Bowling in the Gutter

[Troyza]

I can agree with Willey, seen it my self - our center was offering $8 dollar games (which is still expensive when you take into account how much it actually costs to run a pinsetter & centre lighting for 15 minutes) on Sunday nights after 6 PM, we wouldn't get out until at least 11:30PM~12:00AM. Very busy with more than 3 quarters of our center being used consistently every week. They took the deal away & now Sunday nights are dead. Dunno where that Sunday night revenue was supposed to go, traffic certainly didn't increase through the week with the deal gone.

With the right price, people can fill their centers. That's paramount to gaining/retaining more league bowlers, thus growth of the sport. Proprietors shouldn't be justifying their expensive pricing by adding new 'attractions', what rubbish.

 

[Mistagear]

So price does matter. It will change the behavior of people immediately. Thats true, but discounting a product over a long time (or permanently) only manages to decrease perceived value. Eventually you are forced to sell everything at the cheap price.
Bowling needs to change it's perceived value to attract new demographic groups !
Bowling has always had a blue collar sport image. There is no "exclusivity value" attached to bowling sport and the emotional/psychological value derived from playing the game is lower than most other sports.
If Bowling (Centres + Sport) is going to address the decline, first and foremost Bowling needs to re-invent itself. Otherwise the gradual decline will continue until we fall over the cliff where more Centres are closing or changing into something other than Bowling businesses.
Centre owners will hang on and resist closing down, so the decline in numbers would be slower BUT, if they see some alternative lifeline, like changing from a bowling business into an amusement business, the sport will suffer much more quickly.With either scenario, the sport of bowling could be almost completely wiped out.
I think this is what will happen and is already beginning in US.
My opinion based on observation only.

 

[steve jones]

In the gutter - well no - changing - but of course. It has been for a considerable time. The sport is diminishing world wide - membership numbers have been on the decline for years - in the US for at least as long as I was directly involved with the ABC and that's since the late 1980's. The industry is also changing it's shape - it needs to. In Australian Michael Schreiber essentially transformed a young generations perception of what bowling is when he started the Strike Bowling chain....what a success that group is.

Countries where they have rejected the natural transition - one example I have given previously is Korea - have seen centres close by the hundreds. Korea is one example I have noted previously. They rejected the influx of GID bowling [the Cosmic experience]. Their governing body legislated against it. As a result [certainly in part but not entirely] the number of lane beds went from around 30,000 to - I assume now, well under 10,000.

AMF [Ardent Leisure] have just appointed a highly experienced retail focused CEO. Some years ago it would have been considered madness...well at the very least commercial suicide for a bowling organisation like AMF to have employed someone in such a position without significant front of house bowling experience. It then became important for that person to have at least some understanding of bowling but own experiences in other indoor recreation industries [such as the theatre business] - now it seems logical to me that a retail person heads the most extensive bowling business in this country.

Simply because that in a nutshell is the market bowling is now in - it no longer has much to offer that separates it from the broader retail picture...and thus it must fight for every recreational dollar it can get. We should all wish her the very best of luck.

There will always be a competitive side to bowling. It too will change shape as it needs to..........but of course it will also be less and less important to the overall business of bowling...just as it has become over the past twenty or so years.

Change is inevitable...sometimes just for changes sake - but in this case, for the survival of the business and industry of bowling.

 

[jimcross]

Of course bowling as a sport is condemned to die. Not for a fair time yet, but inevitable. Apart from the serious bowlers themselves, it's only the majority of privately run centres (Not all, but certainly a healthy majority), who really care about, and love the sport who keep it going.
The peripherial ones - equipment makers - lanes - lane machines , pinsetters,pins, and balls.(That one's worth saying again -balls.) etc have their interests best served by promoting their latest products as being superior and 'must have' After all, who is going to buy a new lane machine every 10 or 15 years, at the same sort of time periods as bowlers think about buying a new ball, when your competitors have all the shiny latest things?

You can buy all sorts of high performance, but you can't buy skill, and in the long run it's skill that gives the greater satisfaction: why? Because YOU did it. It wasn't a bionic arm or a self-homing ball: it was you. In the long run, developing skill and using it and demonstrating it to those who watch, seems to be the lifeblood of major sports.

I won't see the end, but most of you will.

 

[Mistagear]

"There will always be a competitive side to bowling. It too will change shape as it needs to..........but of course it will also be less and less important to the overall business of bowling...just as it has become over the past twenty or so years.

Change is inevitable...sometimes just for changes sake - but in this case, for the survival of the business and industry of bowling."

