Sergio García Officially Signs Deal With Callaway, Extends With Adidas Apparel
Golfer Sergio García "signed a multiyear endorsement deal with Callaway to use its clubs and ball" after a 15-year run with TaylorMade, according to E. Michael Johnson of GOLF DIGEST. The announcement is "more of a formality than news" as García used an Odyssey putter and some Callaway clubs late last year. TaylorMade and García in November "mutually agreed to part ways." García will have a Callaway logo on "both sides of his hat while continuing to have an adidas logo on the front and on his apparel." The signing "makes sense for Callaway." Although the company "still has Phil Mickelson, the bulk of its notable tour staff are young up and comers." Garcia gives the company "not only additional star power, but a global icon as well" (GOLF DIGEST, 1/2). GOLF.com's Dylan Dethier reported adidas "extended its apparel and footwear contracts" with Garcia and Xander Schauffele and signed Tyrrell Hatton to a "multi-year deal as well." The trio "joins a strong roster of adidas golfers that includes World No. 1 Dustin Johnson, No. 4 Jon Rahm and No. 6 Justin Rose." Garcia has been with adidas since turning pro in '99 (GOLF.com, 1/2).
STRATEGIC INVESTMENT: CNBC's Dominic Chu said that he asked Callaway President & CEO Chip Brewer why getting García on board was so important. Chu: "He basically told me that Sergio signing is pretty much a continuation of Callaway's investment in all of their key Tour relationships." Chu added that Callaway has had this "strategy in place for a lot of years now." Chu: "It's helped fuel their brand value, their revenue growth." He said that Callaway believes García's switch to its brand "really captures kind of the consumer interest side of things." He added that Brewer "wants to see whether or not they can get something out of it." Chu: "[García's] decision to join the team at Callaway aligns with a lot of the market share trends they have seen over the years, so Chip was very high on this." Chu also touched on García's relationship with adidas, saying that adidas Golf President Jeff Lienhart "told us having Sergio wearing the three stripes is extremely important for his company." Chu: "It shows how much Sergio trusts the products" ("Morning Drive," Golf Channel, 1/3).