Been a long time since something exciting happened in the business side of golf, right? Well, TaylorMade has changed that. The giant in the sector and a brand that notably supported Tiger Woods during his tumultuous split from Nike is set to change hands. In 2024, Tiger Woods ended his 27-year partnership with Nike, a deal believed to be worth $500 million that famously featured his iconic “Sunday red” attire. Following this split, Woods launched his own clothing line, “Sun Day Red,” capitalizing on his association with the signature color. And now, the company that stood by Woods during this transition is making headlines of its own.
According to reports, Centroid Investment Partners, the South Korean private equity firm that acquired TaylorMade for $1.7 billion in 2021, is planning to divest its stake in the company. This move comes despite TaylorMade’s continued success in the market, with top golfers like Rory McIlroy, Scottie Scheffler, and Tommy Fleetwood using their equipment.
The decision to sell TaylorMade was reportedly made after a thorough review by JP Morgan and Jeffries, who advised Centroid that an outright sale would be more favorable than an initial public offering (IPO). “We conducted a thorough analysis of various monetization strategies and concluded that a stake sale provides a more favorable risk-return profile for our limited partners, compared to an IPO,” a Centroid official explained. With a potential sale price of $3.5 billion, this deal could mark a significant shift in the golf equipment landscape.
However, the sale may not be straightforward due to complications with F&F, the Korean fashion conglomerate that invested $392 million in TaylorMade’s acquisition. F&F reportedly believes it has a first right of refusal on any potential sale and has expressed opposition to a sale in favor of an IPO.
Centroid officials maintain that F&F’s control over specific decisions is limited, but industry observers suggest F&F could secure control through fund liquidation, potentially receiving shares directly. This development adds an intriguing layer of complexity to the potential sale of TaylorMade. A sale or not, TaylorMade is surely on its path to success, as even Nike couldn’t match what it did for Woods last year.
Tiger Woods’s TaylorMade deal offers something Nike couldn’t match
Tiger Woods’ new partnership with TaylorMade for his Sun Day Red golf-accessory line appears to give him a level of ownership and control he never had with Nike. After 27 years with the iconic brand, Woods’ $500 million endorsement deal came to an end, and he joined forces with TaylorMade. Trademark filings suggest that the two have set up a new company, TaylorMade Lifestyle Ventures LLC, to sell Sun Day Red products, indicating shared ownership and profits between Woods and TaylorMade.
TaylorMade CEO David Abeles described the partnership as “full-blown” and “unequivocal,” stating that there’s no influence from TaylorMade on the Sun Day Red brand. This deal structure is notable, as many top athletes, including Michael Jordan, Serena Williams, and LeBron James, have had similar partnerships with major brands that included ownership stakes. Woods’ deal with TaylorMade seems to offer him a level of control and financial involvement that he didn’t have with Nike, potentially setting a new standard for athlete-brand partnerships. With all its successful partnerships, do you think TaylorMade will find the same fulfillment in its new endeavour? Let us know your thoughts in the comment section below!
