TITLEIST BID

Now that Fortune Brands Inc is considering selling off their non beverage brands including Acushnet.

Should Golf Refugees bid for Titleist? ‘Are you joking’ I hear you cry? Well yes and no.

For example, remember when the American Glazer family bought Manchester United Football club, they did so by borrowing the funds and indebting the once debt free club with a massive £700 million loan. Resulting in annual interest repayments of £50 million paid from operating profits. Naturally footy (soccer) fans have seen a substantial rise in ticket prices and a lack of investment in the transfer market for new signings. The Glazer’s also take a hefty management fee for running Manchester United FC. So they are existing business models in place for take-overs from smaller brands.

If Golf Refugees could raise the necessary funds for a successful Titleist bid, annual interest payments to service the loans would again come from operating profits.

The easiest way to increase profits for any business is to reduce expenditure and increase prices. Golf Refugees would seek substantial operating savings at Titleist and increase prices for the No. 1 golf ball in golf.

Wally and I, though he'd have to take a pay cut. Happy days.

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