Golf is a popular sport with a huge market around the world. As the sport continues to grow, there are many great opportunities for investors to profit from golf’s rising popularity. From buying golf-related stocks and bonds to investing in golf courses, equipment makers, and startups, investors have multiple options to invest in golf. By understanding the market size and growth trends, the major public companies, and the investment risks, investors can make wise investment choices in the golf industry.
Invest in Publicly Traded Golf Stocks
Some of the largest golf companies like Callaway Golf (ELY), Acushnet Holdings (GOLF), Ping (privately held), TaylorMade (owned by Centroid Investment Partners), Titleist (owned by Acushnet Holdings), and ClubCorp Holdings (MYCC) are publicly traded on stock exchanges. Investors can buy their stocks and bonds to invest in golf. These stocks often see nice growth when the golf industry is expanding. However, the stocks can be volatile and face risks like consumer discretionary spending drops during recessions. Overall, buying shares in leading golf stocks gives broad exposure to the golf industry.
Invest in Golf Courses and Country Clubs
For investors interested in specific golf assets, buying and operating golf courses can be a lucrative investment if done properly. Golf course values range widely from under $1 million for small 9-hole courses to over $50 million for top-tier 18-hole courses. Things to analyze when buying a course include the local demographics, competing courses nearby, condition of the course, and potential to raise prices/fees over time. Hiring a golf course management company to operate the course is advisable. Buying into an existing country club as a member with an equity stake is another option.
Invest in Golf Equipment Startups
Golf equipment is a $5 billion global market, providing opportunities for investors to fund startups making innovative golf gear. For example, PXG which makes high-end golf clubs received over $100 million from investors. Blast Motion raised over $20 million for its sensor technology and analytics for golfers. Investing in equipment startups early can produce huge returns if the company takes off. But there are risks as most startups fail and golf equipment is slow to change. Deep industry knowledge helps identify the startups with game-changing tech that may disrupt leading brands.
Invest in Golf Training Technologies
The rise of golf simulation, virtual reality, and data analytics for improving skills has opened investment prospects. Full Swing Golf Simulators raised over $160 million before being acquired by investment firm Bruin Capital. Tech startups like Zepp Golf sensors, Skillest interactive coaching, and PhiGolf home simulators present investment opportunities in golf training tech. But adoption rates and real revenue potential for each new technology must be carefully evaluated.
Invest in Public Golf Course Operators
Publicly traded golf course management and ownership companies provide diversified exposure to golf facilities. For example, American Golf owns and operates over 140 courses across the U.S. under brands like Arcis Golf. ClubCorp Holdings (MYCC) owns or operates over 200 golf clubs and resorts. And Troon manages over 600 courses worldwide. Investing in these golf course management companies reduces risk compared to owning a single course, providing diversification across regions and business models.
In summary, investors have many options to invest in golf, ranging from stocks in leading golf companies to funding startups to purchasing golf courses and country clubs. By understanding growth trends and risks in sectors like equipment, technology, real estate, and services, investors can build a diversified portfolio with exposure to the golf industry.