Despite Record Sales in ’01, Callaway Reports a 6 Percent Loss During the Third Quarter
San Diego’s men’s outdoor professional soccer team won’t be around next year, according to team management.
The San Diego Flash, which has been managed by the La Jolla Nomads since April, has folded again , but this time it’s said to be only temporary.
The Nomads, which runs a local youth soccer club, took over the team when its original backers called it quits after three years. The United Soccer League, based in Tampa, Fla., hired the Nomads to manage the team under the new name San Diego Football Club, and ate most of the operating expenses.
To bring the club back for another season, however, meant the Nomads would be on their own.
The organization had until Oct. 15 to raise the league’s $350,000 franchise fee and show a $100,000 letter of credit, but were unable to do so. They also needed at least $250,000 for anticipated operating costs.
“We hope to raise the money and come back in 2003,” said Mary Kaliff of the Nomads.
Kaliff said the organization will start the San Diego Soccer Academy to develop their own talent and build a suitable facility.
Last season, the Flash played home games at Mesa College. Derick Armstrong, also of the Nomads, said the cost to use the stadium, $39,000, was too much considering the team’s typical attendance ranged from 500 to 1,500 fans. He said they needed about 3,000 fans to balance the cost.
Armstrong said operating costs for last year easily exceeded $300,000. More than $100,000 was spent on travel alone. Workers’ compensation insurance cost more than $30,000, and total player salaries were between $80,000 and $90,000.
The team managed because most of those expenses were taken care of by the league.
“We’re not finished,” Armstrong said. “We’re not giving up on the idea of an A League function here. If things fall into place, we’ll be back in 2003, but it will be in a (different) stadium.”
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Numbers Slice:
Carlsbad-based Callaway Golf Cos. reported record sales to date, but a 6 percent drop in third quarter net sales.
The company announced sales of $710.9 million for the year to date, but third quarter sales of $195.8 million , down from $208.1 million during the same quarter last year.
The company’s net income during the quarter also declined, going from $20.1 million, or 29 cents per share, in 2000 to $6.5 million, or 9 cents per share, for this quarter. That includes a $7.8 million non-cash charge related to the company’s five-year energy supply contract. Without that charge, the company earned $14.3 million, or 20 cents per share, exceeding third quarter analysts estimated of 19 cents per share.
Some industry analysts who follow Callaway were concerned the company’s products are stacking up in warehouses. The company has said the continued U.S. Golf Association opposition of their ERC II driver, which does not conform to USGA rules, has hurt sales of the club in the U.S., but the driver continues to sell well overseas.
Callaway recently released a new driver, the C4. That driver meets USGA rules, and is expected to be available early next year.
The club features a lightweight composite graphite club head instead of steel or titanium. It is expected to cost more than Callaway’s VFT driver, which retails for $500, but less than the ERC II, which retails for $625.
Super Move:
Golf Fest, originally scheduled for Feb. 1-3, has been moved to March 15-17 so it will not conflict with the new date of the Super Bowl.
The new dates will position Golf Fest after the Buick Invitational and Accenture Match Play Golf matches and right before the beginning of the golf season, said Shelly Hall, co-founder of the event.
Golf Fest is a consumer show that gives the public an up-close view of the golf industry. The show features 125 vendors, including golf equipment manufacturers and clothing companies, club fitters, travel agencies for golf getaways, private and public golf courses and golf publications.
Local companies lined up to participate include: TaylorMade Golf Cos., American Golf Corp., Cleveland Golf, Borrego Springs Resort & Country Club, The Auld Course, and Marriott Vacation Club, among others.
The event will be held at the Del Mar Fairgrounds.
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It’s typical for military personnel to re-enlist for service somewhere near, or related to, their duty station.
But Navy Petty Officer 2nd Class Greg Raelson opted to have his ceremony during halftime at the San Diego Sockers game Oct. 28.
In full uniform, facing Cmdr. Stephen Marr and Capt. William Hoeft Jr., Raelson took his oath of re-enlistment into the Navy before local soccer fans.
Raelson, currently stationed aboard the USS Salt Lake City, was joined on the field by his family. He said he chose to re-enlist at the soccer match to show his passion for both his country and for soccer.
His next duty will be serving the Joint Chiefs of Staff at the Pentagon in Washington, D.C.
The deadline for the next Sports Biz column is Thursday, Nov. 1. Send related items to dward@sdbj.com.
