From a single London driving range pioneering virtual golf games, Topgolf has rapidly grown into an industry trailblazer thanks to investments and eventual full ownership by Callaway Golf.

This article explores the origins, exponential growth, and future potential of Topgolf as acquired by its parent company and majority owner Callaway Golf.

Let’s start from the beginning and dive into the history behind the Topgolf brand and how Callaway Golf Company propelled their rapid rise.

Origins As A Driving Range Company

Topgolf originally started out as a technology-enabled driving range company.

It was founded in the year 2000 in Watford, United Kingdom by Steve Jolliffe and his brother Dave Jolliffe.

The Jolliffe brothers wanted to make the game of golf more fun and accessible to people through interactive games and entertainment at the driving range.

They opened the first Topgolf driving range facility in the UK, featuring microchipped golf balls and computerized scoring systems to track gameplay and accuracy.

This allowed customers to play different target practice games and instantly receive their scores.

The focus was on bringing a social and competitive aspect to a driving range outing.

Groups could reserve hitting bays with comfortable lounge seating, order food and drinks, listen to music, and play a variety of point-scoring golf games.

The high-tech twist on traditional driving ranges drew in new demographics beyond just golfers looking to practice.

Topgolf became a popular entertainment destination and the company soon started expanding.

Expansion In The United States

In the year 2005, Topgolf opened its first United States location in Alexandria, Virginia after gaining popularity in the UK.

Topgolf soon realized there was tremendous demand for their unique brand of sports entertainment in the large US market.

The company initially focused on rapid growth across the US through franchising of their concept as well as developing company-owned and operated locations.

Topgolf signed deals with franchise partners to open new locations around the United States.

This allowed the company to grow quickly without investing all of the capital themselves.

The first franchised Topgolf opened in 2006 in Chicago, Illinois.

Alongside franchising, Topgolf developed corporately-owned venues in prime locations and markets during the same period.

They used this two-pronged expansion strategy across the country.

Now over fifteen years later since first entering the US, Topgolf has over 60 locations spread across the United States.

The brand has become one of the fastest growing entertainment concepts attracting everyone from professional golfers to young families and non-golfers wanting to try out the unique experience.

Majority Acquisition By Callaway Golf Company

In the year 2006, global sporting equipment and apparel brand Callaway Golf Company purchased a fourteen and a half percent financial stake in Topgolf.

Callaway recognized the potential for growth with Topgolf’s combination of sports and entertainment.

As part of the deal, Callaway and Topgolf also agreed to strategic business opportunities together to grow both brands.

Over the following eleven years, Callaway continued increasing their ownership share in the Topgolf company as it rapidly expanded in America and internationally.

By the year 2017, Callaway Golf had acquired over fifty percent ownership of Topgolf to become the majority stakeholder and parent company.

Finally, in March 2021, Callaway Golf Company announced the complete acquisition of the remaining Topgolf ownership shares.

They reached an agreement on an all-stock merger deal valued at approximately two billion dollars.

This brought the high-tech sports entertainment brand Topgolf fully under the Callaway Golf umbrella along with all of Callaway’s equipment and apparel brands.

Topgolf Under Callaway Ownership

With full ownership of Topgolf secured, Callaway Golf made it clear they have plans to grow Topgolf into a six billion dollar company in the coming years under their ownership.

Callaway used 2021 as a launching point for further Topgolf expansion with post-merger synergies between the two brands.

In 2022, eight brand new Topgolf venue locations were opened across the United States.

Callaway executives say they plan to open several new Topgolf locations annually moving forward as well as pushing international growth.

Furthermore, Callaway is already taking advantage of promotional and sales synergies between the golf equipment brand and Topgolf entertainment by featuring Callaway golf gear and apparel in Topgolf venues.

More brand integrations are expected as Callaway further establishes itself as the full owners of Topgolf.

Besides United States growth, global expansion initiatives are also underway for new Topgolf locations in Europe, Asia, and the Middle East now with Callaway’s ownership influence.

Leveraging Callaway’s strong international infrastructure should assist in accelerating worldwide growth plans for the Topgolf brand.

The Future As A Public Company

As part of Callaway Golf Company’s acquisition deal in 2021, Topgolf returned to being a publicly traded company after over a decade of private ownership.

Topgolf amalgamated with Callaway Golf, which has been a publicly traded corporation since the 1990s.

This set Topgolf up to have a renewed focus on expansion and innovation as a public company accountable to shareholders while still being mostly owned by Callaway.

The merged Callaway and Topgolf entity trades on the New York Stock Exchange under the ticker symbol “MODG” for all shareholders.

Topgolf is poised to keep flourishing in the public markets with Callaway’s backing.

their unique positioning at the intersection of sports, media, and entertainment combined with proven growth sets up Topgolf for success as a public corporation once again.

Being a public company allows them to raise funds more easily to finance global growth initiatives and new technology ventures.

With Callaway directing strategy, Topgolf is well-positioned to keep its strong momentum going in existing markets while expanding worldwide thanks to easier access to capital.

As a public company Topgolf also continues striving to create innovative new interactive experiences to remain an industry leader in golf entertainment as well as in the out-of-home sports technology space overall.

Conclusion

Topgolf has grown from a small UK startup disrupting the traditional driving range model into a global sports entertainment phenomenon under the ownership and guidance of Callaway Golf Company.

With continued expansion plans and public company status, Topgolf is positioned to keep innovating at the intersection of sports media, gaming, and entertainment.