Global Edition

 

Elumina announcement has experts baffled

12.30am 14th March 2008 - Corporate

Last week Elumina Iberica SA, an international media operation based in Valencia, Spain, announced a US$40m deal for exclusive rights to supply upwards of 10,000 GPS golf buggy screens to “prestigious golf courses throughout China”. The announcement has left many industry insiders confused and puzzled.

It is true that golf represents a huge growth market in China but most observers believe that there are less than 300 golf courses in the whole country, with even the most optimistic estimates putting the total figure at no more than 400. As one insider said, “10,000 screens in China – man that’s bordering on the wild side!”

The company says that this deal follows 12 months of negotiations and is “timely” since Elumina has “recently severed its connections with its former supplier ProLink”, which poses another question: where are these screens coming from?

Elumina’s statement goes on to say that the structure of the deal is unique in that the equipment is being sold to Elumina’s advertising partner in China, who is supplying the equipment free of charge to the golf courses. “Over 54% of the advertising space has already been pre-booked to fund the roll out of screens across China,” said a company spokesperson. “Not only does Elumina benefit from the installation and maintenance of the equipment, but it retains a percentage of advertising rights, estimated to be worth up to US$15m.”

Mark Smart, Elumina Iberica S.A. managing director said, “There has been a lot of publicity and rumours in the golf industry concerning the dispute between us and Prolink and its impact. But this one deal alone guarantees significant revenue year on year for the continued success of Elumina. We look forward to continuing to grow our brand for many years to come and providing excellent service to our existing customers.”

Whatever the future holds for Elumina it seems clear that its association with ProLink is well and truly over. Reliable sources have told Golf Business News.com that Elumina no longer has any access to new ProLink screens nor any rights to use ProLink technology.

Under the circumstances, it is not surprising that speculation about a possible alternative source of supply is rife, with some punters putting their money on Scandinavia; others suggest that the kit bound for China may be reconditioned rather than brand new.

Elumina Iberica www.eluminaiberica.com

       

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