Given their direction to diversify over the last number of years, and their acquisition of a social golf platform like TopGolf, it comes to little surprise that Callaway Golf has taken a stake in an indoor golf operation.
The company announced this week that they have completed a (USD) $30 million minority investment in Five Iron Golf. For those not familiar, the company is privately owned and offers urban indoor golf and entertainment facilities. At those facilities they host virtual golf, simulator rentals, golf lessons, custom club fittings, social events, and offer a food and beverage menu.
“We are pleased to announce our partnership with Five Iron Golf and are excited to support the continued growth of off-course golf and entertainment,” commented Chip Brewer, President and Chief Executive Officer of Callaway in a release. “Five Iron Golf has built a strong brand and leadership position in the evolving indoor golf market by creating technology-driven, eye-catching venues appealing to avid golfers, pure entertainment seekers, and everyone in between. This innovative business aligns with Callaway’s belief that the future of golf will be more accessible and inclusive. The partnership includes a non-exclusive marketing agreement that provides Callaway the ability to continue to develop relationships with golfers wherever they engage with the sport and a valuable opportunity for strategic collaboration that will benefit both brands.”
“In building our brand, we have always emphasized working with partners who identify with our mission of spreading love of golf through meaningful, customizable experiences,” said Jared Solomon, Chief Executive Officer of Five Iron Golf. “We are energized by Callaway’s approach to golf and entertainment and are excited for the many opportunities to come.” Five Iron Golf President & Chief Legal Officer Henry Ciocca, who helped spearhead the transaction, added, “Working with Callaway and leveraging its position as an undisputed global leader in golf will have immeasurable benefits for Five Iron Golf as we continue to execute our strategic growth plans and vision both domestically and abroad.”
Five Iron Golf was co-founded in 2017 by Jared Solomon, Nora Dunnan, Mike Doyle, and Katherine Solomon in New York City and has rapidly expanded to nine domestic venue locations operating in seven cities and one international franchise venue location in Singapore. Seven additional venue locations are currently under development, including Chicago’s The Loop neighborhood and Seattle’s Capitol Hill neighborhood, which are projected to open in December 2021 and January 2022, respectively.