Phil Mickelson’s Liv Golf wish could come true after ‘praying’ for Topgolf deal

Phil Mickelson’s Hopes for PIF’s Acquisition of Topgolf Callaway Strengthened Amid Strategic Review

Phil Mickelson, a prominent figure in LIV Golf and a long-time Callaway sponsor, may see his aspirations for the Saudi Arabia Public Investment Fund (PIF) to acquire Topgolf Callaway come closer to fruition. This development follows the company’s recent announcement of a strategic review after what it described as a “disappointing” financial performance.

Earlier this year, rumors surfaced that PIF, a key backer of the LIV Golf venture, was interested in acquiring Topgolf Callaway Brands, which owns the popular Topgolf driving range chain and is one of the world’s leading golf equipment manufacturers. In response, Mickelson expressed his enthusiasm, stating that he was “praying” for the deal to happen. However, Topgolf Callaway dismissed the speculation in March, asserting that no such discussions were taking place. This rumor originated from a report by South Korea’s Chosun Daily.

On Wednesday, the company’s position appeared to shift as it announced a strategic review to evaluate its operations. Chip Brewer, President and CEO of Topgolf Callaway Brands, acknowledged the potential for significant growth and financial returns from Topgolf but also expressed disappointment in the company’s recent stock performance and the decline in same-venue sales.

Before merging with Topgolf in 2018, Callaway had held an 18% stake in the company. Despite the decline in same-venue sales, Topgolf Callaway reported strong overall performance in the second quarter of this year, with revenue from Topgolf venues reaching $494.4 million, bolstered by the opening of three new locations in the U.S. and four more planned. However, the company’s golf club manufacturing revenue dropped by 8.2% to $413.8 million, which was attributed to the timing of product launches, particularly the Paradym AI Smoke collection released in Q1.

In addition to its golf-related ventures, Topgolf Callaway generated $249.6 million in Q2 revenue from its other brands, including Jack Wolfskin and Ogio. Despite these strong figures, the company’s strategic review raises concerns about its future direction. The review will explore various options to stimulate growth, including a potential spin-off of Topgolf, which could result in the business being divided into separate entities.

Topgolf has revolutionized the golfing experience, offering a mix of entertainment, dining, and social interaction, making the sport more accessible to a broader audience, particularly young adults. Despite Topgolf Callaway’s earlier denials, rumors persist that a deal with PIF could be an attractive proposition for the Saudis, particularly as they seek to expand LIV Golf’s presence in the U.S. and leverage new marketing opportunities. PIF’s involvement in the golf world became prominent after the launch of the controversial LIV Golf league in 2022, which successfully lured several top players from the PGA Tour.

In response to increased speculation and a media report from Korea regarding potential sale talks, Topgolf Callaway reiterated its policy of not commenting on market rumors. A spokesperson stated, “While it is our long-standing practice not to respond to market rumors and speculation, in light of today’s unusual market activity, coupled with a recent media report originating in Korea regarding discussions of a potential sale of the company or its golf equipment business, we confirm that we are not aware of any such discussions.” The company indicated it would not provide further updates unless the situation changes.

Meanwhile, Phil Mickelson remains hopeful about the prospect, sharing his support on social media: “I haven’t heard anything about this, but what a great idea, and I pray this happens.”