Here's the thing.....
Bowling as a "Business" is turning into a purely "Leisure and Entertainment Business" as I've suggested previously. Increasingly being staffed and controlled by Entertainment Co's not Bowling Co's. These business organizations will eventually have no interest in Bowling what so ever, as they progressively turn their attention elsewhere.
I have no problem with, and encourage a business changing to suit current circumstances. Nor do I have a problem with a Sport changing to appeal to a greater audience.

"Simply because that in a nutshell is the market bowling is now in - it no longer has much to offer that separates it from the broader retail picture".

All the above is compelling argument for "Bowling the SPORT" to take control of it's own destiny in two ways,
1, Establish Bowling Centres which are run by a Bowling Sport Bodies as sports focused clubs, where profits from operations are used to financially support Bowling viability as a legitimate sporting endeavor.
2, Change how the game is played to make it appealing to spectate, so that Bowling can follow the path of other modern sports which concentrate on creating and increasing a fan-base for their respective Sport. This will ensure not only financial viability, but also create prestige and desire to compete at every level of competition within the sport.
Bowling Sport should change now before it's too late, rather than stick with a product which is no longer seen as desirable by the majority of the public. The Big Businesses in Bowling are already signalling the inevitable.... Change now or die a slow death.

I can see from the Total Bowling forum that bowlers are more interested in selling their second hand gear than they are in the future of their sport.... Pity.

 

[jimcross]

1.....Recognise The Problem.....

Simply because that in a nutshell is the market bowling is now in - it no longer has much to offer that separates it from the broader retail picture".



2.....How To Fix It......

All the above is compelling argument for "Bowling the SPORT" to take control of it's own destiny in two ways, Establish Bowling Centres which are run by a Bowling Sport Bodies as sports focused clubs, where profits from operations are used to financially support Bowling viability as a legitimate sporting endeavor.



3.....Why It Won't Happen......

I can see from the Total Bowling forum that bowlers are more interested in selling their second hand gear than they are in the future of their sport.... Pity.[/quote]

 

[steve jones]

Can't argue with either of the above - both summaries and comments appear to me to be accurate. The real trick of course will be to energize and make successful the entities that Mistagear believes will need to be established to save bowling the sport. I don't think he is wrong at all - most anything is possible if the right model is devised and the right people drive the model forward....and at the same time reverse the apparent plague of apathy that has hold of the sport right now.

I do know this though - that neither Jim nor I will likely see it happen.

Break a leg.

 

[Mistagear]

LAKE FOREST, Ill., July 17, 2014 - Brunswick Corporation BC -0.03% today announced it has agreed to sell its Retail Bowling business to Bowlmor AMF for $270 million, contingent upon customary closing procedures. Brunswick anticipates completing this transaction in approximately 90 days.
In connection with its decision to sell its bowling centers, Brunswick also announced its intention to divest its Bowling Products business. Brunswick is targeting to complete that sales process by the end of 2014, during which time the Company will continue to operate the business. Brunswick will retain its legacy and namesake Billiards business.
Sale of Retail Bowling Business
Brunswick stated that it had found the Bowlmor AMF offer, which was unsolicited, to be a unique opportunity to transfer ownership of this business at an attractive valuation. "Brunswick Retail Bowling has long been a solid contributor to our Company, and last year had approximately $187 million in sales. After careful consideration, however, we concluded that this transaction is in the best interests of our shareholders and the Retail Bowling business," explained Brunswick Chairman and Chief Executive Officer Dustan E. McCoy.
"The bowling industry has been evolving as center counts decline and the customer mix shifts from predominately league bowling to casual bowlers seeking an entertainment-oriented experience. For Brunswick to drive growth in this business, it would take continual development of new entertainment concepts and significant additional investment to implement these new concepts at new properties or to convert existing centers. We believe directing investments into select portions of our core Marine operations as well as our Fitness business provide better opportunities for greater returns. In 2013, the Marine and Fitness businesses together accounted for 92 percent of Brunswick's net revenues," McCoy continued.
"Conversely, Bowlmor AMF's primary strategic objective is to invest in and grow its retail bowling business, which includes proven entertainment concepts in certain of its centers. With the addition of the Brunswick locations, Bowlmor AMF will increase its center count to 343 in North America, and, it will add some of the most dedicated and talented people in retail bowling.
Exit of Bowling Products
"Finally, due to our exit from the Retail Bowling business, combined with similar market dynamics, we have retained Lazard to seek a suitable buyer for our Bowling Products business," McCoy concluded.
Brunswick stated its current plan assumes that the eventual purchaser will retain both the manufacturing operations and the talented workforce of Bowling Products. During the sale process, Bowling Products will maintain ongoing operations and conduct business-as-usual, while keeping its employees, distribution network and customer base informed of the sale's progress.
Restatement of Financial Results
As a result of the Company's announced sale of its Retail Bowling business and its intention to sell its Bowling Products business, beginning with the third quarter of 2014, Brunswick will report the results of these businesses, which were previously reported in the Bowling & Billiards segment, as discontinued operations. In addition, the results of the Billiards business will be included in the Company's Fitness segment.
Attached to this release, the Company has provided certain restated financial information for 2012, 2013 and the first quarter of 2014.
Impact on 2014 results and 2016 targets
As a result of these divestitures and associated discontinued operations treatment, Brunswick estimates the dilution to EPS from continuing operations, on both a GAAP and as adjusted basis, to be approximately $0.20 per diluted share for the full-year 2014. Further, Brunswick estimates that for 2014, the free cash flow from continuing operations will be lower by $35 million to $40 million.
The Company continues to believe it can achieve the long-term financial targets included in its three-year plan. Therefore, the Company maintains its original base case target of $3.00 to $3.40 earnings per diluted share in 2016.
Use of Proceeds
"Going forward, we anticipate net proceeds from both these divestitures and associated actions, which reflect our current estimates for taxes and liabilities to be paid, to approximate $270 million to $290 million. We believe our best opportunity to increase shareholder value is to use these net proceeds to strengthen our Marine and Fitness segments. Further, we plan to consider the following: increasing the quarterly dividend, accelerating contributions to the Company's underfunded pension plans as part of our de-risking strategy, and establishing a share repurchase program," McCoy explained.
"Our highest priority will be to target investment opportunities in segments such as marine parts and accessories along with those in Fitness. Brunswick already has completed one such investment by acquiring Whale, a leading marine parts and accessories provider, and we anticipate additional acquisition activity in this area," McCoy explained.

