Srixon's Big Deal

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Hey Golfers -

Brooks Koepka is no longer an equipment free agent. Brooks signed a deal with Srixon a couple of weeks ago; the financial details of the contract were not disclosed. The agreement with Srixon includes the driver, irons, wedges, ball, and bag. The new equipment went into action against Bryson DeChambeau at The Match; here is what Brooks is playing.

• ZX7 Irons

• ZX5 Driver

• Cleveland RTX Wedges

• Z-Star Prototype Ball

Brooks has not had an equipment deal since Nike sunsetted their equipment in 2016, an unusual move for a PGA Tour star. It is believed that Brooks could command anywhere between $3 million - $7 million per year for an equipment contract. 

For reference, Rory McIlory was also affected by the Nike move. Rory signed a deal with TaylorMade in 2017 worth $100 million over ten years. Rory’s contract with TaylorMade is for the whole bag of equipment, ball, and bag. Very similar to Brooks’ contract with Srixon.

At 31, Brooks ranks 26th all-time on the PGA Tour career money list with $36.7 million in earnings. His career earnings trajectory is pretty wild.

Brooks is very attractive to receive lucrative endorsements for his results on the golf course and off the golf course.

• 8 PGA Tour wins

• 7 International wins

• 4 Major Championship wins

• 3 Ryder Cup appearances

• 530 thousand followers on Twitter

• 1 million followers on Instagram

Srixon is a subsidiary of SRI Sports Limited, which is owned by Sumitomo Rubber Industries, a publically traded company in Japan. Sumitomo Rubber Industries is owned by Sumitomo Group. Still with me?

Sumitomo Rubber Industries created SRI Sports Limited in 2003 to compete in the sports space. Subsequently, SRI Sports Limited rolled out the Srixon brand. Interestingly, Srixon gets its name from the first three initials of Sumitomo Rubber Industries plus the word ON - meaning ‘onward’.

SRI Sports Limited is responsible for these golf brands:

• Srixon

• XXIO

• Cleveland

SRI Sports Limited acquired Cleveland Golf in 2007 for a reported $132.5 million from surf company, Quicksilver. Cleveland was founded in 1979 and bought and sold a few times until the SRI Sports Limited acquisition in 2007.

Why is any of this history important? The Srixon and Cleveland brands are backed by a major Japanese conglomerate that dates back to the early 1600s.

Sumitomo Rubber Industries disclosed financials in their sports segment, which includes SRI Sports Limited and other brands, most notably Dunlop. Here’s a five-year breakdown of their revenue.

Sumitomo Rubber Industries reported earnings a couple of months ago; the sports segment is having an incredible year compared to 2020. The first nine months of the year have recognized $673,789,400.00 in revenue, up 153% over 2020.

Srixon has endorsements with several professional golfers:

• 26 PGA Tour players

• 17 European Tour players

• 11 Champions Tour players

• 20 Korn Ferry Tour Players

• 6 LPGA Tour players

Srixon features four PGA Tour players on their website:

• Brooks Koepka

• Hideki Matsuyama

• Shane Lowry

• Cam Champ

These four players have six majors, 20 PGA Tour wins, and $90 million in career PGA Tour earnings. Very respectable.

The below chart shows PGA Tour career earnings.

Srixon signing Brooks Koepka was a massive win for Srixon. I am curious to see if they will sign additional professional golf stars in the coming months as they continue to grow their brands.

Have yourself a Monday, talk to you next week!

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