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Callaway Golf Company

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(Redirected from Ely Callaway Jr.)

Topgolf Callaway Brands Corp.
FormerlyCallaway Golf Company (1982–2022)
Company typePublic company
ISINUS1311931042 
IndustrySports equipment, textile
Founded1982; 42 years ago (1982)
FounderEly Reeves Callaway, Jr.
Headquarters
Carlsbad, California
,
U.S.
Area served
Worldwide
Key people
Chip Brewer (CEO)
Products
  • Topgolf
  • Golf Equipment
  • Active Lifestyle
RevenueIncrease US$1.2 billion (FY 2018)[1]
Increase US$31 million (FY 2014)[2]
Increase US$16 million (FY 2014)[2]
Total assetsDecrease US$625 million (FY 2014)[3]
Total equityIncrease US$292 million (FY 2014)[3]
Number of employees
24,800 (December 2021)
SubsidiariesTopgolf
Callaway Golf
Callaway Apparel
Cuater
TravisMathew
Toptracer
Odyssey
OGIO
Jack Wolfskin
World Golf Tour
Websitecallawaygolf.com

Callaway, legally Topgolf Callaway Brands Corp., is an American global sports equipment manufacturing company that designs, manufactures, markets and sells golf equipment, more specifically clubs and balls, also including accessories such as bags, gloves, and caps. The company also produces clothing through its subsidiary "Callaway Apparel,” and golf shoes, through its "Cuater" subsidiary. In 2021, the company purchased Topgolf, and thus also operates a chain of golf-related amusement and events centers.

The company sells its products through golf retailers and sporting goods retailers, through mass merchants, directly online, and through its pre-owned and trade-in services. Callaway markets its products in more than 70 countries worldwide. The company, based in Carlsbad, California, is the world's largest manufacturer of golf clubs.

In past years, Callaway marketed products under the "Toulon Design" and "Odyssey" putter brands, acquired in 1997,[4] as well as "Top Flite", "Strata" and "Ben Hogan" brands picked up following the bankruptcy of Spalding's former golf division in 2003.[5]

History

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Callaway brand logo

Callaway Golf Company was founded by former Burlington Industries textile president, Ely Callaway Jr. Callaway was raised in LaGrange, Georgia, and was a graduate of Emory University. He had previously been successful in the textile and wine industries, and was also an avid golfer. Among his favorite club brands was Hickory Sticks USA, which was known for producing clubs with hickory shafts and steel cores. At that time, Hickory Sticks was owned by Richard Parente, Dick De La Cruz, and Tony Manzoni. When Hickory Sticks started running low on funds, they began seeking investors and approached Callaway, who had just sold his vineyards for a $9 million profit. In 1982, he bought half of Hickory Sticks USA and the company was renamed "Callaway Hickory Stick USA." In 1983, he became the company's president and moved its headquarters to Carlsbad, California where he could be found selling clubs out of his Cadillac. In 1984, Callaway bought the rest of the company for another $400,000. The company's name was changed to its present name in 1988.[6]

In 1985, the company hired Bruce Parker as head of sales, who later became the company's Chief Merchant and, through his tenure with Callaway Golf as head of sales, was responsible for sales in excess of $3.0 billion.[citation needed] He was involved in all major decisions during the company's growth.

Golf club made by Callaway

In 1986, Callaway hired a billiard cue designer, Richard C. Helmstetter, as a consultant. Helmstetter was named chief club designer that same year and introduced computer-controlled manufacturing machines. With his help and that of Glenn Schmidt, the company's master tool maker, the company developed the original Big Bertha driver using large-volume (190cc) steel clubhead. The Big Bertha driver grew to 290 cc in 1997.[7]

In 1996, the company hired Roger Cleveland as chief club designer and in 2002, launched the Callaway Golf Forged Wedges, constructed from carbon steel with modified U-grooved faces.[8]

In 1996, Callaway announced development of a new golf ball, under the leadership of Chuck Yash, the former head of Taylormade Golf. Callaway Golf spent three years developing the ball and a state-of-the-art production facility. The company invested $170 million in research and development, and construction of the 225,000-square-foot (20,900 m2) production facility.

Callaway Golf Company engineers, recruited from Du Pont and Boeing, used aerodynamic computer programs (first used by Boeing and General Electric) to evaluate more than 300 dimple patterns and more than 1,000 variations of ball cores, boundary layers, and cover materials to create the new Rule 35 ball. They settled on only two versions of the Rule 35 ball—choosing to develop a "complete-performance" ball rather than separate balls developed for spin, control, distance, and durability. Ely Callaway explained the company's product development objectives as follows: "We have combined all of the performance benefits into one ball so players no longer need to sacrifice control for distance, or feel, or durability. Each Rule 35 ball contains a unique synergy of distance, control, spin, feel and durability characteristics. This eliminates confusion and guesswork in trying to identify the golf ball that is right for each individual golfer."[9]

In 1997, Odyssey Sports was acquired, expanding Callaway's line of putters.[4] This led to introduction of the Odyssey White Hot putter line in 2000.

