CA-based Taylor Made "announced a major restructuring"
Wednesday -- the merger of Taylor Made and adidas Golf USA -
- which "set the golf industry abuzz, and could launch a
court battle" with Callaway, according to Mike Freeman of
the SAN DIEGO UNION-TRIBUNE. adidas-Salomon, parent of
Taylor Made and adidas Golf, "hopes to create a golf
juggernaut" with the merger that includes Taylor Made clubs
and balls, along with adidas footwear, apparel and
accessories. Taylor Made hired Mark King, formerly
Callaway's golf ball division VP/Sales, as its new
President. But Callaway VP/Advertising & PR Larry Dorman
said that "employees sign what amounts to a noncompete
clause in their contracts" and that Callaway's lawyers are
"examining legal remedies" to prevent King from working for
Taylor Made. Dorman: "Mark was privy to a great deal of
proprietary information." Dorman added that King "has 14
months remaining" on his employment contract with Callaway.
But Chuck Yash, who Callaway just named as its President,
was hired away from Taylor Made in May '96. Callaway
"contends Yash did not have an employment contract with
Taylor Made. The companies were able to negotiate a
settlement and avoid legal action" (UNION-TRIBUNE, 8/19).
