UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

MARK ONE:

              (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 2000

                                       OR

              ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                          OF THE SECURITIES ACT OF 1934

                        For the transition period from          to
                                                       --------

                           Commission File No. 0-18204

                                AJAY SPORTS, INC.
                         ------------------------------
             (Exact name of Registrant as specified in its charter)


         Delaware                                                 39-1644025
----------------------                       ----------------------------------
(State or other jurisdiction of            (I.R.S.EmployerIdentification No.)
 Incorporation or Organization)

32751 Middlebelt Rd., Suite B
Farmington Hills, Michigan 48334                                (248)851-5651
----------------------------------            ---------------------------------
(Address of principal executive offices        (Registrant"s Telephone Number,
including Zip Code)                             including Area Code)


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  report),  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days.

            Yes  /x/                              No  / /

Number of shares of common stock outstanding at 9/30/00 is 4,120,367

                  Transitional Small Business Disclosure Format
                        Yes                     No    X
                            ------------           -------
<PAGE>

PART I.     FINANCIAL INFORMATION

Item 1.      FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S>                                                       <C>                 <C>

                       AJAY SPORTS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)

                                                         September 30,        December 31,
                                                             2000
                                                          (Unaudited)            1999
                                                         -------------        ------------
ASSETS

Current assets:
     Cash                                                 $       52           $      101
     Marketable  securities - available for sale                   -                  348
     Trade accounts receivable, net                            1,795                3,247
     Inventories                                                  91                3,969
     Prepaid expenses and other                                  601                1,179
                                                            --------             --------
                    Total current assets                       2,539                8,844

Fixed assets, net                                             13,104                1,693
Other assets, net                                              6,747                7,037
Deferred tax benefit                                           9,242                6,582
Goodwill                                                           -                1,577
                                                            --------             --------
                   Total assets                            $  31,632           $   25,733
                                                           =========            =========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
      Current portion of long term debt                      $     900         $      995
      Accounts payable                                               -              5,043
      Accrued expenses                                           1,376              1,099
                                                              --------            -------
                    Total current liabilities                    2,276              7,137

Notes payable to affiliates - long term                              -              2,087
Notes payable to banks  -  long term                             7,575             13,886
Notes payable - long term                                        7,700              2,070
Commitments and contingencies                                        -                  -
Net liabilities of discontinued operations                      10,500                  -
                                                               --------            -------
                    Total  liabilities                          28,051             25,180
                                                              --------             -------

Minority interest in subsidiary                                     21                 24
                                                              --------             -------

Stockholders' equity:
      Preferred stock, 10,000,000 shares authorized,
            Series B, $0.01 par value, 12,500 shares
                  outstanding at liquidation value               1,250              1,250
            Series C, $0.01 par value, 217,939 shares
                 outstanding at stated value                     2,179              2,179
            Series D, $0.01 par value, 6,000,000 shares             60                 60
      Common stock, $.01 par value 100,000,000 shares authorized,
                 4,120,017 and 4,091,091 shares outstanding         41                 41
Additional paid-in capital                                      23,263             15,500
Accumulated deficit                                            -23,119            -18,470
Accumulated other comprehensive income                            -114                -31
                                                              --------            -------
            Total stockholders' equity                           3,560                529
                                                              --------            -------
            Total liabilities and stockholders' equity      $   31,632         $   25,733
                                                              ========            =======

</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                       AJAY SPORTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                   (UNAUDITED)

<S>                                                <C>           <C>              <C>          <C>


                                                           Three   Months            Nine   Months
                                                          Ended September 30,        Ended September 30,
                                                       2000           1999          2000        1999
                                                       -----          -----         ------      ------
Net sales                                          $   1,260     $     995        $   3,657  $    995

Cost of sales                                              1             -                9         -
                                                     -------        ------          -------     ------
      Gross profit                                     1,259           995            3,648        995

Selling, general and
   administrative expenses                               707           950            2,436        950
                                                      ------        ------          -------     ------

      Operating income (loss)                            552            45            1,212         45

Non-operating (income) expense:
      Interest expense, net                              255           122              754        122
      Other, net                                         197            -5              600         -5
                                                      ------        ------          -------     ------
      Total non-operating expense                        452           117            1,354        117
                                                      ------        ------          -------     ------
Income (loss) before minority interest and income taxes  100           -72             -142        -72

