We continue to closely track the latest happenings in the golf world, though it is more about the tournaments, leaderboards and new courses than the business and financial part of the Industry. It goes without saying that golf is a very narrow niche industry, however it is one of the most lucrative as it attracts the high-income demographic. Due to this demographic most companies spend huge advertising dollars in this industry. The money spinning golf industry is not just about the big brands like Callaway, Nike, Adidas, Taylormade and Aldila; there are several promising start-ups, new courses, hospitality and other related companies.
The real question is, will this industry make sense for big time investors? The highly reputed and fast growing Hartford Group International are looking at the prospects of investing in this Industry.
Hartford Group International’s Investment Plans in Golf:
The Hartford Group International is predominantly a financial management company with trading in stocks and commodities as their major bread winner. However now they are rapidly diversifying in to other areas, one of which is investing in the golf industry.
The research team at Hartford is well aware of the ground realities in the golf industry. They are completely aware of the fact that the golden days of big golf growth is gone. According to their research team the growth story of golf industry is very much hyped. In the last decade (between 2002 to 2007) the golf industry was booming, with an annual revenue of $2.9 billion during 2007. However post economic recession the figure took a beating and the annual revenue was just $ 2.2 billion for the year 2011. Even the number of failed golf courses increased tremendously during that phase.
There is some bright side to this scenario as the recession made most companies more cost effective and also helped several efficient start-ups to grow due to the vacuum created by closure of sick golf companies. The number of sick golf courses and resorts also tapered off, which presents a great potential for investing in efficient golf companies at attractive rates. Despite all these positives the banks in the US are not lending for commercial properties. However Hartford’s strength in Asian region will help them to raise the required capital.
Proper Market Research:
According to Hartford Group International, research is of extreme importance as several golf course operators lack the basic data about their customer base despite having good course management expertise. Without complete data it is difficult to fix an appropriate price for the course. The group with their excellent research team is looking to overcome this issue by doing an independent audit.