Welcome again, MyGolfSpy compatriots, to a different version of Historical past’s Mysteries. Submitted on your approval is a Twilight Zone-worthy story of an underfunded golf model with a novel, patented expertise. It was rescued by an entrepreneur with deep pockets, large goals and excessive hopes, solely to crash and burn three years later.
That model is again with putters that shocked us all on this 12 months’s MyGolfSpy testing.
This, mates, is the story of TearDrop Putters.
Historical past’s Mysteries: TearDrop Putters
The science of placing hasn’t modified a lot over the generations. You roll a spherical ball right into a spherical gap on flat floor with a flat stick. It’s a easy activity however, yearly, somebody tries to invent a greater instrument for the job.
There have been putters that seem like birdhouses, hammers, xylophones and even the Starship Enterprise. For each PING Anser, Odyssey 2-Ball or TaylorMade Spider, there are hundreds extra that make you surprise if the designer might move a drug take a look at.
Fred Hochman’s TearDrop putter with its patented rolled face was someplace within the center. It might have been a one-hit surprise however that face smacked the putter institution proper within the kisser.
Hochman based TearDrop in 1992 in Hilton Head, S.C. He believed a rounded face would cut back, if not forestall, bouncing and skidding simply after affect. The end result could be a smoother, extra correct roll.
A 12 months later, Hochman had seven totally different rolled-face fashions in his steady and was gaining traction on the professional degree. A rising legion of gamers on the PGA, Senior and NIKE excursions have been gaming TearDrops, despite the fact that Hochman couldn’t pay them. By 1995, simply three years after the corporate’s founding, TearDrop ranked within the high 10 in victories throughout all excursions.
TearDrop was additionally establishing a beachhead with customers. Gross sales for the fledgling firm reached $780,000 in ’94 and topped $1 million in ’95. The underside-line ink, nevertheless, was a deep, darkish purple.
Hochman was operating out of cash and wanted a white knight.
Boy, did he get one.
Meet Rudy Slucker, Entrepreneur
Rudy Slucker was, in 1995, a really wealthy man.
He was additionally a really bored man. As destiny would have it, he was additionally Hochman’s neighbor.
Slucker’s story started in 1974 on the age of 24. Recent out of faculty, Slucker went to work for the Atlas Group, a New Jersey-based importer/distributor of {hardware} and hand instruments. {Hardware} suited Slucker and he rose to the purpose the place he’d purchase the corporate outright. Underneath his steering, gross sales grew from $1.2 million in ’74 to over $50 million by 1987.
Slucker was the quintessential wheeler-dealer. He would purchase and promote companies seemingly at whim. Through the years, he owned New York’s Seaside Theatre, numerous meals chains and health golf equipment and even just a few minor-league baseball and hockey groups.
Slucker made a lot cash that in 1990, at age 40, he bought his pursuits in Atlas and retired to Hilton Head. It was there he took up golf and have become quick mates with Hochman.
By 1996, nevertheless, Hochman was in bother. TearDrop was affected by the fast-growth blues. Regardless that gross sales topped $1 million, the corporate discovered itself $1.5 million in debt making an attempt to finance that progress. Hochman wanted money or he’d should shut down.
Fortuitously, he knew a man.
Slucker had already invested in TearDrop. When Hochman informed him what he was up towards, the Jersey wheeler-dealer didn’t hesitate.
“It didn’t take me lengthy to inform Fred I might purchase,” Slucker informed Interview journal. “I assumed I might make one thing out of it. And, moreover, I wanted one thing to do.”
TearDrop takes off
Slucker didn’t waste time. He pumped $1 million into TearDrop in September 1996. That December, he launched an IPO that raised one other $5.5 million. Slucker used that cash to repay TearDrop’s debt and to fund an bold turnaround technique.
The mid-Nineteen Nineties have been a tumultuous period in golf tools. By 1996, Callaway, TaylorMade, COBRA and PING managed 75 p.c of the market. Callaway was a $600-million monster whereas Acushnet purchased COBRA for an astounding $700 million. Weeks later, funding big KKR purchased Spalding for an much more astounding $1 billion.
The general market, nevertheless, was comparatively flat. Whereas the Massive 4 grew, trade stalwarts Wilson, MacGregor, Ram and Hogan went backward. Lynx was teetering and even an all-star possession group that includes Fred {Couples}, Jim Nantz, Jack Nicholson, Clint Eastwood and Sean Connery couldn’t put it aside from chapter.
In opposition to that backdrop, Slucker set about constructing a model.
He began with TearDrop infomercials that includes PGA Tour professional Bret Ogle and baseball Corridor of Famer Jim Palmer. Subsequent was TearDrop Putt of the Week on Golf Channel, a showcase of the very best putts throughout all golf excursions. The model constructing was working, as Q1 1997 gross sales greater than doubled. Model constructing, nevertheless, isn’t low-cost. Regardless of the large bounce in gross sales, Q1 losses approached $700,000, practically triple that of the 12 months earlier than.
