The secret contract between Centroid Investment and F&F regarding the management rights of TaylorMade, one of the world's top three golf brands, has become a controversy. The issue centers on the promise of consent rights to F&F for major management decisions. F&F claims that Centroid, which was urgently securing funds, arbitrarily included this provision.
On the 17th, an F&F official stated, "Centroid, which was urgently securing acquisition funds, involved us as a strategic investor (SI) and guaranteed us the right of first refusal and consent rights to secure management rights of TaylorMade."
Actor Daniel Henney, the TaylorMade Golf ambassador (fourth from the left), attended the launch show of the '2025 TaylorMade Qi35 UNLOCK INVITATIONAL' held on the 8th at Dongdaemun Design Plaza (DDP) in Seoul. He is posing for a commemorative photo with Team TaylorMade professional players Suji Kim, Inah Yoon, Dungeun Lee, Ambassador Golfrano, and Chanmin Jung (from left). Photo by TaylorMade
In 2021, Centroid acquired TaylorMade shares from the U.S. investment firm KPS Capital Partners for about $1.7 billion (approximately 1.9 trillion KRW at the exchange rate at that time), attracting F&F as an SI. F&F's total investment amounted to 558 billion KRW. In this process, the company received from Centroid the right of first refusal and consent rights on major management matters.
Recently, Centroid has begun the process of selling TaylorMade. There is also the possibility of a third-party sale. In response, F&F maintains that, according to the original contract terms, a third-party sale cannot proceed without their consent.
Regarding this, a Centroid official rebutted, "Matters concerning the exercise of TaylorMade's management rights are entirely promoted and exercised by Centroid as the general partner, and only consent rights for certain matters were recognized for F&F."
F&F's position differs. An F&F official emphasized, "F&F has participated as a board member and played a strategic role in enhancing TaylorMade's corporate value." They explained that, as a fashion company, they have contributed more significantly to TaylorMade's growth than Centroid, a private equity fund.
In the investment banking industry, considering TaylorMade's annual EBITDA and management premium, the corporate value is estimated to exceed 5 trillion KRW.
Recently, the Financial Supervisory Service is reportedly investigating the facts related to the side agreement between Centroid and F&F concerning TaylorMade. F&F holds that legal responsibility lies entirely with Centroid.
An F&F official said, "Whether there was a violation of the Capital Markets Act will be determined through the financial authorities' investigation, and we plan to actively cooperate if such an investigation proceeds," adding, "If a violation of the Capital Markets Act is confirmed, the responsible party is the fund manager (GP), Centroid, which led the investment, and they will be subject to sanctions."
The dispute over the truth regarding the contract between the two parties is expected to continue. An F&F official stressed, "We attracted investment by promising consent rights on important management matters such as sales," and added, "There has been no discussion with us during the sales process, and rather, they are trying to ignore our consent rights by alleging abuse of consent rights, which is deeply concerning."
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