour title in Switzerland.
Reading material: additional interesting reading recommendations for you to catch up with once you have finished reading GBR!
Topgolf And Callaway Split
Topgolf and Callaway are set to go their separate ways in a move that will surprise many.
Only last month, Chip Brewer, the CEO of Topgolf Callaway, announced that a strategic review of the business model had begun. Pressed to provide a timeline of how long the review would take and when the outcome would be made public, Brewer answered that the review would be concluded “expeditiously.”
Brewer has been true to his word in that regard. The review was announced just under a month ago.
The details of the split were announced in a press release last Wednesday (4th September) and confirm the following:
Topgolf, which merged with Callaway in 2021 after an initial investment in 2016, will be spun off with a clean slate and free of any debt.
Approximately $200 million cash will be available for Topgolf post-split.
The separation will see at least 80.1% of Topgolf spun off for tax purposes.
Callaway will potentially retain a minority stake.
An additional four advantages have been listed as a result of the impending breakup, which are:
Enhanced strategic focus - Callaway and Topgolf are strong brands in their own rights, with attention being directed to growing the brands separately.
Improved Capital Allocation - each brand has its own capital and cash flow requirements.
Improved Operating Structure - streamlining across both organizations will enhance agility.
Positive Investment Outlook - Callaway and Topgolf each have their own unique brand proposition, presenting different investment opportunities and simplified reporting structures.
The Next Steps
Now, the work begins in the background to create a separation plan for Callaway and Topgolf.
What’s interesting about the press release is that although the assumption is the spin-off of Topgolf at present, other separation options will be explored in the interim to ensure the best shareholder value.
If the separation plans aren’t changed and run to target, expect to see the separation completed by 1st July 2025.
Post-spinoff, Callaway will focus on its core businesses, including golf equipment and active lifestyle segments, alongside the Toptracer ball-tracking technology. These units collectively generated $2.5 billion in revenue over the past year.
Meanwhile, Topgolf’s expansive network of over 100 venues contributed $1.8 billion during the same period. Topgolf’s problems are related to its same-venue operations, with growth being driven by new venues opening. The outlook suggests that while Topgolf will continue to grow to the tune of a “mid-single-digit figure range” in 2025, a significant focus will be on making the same-venue sites more profitable.
Callaway and Topgolf are likely to continue some level of strategic partnership after the spin-off, such as Callaway equipment being the exclusive equipment partner at Topgolf venues.
In summary, this looks like an amicable separation, where good relations and not a messy divorce would likely cause damage to both brands moving forward.
“Since our merger with Topgolf, we have made considerable investments in the Topgolf business that have dramatically expanded its scale, digital capabilities and venue profitability. These investments, combined with the hard work of the Topgolf team, have allowed us to outperform our original growth and free cash flow expectations.”
“Looking forward, we remain convinced that Topgolf is a high-quality, free cash flow generating business with a significant future value creation opportunity. Topgolf is transforming the game of golf and is expected to deliver substantial financial returns over time. At the same time, Topgolf has a different operating model, capital structure, and investment thesis than Callaway, and as a result, the Board has determined that separating Topgolf will best position Topgolf and Callaway for success and maximize shareholder value.” - Chip Brewer, President and CEO, Topgolf Callaway Brands.
Full Steam Ahead For TGL
Josh Carpenter, writing in Sports Business Journal, provided an update on the ongoing progress being made on the long-awaited debut of the TGL golf league backed by TMRW Sports.
Initially slated for a January 2024 launch, the league’s start was delayed by a year due to unforeseen damage to its original venue in Palm Beach Gardens, Florida. However, with the Presidents Cup set to conclude at Royal Montreal on September 29, the countdown to TGL’s January 7th launch will be exactly 100 days.
The SoFi Center, an advanced venue currently under construction, is key to the league’s success. The facility, which will feature a 53-foot-high screen and a rotating green complex as large as an NBA court, is expected to be mostly operational by October.
