NIke buying Taylormade?

My very short and concise answer: No.

I think lesson learned after having left the market in the first place. You don't just get right back into it again.
 
Nearly 20 years ago Converse had $200 million annual sales revenues, and Nike acquired the company from a bankruptcy court for $300 million. Today Converse annual sales revenues are approximately $2 billion.

Well, maybe they could push TM like that as well.

Like I said, I dont think it will happen. I am not even really advocating for it to happen. I just think it is a fun conversation and you seem interested enough on the other side so I figure I would push the "for" position. haha.
 
My very short and concise answer: No.

I think lesson learned after having left the market in the first place. You don't just get right back into it again.

What if they were really not getting back in? Taylormade is established, successful and is one of the top 3 or 4 companies right? Nike was never even close to that. Do any of us think Taylormade is at risk of folding? No, this would seem to me to be the best way to go about it. Probably would have been better for Nike to purchase a successful brand in the beginning. Rather than try to build one from the ground up that was worthy of the Nike label..

One more side thought. Nike I think to many a golfer has a serious image problem. For a number of reasons. Acquiring Taylormade "could" help that..
 
What if they were really not getting back in? Taylormade is established, successful and is one of the top 3 or 4 companies right? Nike was never even close to that. Do any of us think Taylormade is at risk of folding? No, this would seem to me to be the best way to go about it. Probably would have been better for Nike to purchase a successful brand in the beginning. Rather than try to build one from the ground up that was worthy of the Nike label..

One more side thought. Nike I think to many a golfer has a serious image problem. For a number of reasons. Acquiring Taylormade "could" help that..
Sure, buy a top brand to be successful would be the best choice if they wanted to get back into it. But is it worth it in terms of what you actually gain. Nike could market whatever they want and it would sell, probably just as well as whatever they could make off golf gear again.

Of any of the major brands, just in my own opinion, I do actually think TM is the most at risk of folding. Controversial, but hear me out.
Ignoring sales, TM I tend to think are functioning in the same manner that Nike was..... buy up all the top talent.
Get your gear on the "name guy", and see how it works out. Did it work out for Nike?

But I know nothing. I just would buy almost every other brand on the planet before TM at this point.
 
Nearly 20 years ago Converse had $200 million annual sales revenues, and Nike acquired the company from a bankruptcy court for $300 million. Today Converse annual sales revenues are approximately $2 billion.
You were right. How in the fresh hell does Converse pull in $1.91b? Apparently hipsters buy a lot of Chuck Taylors. I just saw something that KPS is asking $2b for Taylormade? Seems like a lofty (pun intended) ask.
 
You were right. How in the fresh hell does Converse pull in $1.91b? Apparently hipsters buy a lot of Chuck Taylors. I just saw something that KPS is asking $2b for Taylormade? Seems like a lofty (pun intended) ask.

I have 3 pair.. haha
 
We have seen solid equipment brands fail in the golf industry for a variety of reasons. Some have resurfaced (Wilson Staff, Ben Hogan), and others never to be seen again (MacGregor, Spalding Topflite, PowerBilt). I don't see Nike reentering the equipment market by buying TM.
 
Why did Adidas pawn it off and why would Nike think it would do better?

For the same reason Nike discontinued producing golf equipment hard goods. At one time the golf ball industry was highly profitable but a reduction of barriers to entry (more factories than previously available to produce balls) has diminished the previous appeal of that segment. Producing clubs has never been an especially profitable and, or, consistently profitable business. The sports apparel and footwear industry is an enormous worldwide sales and profit volume business, so that is where Adidas ($25 billion) and Nike ($40 billion) belong.
 
For the same reason Nike discontinued producing golf equipment hard goods. At one time the golf ball industry was highly profitable but a reduction of barriers to entry (more factories than previously available to produce balls) has diminished the previous appeal of that segment. Producing clubs has never been an especially profitable and, or, consistently profitable business. The sports apparel and footwear industry is an enormous worldwide sales and profit volume business, so that is where Adidas ($25 billion) and Nike ($40 billion) belong.

I am pretty sure you are wrong about all of this.. golf balls are extremely profitable. Why do you think everyone is pushing ball sales? Clubs are usually in the 20-30 point range..
 
What if they were really not getting back in? Taylormade is established, successful and is one of the top 3 or 4 companies right? Nike was never even close to that. Do any of us think Taylormade is at risk of folding? No, this would seem to me to be the best way to go about it. Probably would have been better for Nike to purchase a successful brand in the beginning. Rather than try to build one from the ground up that was worthy of the Nike label..

