USGA, Manufacturer Settle Clubs’ Dispute

The United States Golf Assn. has agreed in an out-of-court settlement to recognize the Ping Eye-2 square-grooved clubs, and the manufacturer has agreed to stop making them.

Karsten Manufacturing Corp. had sued the USGA for $100 million after the USGA refused to recognize the clubs, which have U-shaped grooves on the clubfaces as opposed to traditional V-shaped grooves.

The settlement affects USGA events such as the U.S. Open but not the PGA Tour. The company, which has sold about two million sets of the clubs, obtained a federal court injunction allowing the clubs to be used in PGA Tour events. The PGA Tour has appealed to the 9th Circuit U.S. Court of Appeals in San Francisco.

A similar suit against the Royal and Ancient Golf Club of St. Andrews in Scotland, which sets worldwide rules for golf, was dropped by Karsten earlier this month.

Karsten Solheim, president and founder of the company, said the USGA agreed to pay his company $5 million as part of the settlement. But John Solheim, vice president and general manager of the company and the son of the president, said “no money changed hands.”