This cutting-edge environment will be tested by ESPN’s broadcast team in November. However, whether the network will employ a traditional analyst format or rely on miked-up players to provide commentary remains unclear.
TGL’s schedule, expected to be released this fall, will feature matches on Monday and Tuesday nights, running through the week before the Masters. This prime-time slot is designed to capture the attention of golf enthusiasts and casual viewers, bringing the game to life in a dynamic new format.
So far, the league has secured Genesis and Businessolver as founding partners, with an additional three to five partnerships anticipated. These collaborations are expected to enhance the league’s appeal and offer unique experiences for fans and players alike.
“We’ve got the right team in place now and to me, that was the biggest challenge,” McCarley said. “You put the right people together in the right environment with the right vision, and good things seem to follow.” - Mike McCarley, co-founder of TMRW Sports.
Cleek Joins TMRW From PGA Tour
Additional news coming from TMRW Sports was the announcement that Brian Cleek would be joining the senior leadership team, having worked as Vice President of Business Development in the Corporate Partnerships department of the PGA Tour, focusing on new title sponsorships and official marketing partnerships for the past seven years.
TMRW Sports hasn’t revealed precisely what Cleek’s role will be, but as mentioned above, the fledgling league has room for more partnerships, and Cleek’s experience can be vital in landing those deals.
Cleek’s resume includes stints at the PGA of America, Roush Fenway Racing, New York Giants, and the NFL, as well as his most recent role within the PGA Tour.
“As we continue to build the sponsorship and corporate partnership team, we couldn’t be more excited to have Brian join TMRW Sports and TGL presented by SoFi as Senior Vice President, Business Development. Brian brings a proven track record of creating explosive growth for the largest governing bodies in golf and sports.” - Jason Langwell, Chief Revenue Officer, TMRW Sports.
LIV Golf Announces First Four Tournaments Of 2025 Schedule
The ongoing saga between the PGA Tour and LIV Golf, which has now stretched over two and a half years, shows no signs of resolution as both tours march forward into 2025.
The latest installment of the standoff traces its routes back to when PGA Tour Commissioner Jay Monahan unveiled the 2025 PGA Tour schedule before the FedEx St. Jude Championship in August.
The schedule featured 39 tournaments, with no hint of collaboration or merger with LIV Golf. Monahan simply agreed when asked about the possibility of a deal, saying, “I think that’s fair.”
In a move that mirrored Monahan’s announcement, LIV Golf revealed its own schedule for the start of its “third official full season,” signaling that it is also pushing forward independently.
The season will kick off with LIV Golf Riyadh on 6th February at Riyadh Golf Club, followed by tournaments in Australia, Hong Kong, and Singapore throughout February and March.
LIV Golf Riyadh, Riyadh Golf Club, February 6th-8th.
LIV Golf Adelaide, The Grange Golf Club, February 14th-16th.
LIV Golf Hong Kong, Hong Kong Golf Club, March 7th-9th.
LIV Golf Singapore, Sentosa Golf Club, March 14th-16th.
Notably, LIV CEO Greg Norman’s statement did not mention a potential merger with the PGA Tour. Instead, it expressed confidence about LIV’s future.
The scheduling of the LIV events puts them in direct competition with some of the early-season favorites of the PGA Tour, which are:
WM Pheonix Open, February 6th-9th.
Genesis Invitational, February 13th-16th.
Arnold Palmer Invitational (API), March 6th-9th.
The Players Championship, March 13th-16th.
Both the Genesis and API form two of the eight designated signature events for the 2025 PGA Tour season and will carry purses of $20 million, while the Players will carry the biggest purse of any tour event and will likely eclipse the majors in total prize fund for 2025.
The tone of Norman’s statement echoed Monahan’s remarks from August when he highlighted the momentum on the PGA Tour. However, Monahan did mention ongoing negotiations with the Public Investment Fund (PIF), which finances LIV Golf.