One more side thought. Nike I think to many a golfer has a serious image problem. For a number of reasons. Acquiring Taylormade "could" help that..
Here's the problem with most company acquisition. The company try to recoup their money within weeks so they layoff all duplicate positions and consolidate all duplicate locations (see Golf Channel) within the mother company. Therein lies the problem. Some smart know it all will suggest getting rid of the R&D department and the next thing you know, Taylormade is in the dumps....That's the way most buyouts work.
 
Here's the problem with most company acquisition. The company try to recoup their money within weeks so they layoff all duplicate positions and consolidate all duplicate locations (see Golf Channel) within the mother company. Therein lies the problem. Some smart know it all will suggest getting rid of the R&D department and the next thing you know, Taylormade is in the dumps....That's the way most buyouts work.

sure that could happen or it couldn’t. Most like this is all just speculation and theoretical as Nike is not going to buy them. Haha
 
I am pretty sure you are wrong about all of this.. golf balls are extremely profitable. Why do you think everyone is pushing ball sales? Clubs are usually in the 20-30 point range..

Yes, the ball is business is better than the club business. But what's changed in recent years is the proliferation of Asia based factories capable of producing balls. This has resulted in the emergence of more brands selling balls, which reduces market share a bit for all the players.
 
Yes, the ball is business is better than the club business. But what's changed in recent years is the proliferation of Asia based factories capable of producing balls. This has resulted in the emergence of more brands selling balls, which reduces market share a bit for all the players.
I’d be curious where these statistics come from, both with number of production facilities and market share?
 
This would make way more sense to me than when they tried starting from scratch. It seems like this could be a really good way to get back in to the equipment side and grow the golf segment overall.
 
Yes, the ball is business is better than the club business. But what's changed in recent years is the proliferation of Asia based factories capable of producing balls. This has resulted in the emergence of more brands selling balls, which reduces market share a bit for all the players.

I am not sure that has changed. More just showed how there was hole there and some people were able to fill the gap and still make money utilizing expired patents mass produced balls that all come from a single factory.

nike may not want to get back into the hard goods business. But there is money to be made.
 
What does Nike have to lose? IMO nothing. Maybe a higher up likes golf, sees that golf is “booming” at this time, as bad as it sounds but covid did wonders for golf. Ideas that fail are often followed up with successes. Nikes profit as a whole is never going to go away so I don’t see any reason why they can’t get back into golf or any sport for that matter.
 
I am not sure that has changed. More just showed how there was hole there and some people were able to fill the gap and still make money utilizing expired patents mass produced balls that all come from a single factory.

nike may not want to get back into the hard goods business. But there is money to be made.

If you look at the packaging of golf balls you will see production from Indonesia, Taiwan, Vietnam, Thailand, and China. Not long ago production of golf balls was limited to the USA and Japan. More sources of production always means the emergence of more brands, which results in a bit less market share for each existing brand.
 
I hope so. Taylormade could use serious help in the quality control department. My my irons look like trash after a year and the general response is "did you swing them? Oh you did? Well then it's on you."
 
If you look at the packaging of golf balls you will see production from Indonesia, Taiwan, Vietnam, Thailand, and China. Not long ago production of golf balls was limited to the USA and Japan. More sources of production always means the emergence of more brands, which results in a bit less market share for each existing brand.
Don't Callaway, Titleist, Bridgestone, and Taylormade make their golf balls in the States?
 
Don't Callaway, Titleist, Bridgestone, and Taylormade make their golf balls in the States?

Each company is producing some model balls at USA factories, other model balls at Asia country factories, some, models balls a mix (core and some layers produced in one country and outer layer cover produced in another country etc...) .
 
Let’s face it - a lot of Nike’s success was due to Tiger playing their clubs. If he had been playing a K-Mart box set, they would have sold in the millions. There’s nobody they could put on their staff now that would move equipment like he did.
 
Let’s face it - a lot of Nike’s success was due to Tiger playing their clubs. If he had been playing a K-Mart box set, they would have sold in the millions. There’s nobody they could put on their staff now that would move equipment like he did.
Brooks is still using a Nike club or two.....
 
I wouldn't mind the decision to bring them in.

Mostly because I think it'd give Nike a shot in hell of actually having an idea what golfers would willingly wear on a golf course, in materials that help them - not the garbage they've been calling golf apparel for the last few years.
 
I wouldn't mind the decision to bring them in.

Mostly because I think it'd give Nike a shot in hell of actually having an idea what golfers would willingly wear on a golf course, in materials that help them - not the garbage they've been calling golf apparel for the last few years.
Man, so true! Their apparel (especially on Tour) has been hot garbage.
 
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