Adidas remains unsuccessful in its attempts to find a buyer for TaylorMade, and the clock on a potential sale may soon run out.
Adidas announced in May that it was “actively seeking” to sell its golf brands, led by TaylorMade and also including Ashworth and Adams. According to a New York Post report, the company still hasn’t found a suitor for TaylorMade and now faces mounting losses and increased competition.
Adidas reportedly pinned a $500 million price tag on the TaylorMade sale last year, but it now may need to take considerably less given the “threat” posed by Callaway’s receently-launched Epic driver and the fact that the three Adidas golf brands are losing $75-100 million per year according to the report.
Those figures have not been helped by the recent plight of Tiger Woods. TaylorMade made a big splash at last month’s PGA Merchandise Show by announcing a multi-year equipment endorsement deal with Woods, but he then missed the cut that same week at the Farmers Insurance Open and hasn’t been heard from since an abrupt withdrawal at the Omega Dubai Desert Classic.
Both world No. 1 Dustin Johnson and world No. 2 Jason Day are currently playing TaylorMade clubs, but the report indicates that Adidas may have only three months left to find a buyer. Otherwise, it may have to choose between keeping the brand in-house to reduce losses or following in the footsteps of Nike by shuttering a notable equipment brand.