Casual hobbyists are ruining things for Topgolf Callaway, The Wall Street Journal reports.
While serious golfers are reliably showing up on golf courses and spending money on their equipment and golf balls, recreational players are no longer as keen on shelling out some $70 an hour on a driving range for fun these days.
The division in spending is one of many problems plaguing Callaway since it bought recreational driving range operator Topgolf, and after four years of trying to make the relationship work, the company’s board announced last week that it would break up the two companies.
The target date to spin off Topgolf would be in the second half of 2025, though the company also said it is also considering selling Topgolf to another owner if an attractive offer is made.
Investors weren’t enthusiastic about the combination to begin with. Shares of the company, previously known as Callaway, fell 19% following the initial announcement of the deal in October 2020.
The company initially thought that visitors to Topgolf would become newbie golfers who might seek out Callaway products after trying them out at those venues.
