Loose Ends

It's a slow week, so I'm hoping you're not the blame the messenger type....

Do Tell - But this click-bait is tailor made TaylorMade for your humble blogger:

Everything you need to know about Vijay Singh v. the PGA Tour (but were afraid to ask)

I wasn't afraid, but whatcha got?

Whether Singh used the spray to treat injury or build muscle—and whether the spray actually worked for its intended purpose—weren’t at issue. What mattered to the PGA

Tour was that the spray contained a prohibited substance, Insulin-like Growth Factor-1—better known as IGF-1. Still, Singh had reason to believe that a public disclosure of using deer antler spray wouldn’t disrupt his career. He knew that Mark Calcavecchia admitted to using the spray a couple of years earlier and wasn’t punished. Singh also understood that many other golfers used deer antler spray and none of them were punished.

The PGA Tour saw things differently, suspending Singh for 90 days. The PGA Tour reasoned that Singh, like other golfers, contractually agreed to follow the PGA Tour’s anti-doping program manual. Singh’s admission, the PGA Tour observed, proved that he violated the manual. As to other golfers who used the spray, the PGA Tour stressed that none of them used the spray while playing in PGA Tour tournaments. The PGA Tour insisted that it only punished golfers who use the spray while competing in PGA Tour events.

Seriously?  You used the stuff because it did so much for Calc?  But at the risk of siding with Veej, that "in competition" distinction seems kinda flimsy, no?  Players in other sports have been known to take PED's specifically to recover from injuries.  If a banned substance is used to enhance training and practice, that affects the actual competition.

Singh was outraged, noting that the bottle didn’t list IGF-1 and that a lab failed to conclude IGF-1 was an active substance. Singh exercised his right to appeal the suspension, but the appeal itself seemed to elevate his penalty: while an appeal would toll the suspension until after the appeal was heard, any money earned during the appeal would be placed in escrow. If Singh lost the appeal, the escrowed money would be forfeited and Singh would then serve the appeal—meaning he would lose what he would have earned during those 90 days plus money he actually earned during the appeal process.

The four years of motion practice has limited the issues to be tried:

In assessing the competing arguments of Singh and the PGA Tour, Judge Bransten found that certain parts of Singh’s lawsuit remain debatable and arethus appropriate for jurors’ review. This is true, Judge Bransten reasoned, on the question of whether the PGA Tour acted in bad faith by failing to consult with WADA on deer antler spray before punishing Singh. Judge Bransten also found questions remain as to whether the PGA Tour’s public discussion of the spray breached a covenant of good faith and caused damage to Singh. More favorably for the PGA Tour, however, Judge Bransten granted summary judgment on parts of the lawsuit. One key issue that has been dismissed pursuant to Judge Bransten’s order concerns Singh’s conversion argument: Judge Bransten agreed with the PGA Tour that since Singh assented to the PGA Tour placing his money in escrow while he appealed, the PGA Tour acted lawfully in placing Singh’s money in escrow.

I've been a tad giddy over this lawsuit for the four years, way out of proportion to the good it might do.  The Tour's opaque disciplinary processes are not sustainable, and this action at least offered the possibility of some disinfecting sunlight.  As a bonus, it's the legal equivalent of the Iran-Iraq war....  and Kissinger was wrong, they both did lose.

So how might this play out?

Unless the PGA Tour offers Singh an amount of money in a settlement offer that convinces him to drop the remainder of his case, PGA Tour officials can expect to testify before New York jurors at some point in the future. While under cross examination, they may be asked difficult questions by Singh’s attorney, Peter Ginsberg, about their drug testing policies and procedures and how they collect and share information.

The former seems unlikely, and the latter will depend upon the judge allowing such questioning....  But, let's hope Mr. Ginsberg has game....

For his part, Singh would also assume some risk by participating in a trial. For one, he could lose the trial and gain nothing from four years of litigation except legal bills. Second, golf fans who read about Singh’s trial testimony would be reminded of the allegations against him. Such reminders might themselves damage his reputation. Then again, Singh could persuasively testify and win the trial, which would enhance his reputation and financially enrich him, too

Have you met Vijay?  That last bit seems.....errrr.....speculative?

Exit question:  Does Veej wear his Hopkins visor on the witness stand?