Undeterred, Slucker saved pushing. TearDrop sponsored a number of regional and developmental golf excursions. In September, he purchased Golf Promotions, LLC, which owned and promoted excursions throughout North America.
That, nevertheless, was little one’s play in contrast with what was coming.
The spending spree continues
By 1997, Tommy Armour was reeling. Its iconic 845s irons have been an amazing success however the firm by no means did give you a worthy successor. Moreover, Tommy Armour had been purchased and bought thrice because the 845s launch and was coming off a monumental flop, the Ti-100 irons.
Proprietor U.S. Industries was two years into its stewardship and was already seeking to get out. It first bought off Odyssey putters to Callaway for $130 million, hoping Callaway would take Tommy Armour as a part of the deal. Callaway politely declined. By early November, possession let it’s recognized Tommy Armour could possibly be had for the very best cheap provide.
Two weeks later, Slucker pounced, shopping for the model for $25 million.
He wasn’t completed.
Two weeks later, Slucker purchased one other Chicago-based icon, Ram Golf, from the Hansberger brothers for $10 million in money and inventory.
Slucker’s new firms have been actually prestigious. They have been additionally on shaky floor, dropping $40 million mixed in 1996. Slucker’s confidence, nevertheless, by no means wavered.
“I purchased two firms with nice names however which have been hammered to demise,” Slucker informed the Chicago Tribune. “They don’t assume I can get it finished. Properly, these individuals don’t know me. I wouldn’t be in it if I didn’t assume I might get it finished.”
In its evaluation, the Tribune put it bluntly. “Both Slucker will splash down quicker than a skulled 7-iron right into a pond, or he’ll change the face of the golf trade. He doesn’t need any in-between.”
Ely Callaway was much more blunt.
“If he can do one thing with these firms, extra energy to him. However neither of them has finished it so far.”
“Movin’ on up ….”
Slucker saved the tempo up in 1998. He first consolidated his new TearDrop empire on the Tommy Armour headquarters in Morton Grove, Unwell., after which signed main winners Steve Jones and Fred {Couples} to endorsement offers. He tried to purchase Lynx out of chapter that 12 months however his money and inventory provide was bested by Golfsmith’s $11-million money bid.
The Slucker magic gave the impression to be working. TearDrop posted its first-ever worthwhile quarter in Q1, with gross sales of $25 million. Wall Avenue was impressed, too. TearDrop inventory soared by 500 p.c as Slucker saved wheeling and dealing. He purchased extra mini-tours and have become the unique North American distributor for Genuin Golf, a high-end European shoe and attire model.
Late in ’98, he would signal a landmark take care of Worth America to grow to be the primary main model to promote its golf equipment on this new international phenomenon referred to as “the web.”
By the fiscal year-end, TearDrop topped $60 million in gross sales, fueled by the Ram and Tommy Armour acquisitions. General, nevertheless, the golf trade was sluggish in 1998 and practically 25 p.c of TearDrop’s progress got here at discounted costs by Sam’s Membership shops. Regardless of top-line progress, the underside line was nonetheless purple, with losses reported at $43 million.
Regardless of that, Slucker was predicting progress and profitability for 1999. That 12 months, the annual Robb Report “Greatest Of” concern named TearDrop the very best putter and Genuin the very best golf footwear. On the floor, all the correct substances have been in place. Nonetheless, regardless of market share success (fourth in putters, fifth in irons), TearDrop remained extremely leveraged.
In brief, TearDrop was a home of playing cards.
Lonely teardrops …
Slucker predicted $90 million in gross sales for 1999. By mid-year, nevertheless, he was compelled to revise that projection to $65 million to $70 million. Wall Avenue hates downward projections and the market reacted predictably, with inventory costs taking a tumble. TearDrop wanted money and that fall secured $30 million value of credit score from Textron, the proprietor of E-Z-GO golf carts.
“The 12 months 2000 has the potential to be our breakout 12 months,” the ever-optimistic Slucker proclaimed on the time. In actuality, TearDrop was rearranging the proverbial deck chairs on the Titanic.
Sluggish gross sales prompted administration to make a collection of dangerous choices, which solely pushed TearDrop additional right into a demise spiral. The corporate slashed R&D and advertising prices whereas chopping promoting costs to make top-line gross sales look higher. In any enterprise, that’s a nasty mixture.
By the autumn of 2000, Crain’s Chicago Enterprise Overview issued a dire warning. “The corporate is extremely leveraged now in a particularly aggressive trade. It may possibly’t afford to have too many issues to go improper … they’re strolling a tightrope.”
Slucker could have been a enterprise daredevil however he was no Flying Wallenda. TearDrop inventory, which as soon as peaked at over $14, was now value 9 cents per share. The tightrope was getting slipperier.
Corporations can survive slumps however when falling gross margins mix with rising gross sales volumes, it’s time to circle the wagons. Shedding cash on every product you promote is dangerous. Slicing the worth to promote extra solely makes issues worse. Losses go into overdrive and also you merely run out of money.
Slucker fell off the tightrope and his home of playing cards lastly collapsed in December 2000 when TearDrop filed for chapter.
