Topgolf

Last updated
Topgolf International, LLC
Topgolf Entertainment Group
Type Subsidiary
Industry Sports entertainment
Founded2000;21 years ago (2000)
Watford, England, U.K.
FoundersSteve Jolliffe
Dave Jolliffe
Headquarters,
Number of locations
50+ [1]
Area served
United States, United Kingdom, Australia, Canada, Germany, Mexico and Dubai.
Key people
  • Erik Anderson (Executive chairman)
  • Artie Starrs (CEO)
Brands
Topgolf
Parent Callaway Golf Company
Divisions
  • Topgolf Swing Suite
  • Toptracer Global
Subsidiaries
  • Topgolf Group Limited
  • Topgolf USA, LLC
  • Topgolf Media, LLC
Website www.topgolf.com

Topgolf is a global sports entertainment company headquartered in Dallas, Texas with locations in the United States, United Kingdom, Australia, Mexico and Dubai. The company was acquired by publicly traded Callaway Golf in March, 2021. TopGolf locations in Australia are run by a joint venture of Topgolf International (3.7%) and Village Roadshow Theme Parks. In Canada, a joint venture with Cineplex Entertainment has been established to operate locations there.

Contents

History

Twin brothers Steve and Dave Jolliffe had sold their mystery-shopping business and were looking for a new project in 1997. Both golfers, they began complaining about golf's issues: the time factor and lackluster driving ranges. Looking to improve the game, the Jolliffes looked to the then-new commercial microchip technology and placed it in the golf ball. From this, they designed a new game, Topgolf, which is a redesigned driving range. In Watford, just outside London, the twins built the first location, which opened in 2000. The golfing community and businesses were not enthusiastic about the game. The PGA and golf equipment companies refused to get involved. [2]

In 2003, bankers approached Richard Grogan to invest but were rejected. Grogan later had been induced to visit the Topgolf facility in February 2004. Seeing only a 5% return on investment, Grogan turned them down again, although he was otherwise impressed during the visit. Grogan with three other partners—David Main, Eric Wilkinson, Tom Mendell—then struck upon how to increase business by making it an experience by having an event space, larger kitchens, and restaurants, making locations 3 to 4 times the original's size. [2] Grogan, Main, Wilkinson, Mendell founded and started up the US licensee, Topgolf International, and found investors. WestRiver Group was a lead investor. [3]

Alexandria, Virginia was selected due to its close proximity to Washington, D.C., which could attract government officials from golf courses. This location opened in 2005. This location struggled so Grogan decided, although it is in a colder climate, to open a location in Chicago. Snow closed the location for its first four weeks and caused equipment damage. The next Topgolf location, Dallas, was selected for its connection to golf, a warmer environment, and Fortune 500 companies. With little traffic at any location, Grogan expect to be closed by May 2007. With an energetic Dallas staff in February 2007, Grogan and Main brainstormed a number of low-tech marketing techniques to draw customers as they needed to explain Topgolf like in the UK. After six months, the Dallas facility had a six-hour wait. [2]

In 2009, Topgolf International (US) acquired Topgolf UK [3] then in July from World Golf Systems the TopGolf intellectual property aspects. [4] By 2011, WestRiver's head Erik Anderson took over the executive chairman post from Grogan. Anderson moved to have newer location be even larger, with a full line kitchen and executive chefs replacing small kitchens and more golfer space. [2] Ten locations were opened in 2013. Topgolf had sales of $163.5 million in 2014 to make the Inc. 500. [3] Mobile phone apps were issued in 2013, with social media digital walls added to locations in 2015. [2]

By 2015, Topgolf had 28 locations that brought in 8 million customers. In January 2016, the company purchased the World Golf Tour gaming company. [5] Also that year, Protracer golf ball tracking technology was purchased and renamed Toptracer. [2]

Topgolf and Village Roadshow Theme Parks agreed in 2016 to a joint venture to bring Topgolf to Australia. Village Roadshow received a 67% stake in the joint venture by providing 100% of the startup funds. [6] On June 23, 2016, it was announced that Village Roadshow would open a venue next door to its popular theme parks, Warner Bros. Movie World in Oxenford, Queensland in Australia. This was the first Topgolf venue outside the US and the UK [7] The location opened in June 2018. Village indicated in March 2018 that they were looking for location proposals for up to eight Australia and Asia/Pacific locations. In July 2018, Village Roadshow sold $50 million in shares to fund Topgolf and for other purposes. In August 2018, Topgolf Australia reduced its stake in the joint venture from 33% to 3.7% with options to boost its share back up to 33% before December 31, 2020. Despite this action, Village Roadshow CEO Clark Kirby said the company continues to actively pursue other locations after encouraging financial results from Topgolf Australia. [6]

