Topgolf to open 10 new venues in 2022

Topgolf, a golf entertainment business owned by Callaway Golf, is projecting a big year in 2022 with 10 new venues planned to open.

DELRAY BEACH, Florida – When Callaway Golf and Topgolf merged in March 2021, Callaway bean counters estimated funding needs for its golf entertainment division to be approximately $325 million. As of year-end 2021, however, Callaway Chief Financial Officer Brian Lynch said Topgolf’s need for funding was “significantly lower’’ due to its faster than expected recovery and strong 2021 performance.

Topgolf had revenue of 1.088 billion –35 percent of Callaway’s 2021 revenue and contributed $58 million to Callaway’s earnings of $322 million.

“At this point, we estimate that Topgolf will need almost $200 million less funding than we originally anticipated,’’ Lynch said. “Going forward, we estimate Topgolf will only need incremental funding from Callaway of less than $70 million, which would be used for future venue growth.

Topgolf is already operating cash flow positive and we expect Topgolf to be able to fund its own growth and be cash — free cash flow positive in 2024. Since the merger, our leverage ratios have improved significantly, our net debt leverage ratio was 3.1 times at Dec. 31, 2021, compared to five times that at March 31, 2021.

At the end of 2021, Lynch said Callaway’s total debt was $1.4 billion, including venue financing obligations of $593 million related to the development of Topgolf venues. Callaway plans to open 10 Topgolf venues in 2022, including its first two in California – in El Segundo and Ontario. The El Segundo venue will include a 10-hole, lighted golf course.

For the full year of 2022, Lynch said Callaway expect revenue to be approximately $3.8 billion, compared to the $3.13 billion in 2020.

“Our full year 2022 net revenue estimate assumes continued positive demand for our golf equipment and soft goods segments, and no significant supply chain or retail shutdowns due to any COVID resurgence,’’ Lynch said. “It also assumes approximately $1.5 billion in net revenue from Topgolf for the year.’’

Steve “Spike” Pike is a lifelong journalist whose career includes covering Major League Baseball, the NFL and college basketball. For the past 26 years, Spike has been one of the more respected voices in the golf and travel industries, working for such publications as Golfweek, Golf World and Golf Digest for The New York Times Magazine Group. In 1998, Spike helped launch the web site for the PGA of America. As a freelance travel and golf writer, Spike’s travels have taken him around the world. He has played golf from Pebble Beach to St. Andrews, walked the Great Wall of China, climbed an active volcano in the Canary Islands, been on safari in South Africa and dived with sharks off Guadalupe, Baja California. He lives in Delray Beach, Fla, and can be reached at

Leave a Reply

Notify of