Gen-X and the possession follies
Earlier that fall, Slucker had a white knight of his personal on the road. Gen-X, a Canadian scooter and snowboard firm, signed a letter of intent to purchase Teardrop in October. Nonetheless, it withdrew the provide after TearDrop reported horrendous Q3 financials. Gen-X noticed the Chapter 11 handwriting on the wall and figured it might scoop up TearDrop for pennies on the greenback quickly sufficient.
Which is precisely what occurred.
Whereas different suitors (Golfsmith, Adams) needed components of the now-bankrupt TearDrop carcass, Gen-X was keen to purchase the entire thing. For $18 million, it picked up all $ 31 million value of TearDrop’s belongings whereas staying away from its money owed and liens.
For his half, Slucker netted sufficient money to repay his private mortgage ensures. Different collectors, nevertheless, have been left excessive and dry. Amongst these hardest hit have been Fred {Couples} (for product endorsements), Pebble Seaside, True Mood, Forbes journal and The New York Instances.
TearDrop staff have been the largest losers. Most have been laid off and their retirement plans have been full of now nugatory TearDrop inventory.
Gen-X had no background in golf nevertheless it made a extremely good first transfer. It teamed with Ralph Maltby and Golfworks to design and construct new golf equipment, particularly a brand new line of Tommy Armour 845s irons.
It labored. 2002 was one other flat 12 months for golf however the Gen-X golf division posted a outstanding 40-percent improve in gross sales, following a 12 months by which your entire firm posted a $5.5 million revenue. Due to this fact it was a little bit of a shock when Gen-X bought out that summer time to Huffy, the Ohio-based bicycle and sporting items firm, for $19 million in money and 5 million shares of inventory. This was solely 18 months after shopping for TearDrop out of chapter for $18 million.
What on earth was Huffy considering?
Sadly for TearDrop, Huffy was a monetary catastrophe space in 2002. Management clearly thought shopping for Gen-X was a good suggestion, however on reflection, it’s arduous to fathom. Huffy posted a $1.4 million loss in 2002, adopted by a $7.3 loss a 12 months later. The ship was sinking in 2004. That March Huffy bought its Gen-X acquisition, apart from the golf division, again to the unique Gen-X possession. Layoffs quickly adopted, and that summer time Huffy inventory costs bottomed out at 59 cents per share. By the autumn, Huffy filed for Chapter 11.
A brand new, leaner Huffy emerged from chapter a 12 months later with a court-ordered reorganization plan. That plan included promoting off the golf division by 2007. That January, Hilco Client Capital Group, which already owned misplaced manufacturers resembling Halston, Linens ‘n Issues and Polaroid, took over the TearDrop steady. It instantly entered into an unique retail take care of sporting items big Sports activities Authority.
In 2010, Sports activities Authority purchased the manufacturers outright. They remained low-quality retailer manufacturers till March 2016 when Sports activities Authority filed for chapter.
Three months later, DICK’S purchased all of Sports activities Authority’s manufacturers and mental property, together with TearDrop, Ram, Zebra and Tommy Armour, for $15 million.
DICK’S turned Tommy Armour into its retailer model quickly after. By 2020, DICK’S bought the TearDrop, Ram, Zebra and the newly acquired MacGregor manufacturers to Nevada golf entrepreneur Simon Millington.
Millington instantly put plans in movement to carry every model again. These plans have been accomplished this spring, with TearDrop’s return to the putter market.
Historical past’s Mysteries: A postscript
Millington tells MyGolfSpy that, earlier than relaunching TearDrop, he needed to verify his crew understood what that patented Roll-Face Know-how might do.
“We began by shopping for as most of the unique fashions as we might. We examined them to see if the rolled face genuinely did skid much less and if high spin did get on the ball faster. Our assessments confirmed it completely did.”
Millington collaborated with famend putter designer Austie Rollinson on the brand new TearDrops. Rollinson had spent the earlier 20 years with Odyssey and labored with Millington on a number of merchandise earlier than taking his present place as Senior Director of Putter R&D at Acushnet.
The new TearDrop lineup options an Anser-style blade, a small rounded mallet and a bigger, Spider-ish mallet. They’re multi-material (CNC-milled carbon metal and aluminum), with TearDrop’s basic rolled face. The TearDrop TD-1 blade completed tied for third in efficiency from 5 toes and seventh total in this 12 months’s MyGolfSpy testing. It beat out entries from TaylorMade, Mizuno, Scotty Cameron and PING.
TearDrop’s Roll-Face expertise continues to be Hochman’s patent. It’s designed to create preferrred launch and spin situations and get the ball rolling ahead rapidly with as little skidding as doable. The result’s a constant roll no matter the place on the face you strike the ball.
Thirty years later, our testing exhibits Hochman’s one-hit surprise nonetheless rolls true.
We hope you loved this version of Historical past’s Mysteries and we’d like to know: Did you ever recreation a TearDrop? Please share your recollections under.
The put up Historical past’s Mysteries: The Unusual Story of TearDrop Putters appeared first on MyGolfSpy.
