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CALLAWAY FEELS SINGLED OUT; ARNIE SIGNS ON TO PLAY RULE 35

          The USGA's U.S. Open contract with NBC, which the net
     says "permits no advertising on equipment that does not
     conform to the specifications" of the organization, has
     "upset" Callaway Golf officials, according to Thomas Bonk of
     the L.A. TIMES, who reported that Callaway's ERC driver,
     "one of 15" clubs on the USGA's "nonconforming list," was
     "specifically mentioned in an internal NBC memo stating that
     no advertising be accepted" on the product.  Callaway Senior
     VP & General Counsel Steve McCracken said that the company
     "believes it is being singled out" by the USGA.  McCracken:
     "The USGA has gone out of its way to attack the ERC driver. 
     This could come to a point where we would have to take some
     course of action."  NBC is in the first year of a new deal
     with the USGA, and NBC Sports VP/Communications Kevin
     Sullivan said that the net's "prior contract also included a
     clause concerning nonconforming equipment."  USGA Exec Dir
     David Fay added that there is "no intent to single out"
     Callaway (L.A. TIMES, 6/18).
          CADILLACS AND CALLAWAY: Arnold Palmer has inked a deal
     with Callaway through 2012 to endorse and play the company's
     Rule 35 golf ball (Callaway).

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