 

[amagill]

For anyone who doesn't want to read the wall of text above, in short, Brunswick have sold all the bowling centres to Bowlmor/AMF & are loking to sell their bowling equipment businesses by the end of this year as well. No more big B in the bowling world.

 

[steve jones]

Totally unsurprising. I spent 7 years responsible for Brunswick's Asia and Pacific business until 2001 - during that period the company went from having first and foremost bowling people in the most senior corporate roles to non at all. After Fred Florjancic missed being given the CEO and Chairman's responsibility [by just one vote mind you] - it was only a matter of time until bowling was moved to the very back of Brunswick's business entities as focus on the Marine and Fitness businesses was ramped up.

Add to that reality the worldwide downturn in the bowling industry, the emergence of Switch into the only two medium growth markets during the period being Eastern Europe and the Middle East further diluting market share for the two traditional players - the stagnant state of the retail bowling business in the US [by 2001 Brunswick had shed itself of all it's retail centres outside of the US] and you have good reason to exit.

I'm just surprised it's taken so long - although on second thoughts it's not all that surprising given buyers would have been extremely thin on the ground - time will tell if Bowlmor AMF will turn out to be Brunswick's version of what Alan Bond to Kerry Packer.

 

[jimcross]

Totally unsurprising. I spent 7 years responsible for Brunswick's Asia and Pacific business until 2001 - during that period the company went from having first and foremost bowling people in the most senior corporate roles to non at all. After Fred Florjancic missed being given the CEO and Chairman's responsibility [by just one vote mind you] - it was only a matter of time until bowling was moved to the very back of Brunswick's business entities as focus on the Marine and Fitness businesses was ramped up.

Add to that reality the worldwide downturn in the bowling industry, the emergence of Switch into the only two medium growth markets during the period being Eastern Europe and the Middle East further diluting market share for the two traditional players - the stagnant state of the retail bowling business in the US [by 2001 Brunswick had shed itself of all it's retail centres outside of the US] and you have good reason to exit.

I'm just surprised it's taken so long - although on second thoughts it's not all that surprising given buyers would have been extremely thin on the ground - time will tell if Bowlmor AMF will turn out to be Brunswick's version of what Alan Bond to Kerry Packer.

The only sure way to a bright future for the Sport of Bowling is to develop licenced bowling clubs ( like any football / golf club.) owned and run by it's members (bowlers and supporters) - Come to think of it, Mistagear and I talked about this well over 10 years ago.

It was right then, and it is right now.

And, yes ,I know that there is a lot of detail to go from a concept to reality. But really, that's not hard.

The hard bit is to get through to bowlers that if they continue to wait for someone else to come and 'fix it" for them = in your dreams!

So, bowlers have got to fix it for themselves - Oh dear...................Now we are in real trouble.

 

[Mistagear]

If you have even the slightest interest in bowling sport (and that's a given considering you are here)
This bloke is ESSENTIAL reading
http://joeschumacker.com/pdf/Bowling_2035.pdf

 

[jimcross]

Couldn't have said it much better myself -'specially as he agrees with me that we should develop skill in front of ball technology. There's at least Two Of Us in the world - we can only get stronger from here !!!