Ely Callaway resigned as CEO and president in 1996, remaining as chairman of the board. Donald H. Dye was named CEO and president. Callaway also continued as president and CEO of Callaway Golf Ball Company. In 1998 he again became president and CEO of Callaway Golf Company, but died of pancreatic cancer on July 5, 2001. Ron Drapeau assumed his positions.[10]

In 2003, Drapeau announced the company's intention to purchase Top-Flite Golf and its Ben Hogan Golf division soon after Top-Flite Golf filed for Chapter 11 bankruptcy.[11] Due to competition from Adidas, the acquisition cost Callaway Golf $169 million.[5]

On November 8, 2004, Callaway Golf named chairman and chief executive William C. Baker president and COO, replacing Patrice Hutin.[12]

In August 2005, George Fellows was named president and CEO of Callaway Golf. He retained this position until June 2011.[13]

In 2012, Oliver "Chip" Gordon Brewer III was named CEO of Callaway. Callaway sold the Top-Flite brand to Dick's Sporting Goods, citing declining sales,[14] and the Ben Hogan brand to Perry Ellis International, with Callaway retaining several trademarks, including Apex and Edge.[15]

TravisMathew at The Summit (Alabama)

In 2017, Callaway acquired OGIO, a US-based bag and apparel brand, and TravisMathew, a California-based lifestyle and golf apparel brand.[16][17]

In 2019, Callaway acquired German outdoor apparel company Jack Wolfskin.[18]

In 2020, Joe Flannery was named Executive Vice President of Callaway.[19]

On October 27, 2020, Callaway announced it will acquire Topgolf Entertainment Group for $2 billion.[20]

On August 24, 2022, Callaway Golf Company announced plans to change its corporate name to Topgolf Callaway Brands Corp.[21]

Effective September 7, 2022, Topgolf Callaway Brands Corp. changed its ticker symbol on the New York Stock Exchange from "ELY" to "MODG".[21]

Financial

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In February 1992, Callaway Golf went public on the New York Stock Exchange with a market capitalization of $250 million. By late 1997, it reached a market capitalization of over $3.0 billion.[citation needed]

Endorsements

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Callaway has maintained endorsement deals with many professional golfers who play on the world's leading tours, including Xander Schauffele, Sam Burns, Chris Kirk, Akshay Bhatia, Min Woo Lee, Danny Willett and Francesco Molinari.

They have also had commercial relationships with some of the legends of the sport including Arnold Palmer and Annika Sörenstam, and celebrities such as Justin Timberlake and Stephen Curry.[22] After being endorsed by Callaway late in his career, Seve Ballesteros expressed his gratitude to Ely Callaway by giving him a vintage Rolex, one he had worn since he first signed with the watchmaker.[23]

Awards

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On December 8, 2005, Callaway Golf received the 2005 Torch Award for Marketplace Ethics, from the San Diego Better Business Bureau.

References

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  1. ^ "Callaway Golf Company Profile". Craft. Retrieved August 30, 2019.
  2. ^ a b Market Watch - Investment Bulletin 1
  3. ^ a b Market Watch - Investment Bulletin 2
  4. ^ a b "Callaway Golf in $130 Million Deal for Odyssey Sports". New York Times. July 22, 1997. Retrieved October 15, 2008.
  5. ^ a b "Company news; Callaway Golf beats out Adidas to buy top-flite". New York Times. September 5, 2003. Retrieved October 15, 2008.
  6. ^ "Golf - CBSSports.com CBS Sports - Golf". Retrieved March 5, 2023.
  7. ^ "History of Callaway Golf Company – FundingUniverse". www.fundinguniverse.com. Retrieved March 5, 2023.
  8. ^ "Callaway Forged Wedge". Archived from the original on September 27, 2007. Retrieved September 6, 2007.
  9. ^ "Higher Education Support | McGraw Hill Higher Education". McGraw Hill. Retrieved March 5, 2023.
  10. ^ "Ely Callaway 2001 Deaths". www.infoplease.com. Retrieved March 5, 2023.
  11. ^ "SEC Filing". Topgolf Callaway Brands. June 30, 2003. Retrieved September 7, 2023.
  12. ^ "Callaway Golf Names Baker President, COO". Archived from the original on September 24, 2015.
  13. ^ Stachura, Mike (June 29, 2011). "Callaway CEO George Fellows resigns". Golf Digest. Retrieved December 16, 2022.
  14. ^ Mike Stachura (April 4, 2012). "Callaway sells Top-Flite to Dick's". Golf Digest. Retrieved December 24, 2015.
  15. ^ Achenbach, James (September 5, 2013). "Callaway to resurrect Apex irons". Golfweek. USA Today. Retrieved July 29, 2020.
  16. ^ Callaway Golf Company (January 11, 2017). "Callaway Golf Company Acquires OGIO International, Inc., A Leading Lifestyle Brand, For $75.5 Million". Callaway Golf Company. Retrieved January 22, 2019.
  17. ^ Callaway Golf Company (August 21, 2017). "Callaway Golf Company Completes Acquisition Of TravisMathew For $125.5 Million And Updates TravisMathew Financial Guidance". Callaway Golf Company. Retrieved January 22, 2019.
  18. ^ Callaway Golf Company (January 4, 2019). "Callaway Golf Company Completes Acquisition Of Jack Wolfskin, A Premium Outdoor Apparel Brand, For €418 Million". Callaway Golf Company. Retrieved January 22, 2019.
  19. ^ "Callaway Golf hires executive to run expanding apparel business". San Diego Union-Tribune. March 2, 2020. Retrieved March 3, 2020.
  20. ^ "Callaway Golf just acquired all of Topgolf in an appeal to millennial customers". Businessinsider.com. October 27, 2020. Retrieved October 27, 2020.
  21. ^ a b "Callaway Golf Company Announces Plans for New Corporate Name: Topgolf Callaway Brands Corp". Topgolf Callaway Brands Corp. August 24, 2022. Retrieved October 1, 2022.
  22. ^ Golf, Callaway. "Callaway Golf and Stephen Curry Announce Multi-Year Partnership Extension". www.prnewswire.com. Retrieved March 5, 2023.
  23. ^ Dorman, Larry (May 7, 2011). "Ballesteros 'Could Get Up and Down Out of a Garbage Can'". The New York Times. Retrieved March 5, 2023 – via NYTimes.com.
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