Eight months after being sold by Callaway, Topgolf’s new business plan under private-equity ownership is centered around balancing the need to get the size and scale of the company just right, while managing expansion efforts.
In November, Topgolf Callaway Brands agreed to sell majority control of Topgolf to PE firm Leonard Green & Partners in a deal that valued Topgolf at $1.1 billion and unwound the 2020 merger of Topgolf and Callaway. Leonard Green acquired a 60% stake in Topgolf, while Callaway—which remains publicly traded as Callaway Golf Company—still holds the remaining 40%. The deal closed in January.
“Part of the benefit of being private right now is for us to reset that business plan, and I think ultimately there’s great upside in the valuation of the company,” new Topgolf CEO David McKillips told Front Office Sports last week at the Open Championship. The new $1.1 billion valuation is down from $2 billion when Topgolf merged with Callaway six years ago.
Sitting atop the grandstands overlooking the drive range at Royal Birkdale, which uses Topgolf’s Toptracer technology, McKillips discussed his first few months with the company and long-term vision. Most recently the president and CEO of Chuck E. Cheese Entertainment, McKillips was hired by Topgolf in February, shortly after Leonard Green took over full control of the company. In May, McKillips decided to lay off 300 employees, which cut $40 million from Topgolf’s balance sheet.
“When I came into the business, I had to take a look at how many layers we had from a management perspective, based on the current business model, and for us to embrace technology, for us to make sure that our management is closer to the guests and to the player, I took some layers out,” McKillips told FOS.
For now, the layoffs are done, but Topgolf’s vision remains fluid.
“I’m comfortable at the level that we’re at today,” McKillips said. “We’re always going to fine-tune the business model to make sure that we’re delivering on a great guest experience. If you look at our NPS ratings—very, very strong—we’re still No. 1 in fun, and we’ll just continue to right-size the business to make sure we’re delivering on the guest and player experience.” (NPS refers to Net Promoter Score, which measures brand loyalty and perception.)
Topgolf joins Leonard Green’s portfolio of roughly $85 billion of assets under management, including Troon Golf, a third-party management and hospitality company, and the Life Time fitness chain.
Expansion Goals
Topgolf—which combines a traditional driving range experience with the offerings of a family-friendly restaurant and entertainment venue—has more than 100 locations worldwide, and plans to continue building new ones under PE ownership. More than 48 million Americans played some form of golf in 2025, according to the National Golf Foundation, marking a sixth consecutive year of growth and up from 34 million participants in 2019.
“Golf is having a moment,” McKillips said. So, perhaps it’s no surprise Topgolf wants to continue growing, even if the business model is tighter than it used to be.
“We’re going to be opening anywhere between three and five new venues a year domestically,” McKillips said. “There are a couple primary markets, and a lot of those are secondary and tertiary markets that we’re going to come in with probably a little bit of a smaller footprint.”
Outside the U.S., new venues are under construction in Madrid, Abu Dhabi, and Saudi Arabia. “We’re hoping to open between two and four units a year for the next five years from an international franchise perspective,” McKillips said.
Callaway’s Place
Callaway, now a minority investor with a 40% stake, doesn’t hold any decision-making power within Topgolf, but is still a vital part of the business. The golf-equipment manufacturer still supplies the clubs and balls used at Topgolf, and works with Topgolf on golf club fittings, tournaments, and other activities. “Anything golf-related, Callaway is still a part of our plan,” McKillips said.
Top professional golfers like Jon Rahm and Tyrrell Hatton still wear Topgolf logos on their clothing during tournaments as those sponsorship deals remain. Rahm still holds equity in Topgolf, which he received in 2023 as part of a contract extension with Callaway.
But it’s uncertain whether Topgolf will explore striking new pro endorsement deals moving forward. “I think that’s to be determined right now,” McKillips said. “We’ve got a great portfolio of player engagements. But you’re also going to see Topgolf look at reaching out to other social golfers—big names in the sport, as well.”