In 2017, Topgolf created a new television series titled Who Will Rock You, where eight of the best unsigned bands across the country compete for $50,000 and a Topgolf tour. Season one premiered in May 2018 won by Crimson Riot! female-led rock group. A second season with Matador Content and music publisher BMG was agreed upon with a March 28, 2019 start with 12 unsigned bands and a prize of $50,000 and signing with BMG. [8] Topgolf Studios had four series available on its YouTube channel by October 2, 2019. At that time, the unit agreed with Will Smith's Westbrook Media to produce additional series with the unit for Topgolf starting with This Joka comedian documentary series. [9]

Canadian movie theatre company Cineplex Entertainment announced it entered a joint venture with Topgolf in July 2017 to open several Topgolf entertainment locations across Canada. This is Topgolf's first foray into Canada. [10]

Topgolf gave the Seattle area a preview of the venue with its first Crush event at T Mobile Park in February 2017. [11] On April 9, 2019, the company announced the first location for a new smaller version of its venue, Topgolf Lounge, in Kirkland, Washington [12] and opened in January 2020. [1]

Merger with Callaway

On October 27, 2020, Callaway Golf Company announced it will acquire Topgolf for $2 billion. [13] On the date of such announcement, Callaway was holding 14% share of Topgolf. [14] Callaway has been the investor for Topgolf since 2006, with the present CEO Chip Brewer serving on the Topgolf board since 2012. [15] [16]

Games

The Topgolf games can be played by all ages and skill levels, and the micro chipped golf balls score themselves, providing players with instant feedback on each shot's accuracy and distance. [17]

Locations

Picture of tees at Topgolf in Las Vegas, Nevada TopGolf Vegas Tees.jpg
Picture of tees at Topgolf in Las Vegas, Nevada
A Topgolf location in Brandon, Florida. TopGolf Exterior Brandon FL.jpeg
A Topgolf location in Brandon, Florida.

There are currently 50+ Topgolf locations, [1] three in the United Kingdom, [17] and one in Australia and Mexico. [6] Each Topgolf venue features climate-controlled hitting bays for year-round play, food, beverage, music and HDTVs on which various sports games are shown, such as football, basketball and golf. Topgolf also offers golf lessons, leagues, tournaments, concerts, and corporate and social events.

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References

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  2. 1 2 3 4 5 6 Notte, Jason (September 19, 2018). "The Topgolf Founders Fought Through Countless Rejections -- and Built America's Favorite New Game". Entrepreneur. Retrieved May 1, 2019.
  3. 1 2 3 Goldberg, Steve (December 17, 2018). "Forget WeWork. Topgolf Is Fast Becoming the Cool Place to Do Business". Inc.com. Retrieved May 1, 2019.
  4. Sherman, Ed (July 22, 2009). "TopGolf adds to arsenal". Crain's Chicago Business. Retrieved May 1, 2019.
  5. Mayo, Ashley (January 27, 2016). "Topgolf is about to get even better after its latest acquisition, World Golf Tour". Golf Digest. Retrieved June 20, 2016.
  6. 1 2 3 Mason, Max (January 16, 2019). "Village Roadshow board halts Topgolf expansion plans amid Kirby family fallout". Australian Financial Review. Retrieved May 1, 2019.
  7. "Movie World to bring Topgolf to Australia in 2017". News.com.au. Retrieved 2016-06-23.
  8. Brooks, Dave (March 13, 2019). "Topgolf, Matador and BMG Partner On Second Season of 'Who Will Rock You?'". Billboard. Retrieved January 9, 2020.
  9. Spangler, Todd (October 2, 2019). "Will Smith and Jada Pinkett Smith's Westbrook Media Inks Production Deal With Topgolf Studios". Variety. Retrieved January 9, 2020.
  10. "Cineplex to open Topgolf complexes in Canada". BNN Bloomberg. The Canadian Press. July 26, 2017. Retrieved January 9, 2020.
  11. Soper, Taylor (February 19, 2017). "Topgolf comes to Seattle: Testing the driving range-meets-bowling-alley concept at Safeco Field". GeekWire. Retrieved February 14, 2020.
  12. "First-ever 'Topgolf Lounge' coming to Kirkland". KIRO. Cox Media Group. April 9, 2019. Retrieved February 14, 2020.
  13. "Callaway Golf just acquired all of Topgolf in an appeal to millennial customers". Businessinsider.com. 2020-10-27. Retrieved 2020-10-27.
  14. Lombardo, Cara (2020-10-27). "Callaway Golf to Buy Rest of Topgolf Entertainment". Wall Street Journal. ISSN   0099-9660 . Retrieved 2020-11-23.
  15. "Topgolf CEO discusses merger with Callaway, continued international expansion". www.bizjournals.com. Retrieved 2020-11-23.
  16. "Callaway CEO talks Topgolf merger and growth outlook". Invezz. 2020-10-28. Retrieved 2020-11-23.
  17. 1 2 3 Beedle, Matthew (January 1, 2018). "What is Topgolf? Where is your nearest venue?". National Club Golfer. Sports Publications Ltd. Retrieved May 1, 2019.