New Golf Company Stands To Benefit Most From Nike Golf's Departure
Determining who will benefit from Nike Inc (NYSE: NKE)'s departure from golf is the question everyone in the industry has been asking since the news broke this week.
Callaway Golf Co (NYSE: ELY) stock reacted positively from the news, as it is the only pure golf play in the stock market currently. Adidas AG (ADR) (OTC: ADDYY)'s Taylor Made could also see a jump in sales, despite its current negative outlook and potential sale. Titleist with their upcoming IPO could also absorb some sales from Nike, as many Nike professional endorsers may switch back to using Titleist clubs.
PXG Is Playing Through
One new golf brand however, could stand to see the most benefit as Nike opens the door for a new company to make a notable presence in golf. PXG, known as Parsons Xtreme Golf, has taken the golf world by storm in 2016.
The company, started by Godaddy Inc (NYSE: GDDY) founder and billionaire Bob Parsons, signed endorsement deals with Zach Johnson, Billy Horschel and Charles Howell III in 2016. Former Masters winner Charl Schwartzel announced last month he was switching from Nike to PXG.
PXG clubs are they are among the most expensive on the market, combining a sharp design with technological innovations we haven't seen in golf before.
"PXG already has a win this year, which is good. I find it hard for them to gain much share this year but since their technology is so crisp, we could see them improving over the long term," said Michael Williams, golf industry analyst, Forward View Consulting.
Parsons said he has already received 30 calls from player agents with Nike Relationships since the news broke. The biggest news will be what brand of clubs current Nike golf stars Tiger Woods and Rory McIlroy will switch too, and PXG is certainly in contention.
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