Mike Trout & Tiger Woods Are Building A Golf Course
Huddle Up is a 3x weekly newsletter that breaks down the business and money behind sports. If you are not already a subscriber, sign up and join 100,000+ others who receive it directly in their inbox each week. Today’s Newsletter Is Brought To You By SoFi!
SoFi is the all-in-one finance app helping you bank, borrow, invest, and save. SoFi’s mission is to help members achieve financial independence and realize their ambition, all in one app. SoFi is transforming the industry and disrupting how the world sees personal finance, and it’s the single app you need to get your money right. I’m a SoFi member, and I love it. SoFi is legit, and they comply with the strict regulatory standards of the FDIC so you can be sure your money is safe. Friends, Mike Trout is one of the world’s best baseball players. The New Jersey native has already won three MVP awards by the age of 31. He is the first baseball player since Ken Griffey Jr. in 2014 to be given their own signature shoe from Nike, and the LA Angels signed him to the largest contract in MLB history — 12 years, $426.5 million. Largest Contracts In MLB History
But here’s the part you didn’t know: Mike Trout is also an avid golfer. He has a self-claimed 7 to 8 handicap. The 6′ 2″, 235-pound athlete routinely drives the ball 330+ yards, showcasing 150 mph club speed. And Trout says he even has a hole-in-one. And now Trout is taking this passion to the next level, announcing last month that he is teaming up with Tiger Woods to open an 18-hole golf course in New Jersey.
Mike Trout’s love for golf goes back to his high school days. He grew up in a southern New Jersey town called Millville — about 45 minutes from Philadelphia and a similar distance to the Jersey Shore — and he often went to the driving range with his dad. And that passion only got stronger during his MLB career. Trout says he plays golf every off day he has on the road during the MLB season as a mental getaway from baseball. He frequently brings along equipment to record video of his swing and intentionally carves out time for driving range sessions to improve his overall game. But now he is taking his passion to the next level with a multi-million-dollar deal.
Trout has explored potential golf course investments in the past, but none of them worked out for one reason or another. But then he was sitting at home during the COVID-19 lockdowns when someone sent him a drone video of a golf course being built in Vineland, New Jersey — located just 10 minutes from where he grew up. “It was probably a year or two later somebody sent me drone footage of somebody attempting to build a couple of holes in Vineland while courses were shut down,” Trout told SI. “I sent it to my brother, Tyler, and said, ‘Can you look into this for me?'” That video then led to a meeting with John Ruga of Millville, a developer and President of Northeast Precast in Vineland, and Ruga’s wife, Lorie.
The Ruga’s hit it off with Trout and his wife and the rest is history. Trout became a partner in the project, and they expanded the initial design from just a 9-hole course to a full 18-hole course with a clubhouse, 5-star hotel, wedding chapel, and restaurant. “We’re going to be doing some really cool things from a service and offering standpoint,” Trout told Forbes. “Although plans aren’t finalized quite yet, I’ll put it to you this way — this will not be your grandparents’ country club.” The course is named “Trout National – The Reserve,” and it’s expected to open in 2025. Trout National – The Reserve Features
But with the course expanding from just 9 holes to 18, the ownership group was looking for a new designer. So Mike Trout reached out to Tiger Woods, of course. “My favorite golfer growing up obviously was Tiger,” Trout told Sports Illustrated. “I thought it would be pretty cool to reach out. We reached out, got a positive vibe when we mentioned it, and got his team down to the site. Once Tiger’s team came down to the site, they loved it. It’s surreal. I mean, it’s friggin’ Tiger!” And the design and construction process has already started. For example, here are a few aerial shots of what the course looks like today. Much of it is still barren, but there are a few holes that are nearly complete, and the rest should take 12-18 months.
Now, running a golf course isn’t easy — by any means. Most courses operate as a nonprofit because of the historically low-profit margins, and it’s been estimated that about 25% of golf courses in the United States don’t currently make any money at all. A course like Trout’s probably needs to bring in at least $1.5 million in annual revenue to be profitable. And even then, they are only looking at a 6x to 8x EBITDA multiple. But Trout doesn’t need this course to be a home run for it to make financial sense. He already makes about $50 million annually as one of the world’s top 25 highest-paid athletes, and there could be a much bigger business built off the back of this idea. For example, we have seen a trend emerge where non-golf athletes are launching products and signing golf-related partnership deals — Michael Jordan, Stephen Curry, Aaron Rodgers, and Charles Barkley. And with Trout already having a relationship with Nike, it’s not hard to imagine them launching a golf collection in the future. Non-Golf Athletes With Golf Partnerships
So don’t be surprised if this is just step one for Mike Trout when it comes to golf. He has already made enough money for several generations of his family to be financially secure, but the hyphenated name (Trout National – The Reserve) suggests more courses could be coming. And my guess is that golf apparel might be, too. I hope everyone has a great day. We’ll talk on Friday. Interested in advertising with Huddle Up? Email me. Your feedback helps me improve Huddle Up. How did you like today’s post? Loved | Great | Good | Meh | Bad Extra Credit: Why Deion Sanders is UNDERPAID at ColoradoHuddle Up is a 3x weekly newsletter that breaks down the business and money behind sports. If you are not already a subscriber, sign up and join 100,000+ others who receive it directly in their inbox each week.
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