Despite these acknowledgments, neither Monahan nor Norman offered any concrete hope for a resolution to the conflict. Golf fans, many of whom were hopeful for an end to the feud following the announcement of the Framework Agreement in June 2023, have been left disappointed.
While the latest announcements from Monahan and Norman may leave fans feeling more than ever that the resolution of the proposed merger is a long way off, both have to be pragmatic in terms of laying out their respective tour schedules and getting the logistical support required for the host courses as they gear up to stage either the PGA Tour or LIV Golf.
“As we set our sights on 2025, LIV Golf is gearing up for our most ambitious season start, to date,” Norman declared. “Since our debut in 2022, LIV Golf has played 34 tournaments in nine different countries across four continents. We are a global league with a global footprint, and we’re excited to kick off next season with four truly international events that will deliver our unique blend of elite golf, entertainment and culture to fans around the world.” - Greg Norman, CEO, LIV Golf.
“There’s tremendous momentum [on the PGA Tour]. I think that’s reflected in the energy you see coming in the Playoffs, the ’25 schedule, and we’ve seen and continue to see a lot more innovation. Certainly, the conversations with the Public Investment Fund are an important part of the journey that we’re on this year and that we’ll continue to be on.” - Jay Monohan, Commissioner, PGA Tour.
Cabot Collection Partners With Lofoten Links
Josh Sens, writing for golf.com, covered the story of The Cabot Collection’s announcement of a strategic investment in Lofoten Links, a breathtaking property nestled in the rugged landscape of Norway’s remote Lofoten Islands.
This latest addition to Cabot’s portfolio further extends its international reach, bringing its signature blend of world-class golf and extraordinary experiences to Northern Europe.
Perched above the Arctic Circle, Lofoten Links is celebrated as the world’s northernmost links-style golf course. Its dramatic seaside location, framed by the remote beauty of the Lofoten Islands, has earned it a spot among the top golf courses worldwide—ranked No. 24 by Golf Digest and No. 88 by Golf Magazine.
The course’s design is as challenging as it is rewarding. It offers 18 holes that can be played under the midnight sun in the summer or the northern lights in the fall.
But Lofoten Links is more than just a golf destination; it’s a gateway to the beauty of Norway’s coastline. Visitors can stay in Nordic-style lodges that complement the natural surroundings and dine in a charming onsite restaurant that showcases local flavors. The property also offers a range of outdoor activities, such as horseback riding, hiking, and kayaking along the rugged coastline.
Positioned on the island’s northern edge, facing the Norwegian Sea, Lofoten Links provides one of the best vantage points in the world to witness the awe-inspiring northern lights.
This investment comes at a time of significant international expansion for Cabot. In addition to Lofoten Links, the company recently announced the acquisition of Cabot Bordeaux, formerly known as Golf Du Médoc Resort, a premier destination for golf and wine enthusiasts in France.
Cabot’s growing portfolio of luxury resorts includes the award-winning Cabot Cape Breton in Nova Scotia, Cabot Saint Lucia in the Caribbean, Cabot Revelstoke in British Columbia, Cabot Citrus Farms in Florida, and Cabot Highlands in Scotland.
“We are thrilled to join forces with Lofoten Links, a spectacular property that effortlessly aligns with our vision of delivering world-class golf and experiences across the globe’s most remarkable destinations.” - Ben Cowan-Dewar, CEO and co-founder of The Cabot Collection.
PXG Releases New XTreme Tour Golf Balls
It’s a little over a year since PXG launched its first golf ball. The XTreme was gunning for the ultra-competitive premium ball market, taking on the likes of Titleist, TaylorMade, Callaway, and Srixon.
Not only has the XTreme Tour been updated, but a second ball has joined it: the XTreme Tour X.
Both golf balls are three-piece construction and feature 338 dimples.
PXG has reduced the thickness of the urethane cover and mantle layer and increased the size of the core. The bigger core has led to increased ball speeds being recorded between the new and old versions of the XTreme Tour, while the thinner cover enhances feel.