Colonialism -  Fort Worth is prepared to welcome back wayward son Phil Mickelson, who hasn't played the event since 2010.  Though this welcome this may deter future visits:

“With the (course) redesign, I’m afraid I won’t be playing it (Colonial) anymore,” Phil

said in 2011. “It doesn’t give me a power advantage. I know all the shotmakers will be there every year. But I don’t see any of the long hitters playing there anymore. There’s no decision making now. It’s all irons, irons, irons.” 

It was a tee-shot blast at course designer Keith Foster, and a tone-deaf comment about his own game. Phil sounded like a coward. 

Most (all?) of the tournament directors and club members were furious and insulted. Phil wanted to play tournaments where he could birdie a Par 5. Colonial wanted PGAers who at least expressed some degree of gratitude for their hospitality, which in Phil’s case was generously extensive. 

By 2011, the happily married couple only shared mutual middle fingers.

Happily married couple?  A coward?  Wowser, I know things have gotten a tad separate in the media world, but if this guy has a byline I'm hoping for more shrinkage.

Do read the rest of the piece for your morning laugh, it'll be good as you've seemed a bit tense lately.  This piece should be used in teaching journalism, as it's a textbook example of burying the lede.

deep in the piece you learn that Phil was sponsored by Crowne Plaza, the former sponsor of the event.  Yes, you play in the event sponsored by the guys writing you checks....  Because it wasn't a happy marriage, it was.....wait for it...  a business transaction.

Poor Mac Engel, life must be constantly disillusioning for him....

Short Stuff - Life goes in cycles, and thanks to Mike Keiser and others (Including Tiger), short course are now a thing, including at this place:

It's a great idea, though it seems awfully close to the finishing hole on No. 2.... But combined with the Thistle Dhu putting green there will be no shortage of drinking games available for visitors...

Equipment Musings - What's in your wallet bag?  More importantly, why is it there?  I'm not exactly sure where I'm going with this, but it'll be fascinating as always.... at least for those easily amused.

Matt Adams did a segment on Golf Channel on Rory's signing with TaylorMade that featured this poll of his Twitter followers:

Let's agree that if you follow Matt on Twitter, you likely have sleep issues....  Sorry Matt, we kid because we love....  The point being that this is a poll among core golf fans, not random folks off the street.

But does the fact that Rory/DJ?Sergio/Random Tour Rabbit plays a certain club affect your purchasing decisions?  I'm gonna say no, and I'm gonna say it with some attitude.  You'd be pretty foolish to let a guy with 25 mph more club speed affect your game....

But then let's turn it around and presume that TaylorMade and Callaway aren't run by idiots.....  So, what is it that they think they're getting for their large checks?  

Shall we take a detour to the Acushnet S-1?  

I know that will be difficult to read, but click through and go to page 16 if you want to follow along at home.  Acushnet is the parent company of Titleist/FootJoy and the S-1 was filed in conjunction with its recent IPO.  It's therefore the best picture we have of the economics of the golf equipment business....

We see a consistent 50% gross margin, fairly strong for a competitive manufacturing company.  We also know that the Titleist golf ball business represents about a third of their revenue, and we assume that this skews their margins higher.  The number that shocks is the selling expenses, almost 40% of revenues.... Think about it, selling expenses, including the player's contracts, are only slightly less than the cost of producing the products.  You don't see that every day...

But again, Titleist has a reputation of not paying the really high sponsorship numbers... they let Tiger and Rory go early in their careers to chase the big money....  So, wouldn't we assume that TaylorMade's selling expenses blow by Acushnet's?

With lower gross margins than Titleist, let's think about Rory's reported $10 million contract to play TaylorMade.  We could spend all day dissecting the difference between average and marginal costs, but let's just assume that the next driver sold by TaylorMade drops 25% of the wholesale price to their bottom line.  Can having Rory in the fold add $40 million in wholesale revenue to the company?

On the one hand, it's not a number so large that it blows us away....  On the other hand, with DJ, JD, Sergio and Justin Rose already in the fold, is there any increased brand awareness to be had?  It's an interesting subject with no easy answer, as who wouldn't want any of those guys playing their products.  On the other hand, from 30,000 feet it looks like an industry with a death wish....

I'll also just add that the equipment companies also sponsor club pros, a different model for sure.  When I got to Willow Ridge, both of the male teaching pros were TaylorMade guys, and the company got great value from those rather minor line items in the budget.  Every bag at the club was full of TM sticks....  the obvious problem is that it's one club, and hard to replicate widely.

A subject of interest to me that I'd blog more often, if only the information was readily available.

Enjoy the weekend.