The XTreme Tour X is a higher-spinning, higher-flying model than the XTreme Tour, which PXG believes will favor players with higher swing speeds.
Both balls are available in ultra-bright white, with a yellow option available only on the XTreme Tour. A dozen balls will retail at $49.99 (£40, €45).
PXG offers a discount if you order three dozen, costing $99.99 (£76, €90).
PXG will also have both balls available with official U.S. military branding at a retail price of $54.99.
Srixon ZX Prototypes Break Cover
Prototypes of the popular ZX7 and ZX5 models have broken cover ahead of this week’s Procore Championship at Napa Valley as the PGA Tour enters the Fall season.
First thing to notice and picked up by mygolfspy.com is a subtle change in the naming. The prototypes have the addition of the letter “i” in the naming, so we now have the ZXI7 and ZXI5.
ZXI7
Early photos show a bigger Pureframe ridge placed in the cavity helping to precisely position the center of gravity in each iron.
The ZXI7 will still be a classic forged players cavity model combining both feel and playability required by better ball strikers.
ZXI5
The ZXI5 fits into the player’s distance iron and will likely provide strong competition for the recently launched updated TaylorMade P.770 iron. Mygolfspy.com believes that Srixon will continue with the ZX5’s multi-material approach.
It is likely that Srixon will be employing an updated version of its Mainframe technology, which created variable face thickness to increase forgiveness and maintain high ball speeds across the face.
Both ZXI irons appear to employ Srixon’s VT-Sole design to improve turf interaction. It is also likely that both models have been designed to create the perfect blended set, as both share similar looks in the address position, making the transition from one model to another much easier.
Srixon will gain additional valuable feedback from its tour staff over the coming months before the new irons are released to the public in January 2025.
Wallace Ends Six-Year Drought
Matt Wallace claimed his first DP World Tour title since the 2018 Made in Denmark title to win the Omega European Masters at the stunning Crans-Sur-Sierre Golf Course high in the Swiss Alps.
Wallace took a four-shot lead into the final round, but a tough scoring day and some wayward drives saw his lead cut to one by the time he reached the 17th tee.
Wallace safely parred in but found himself facing a playoff after Spaniard Alfredo Garcia-Heredia birdied the last after his approach shot finished five feet from the hole.
Wallace and Garcia-Heredia returned to the 18th tee, where both players found the fairway. Wallace was the player who executed a precise approach shot to the dangerous 18th hole flag, leaving himself with eight feet for birdie.
Garcia Heredia’s approach erred more on the cautious side, and his lengthy birdie putt was missed, leaving the stage clear for Wallace to calmly roll in his birdie and take the victory.
In securing his fifth DP World Tour title, Wallace also:
Moves to 73 in the official world rankings from 91.
Climbs 95 places to 22nd on the Race to Dubai Rankings in Partnership with Rolex.
Tops the 2025 Ryder Cup qualification points for Team Europe after two counting events.
"It was bringing back memories of two years ago when I lost, I wasn't quite focused then but that's focus for me right there. I'm buzzing.
I had the lead and I could have easily lost it a few times in the last couple of days, especially yesterday with how hard it was playing. But I stuck at it and that's me, and that's golf. For me, that's Matt Wallace golf right there." - Matt Wallace, 2024 Champion, Omega European Masters.
What We Are Reading
As arguably the greatest “will they, won’t they” story continues in golf in the long protracted merger between the PGA Tour and PIF shows no sign of ending, Bob Harig’s article in Sports Illustrated picks up on the latest from Rory McIlroy and his renewed desire to have the tours united sooner rather than later.
Golf Digest provides an extract from a new book scheduled for release in March 2025, entitled: “The Unconquerable Game: My Life in Golf and Business by Ely Callaway.” The book is a collection of memoirs from Callaway, who passed away in 2001 and edited by his son, Nicholas Callaway, provides valuable insight into the pioneering founder of Callaway Golf. The extract is focused on the development of one of the most successful products ever in golf, which laid the foundation for the company’s ongoing success, the Big Bertha.