Minority interest in income (loss) of subsidiary           3            -1               -3         -1
                                                      ------        ------          -------     ------
Income (loss) before income taxes                         97           -71             -139        -71

Income tax expense (benefit)                              34           -25              -49        -25
                                                      ------        ------          -------     ------
Net income (loss) from continuing operations              63           -46              -90        -46

Discontinued operations:
     (Loss) from operations of golf wholesale segment
            to be disposed of (net of income tax benefit
            of $601 in 2000 and $867 in 1999)              -          -650           -1,130     -1,611
     (Loss) on disposal of golf wholesale segment
           (net of income tax benefit of $1,708)      -3,158             -           -3,158          -
     (Loss) from operations of furniture operations to be
            disposed of (net of income tax benefit of $135
            in 2000 and $235 in 1999)                    -63          -423             -248       -436
                                                      ------        ------          -------     ------
      Total (loss) from discontinued operations       -3,221        -1,073           -4,536     -2,047
                                                      ------        ------          -------     ------

Net (loss)                                          $ -3,158     $  -1,119        $  -4,626   $ -2,093
                                                      ======       =======           ======     ======

Earnings (loss) per share - primary and fully diluted
  Income (loss) from continuing operations          $   0.00     $   -0.01        $   -0.02   $  -0.01
  (Loss) from discontinued operations                  -0.79         -0.27            -1.17      -0.52
                                                      ------       -------           ------     ------
  Net (loss) per share                              $  -0.79     $   -0.28        $   -1.19   $  -0.53
                                                      ======       =======           ======     ======
Weighted average common shares outstanding             4,120         3,957            4,104      3,957
                                                      ======       =======           ======     ======

</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>                                                            <C>                <C>

                       AJAY SPORTS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (IN THOUSANDS), (UNAUDITED)


                                                                      Nine    Months
                                                                      Ended September 30,
                                                                  2000               1999
                                                                 ----------       ---------
Cash flows from operating activities:

      Net (loss) from operations                              $     -4,626        $   -2,093
      Adjustments to reconcile to net cash flows from
      operating activities:
           Depreciation and amortization                             1,987               303
           Loss on dispositions of property and equipment              290
      Change in assets [(increase)/decrease] and
       liabilities [increase/(decrease)]:
           Trade accounts receivable, net                              140            -1,025
            Inventories                                              3,691             1,448
            Prepaid expenses and other current assets                  376              -377
            Other assets                                                 -               -34
            Deferred tax benefits                                   -2,660            -3,624
            Accounts payable                                           188             1,545
            Accrued expenses                                           833               656
           Trademarks                                                    -            -6,989
                                                                 ---------        ----------

              Net cash provided (used in) operating activities         219           -10,190
                                                                 ---------        ----------
Cash flows from investing activities:
       Acquisitions of fixed assets                                   -170              -234
                                                                 ---------        ----------
            Net cash used in investing activities                     -170              -234
                                                                 ---------        ----------

Cash flows from financing activities:
        Net change in notes payable                                   -570            10,509
        Sales of common stock of subsidiary                            357                 -
        Common stock issued for accounts payable                        43                 -
        Net change in marketable securities                             83                16
        Net change from conversion of preferred stock                    -               303
        Minority interest in loss of subsidiary                         -3                24
                                                                 ---------         ---------
            Net cash provided by (used in)financing activities         -90            10,852
                                                                 ---------         ---------
Net increase (decrease) in cash                                        -41               428
Cash at beginning of period                                            101                 6
                                                                 ---------         ---------
Cash at end of period                                            $      60        $      434
                                                                 =========         =========
Supplemental disclosures of cash flow information:
       Cash paid for interest                                    $     878        $      622
                                                                 =========        ===========

       Cash paid for income tax                                  $       -        $        -
                                                                 =========         =========

Non-cash financing transactions:
       Common stock issued for real property                     $  13,000        $        -
                                                                 ==========        =========

</TABLE>

<PAGE>


                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

This report contains forward-looking  statements including statements containing
words such as "believes", "anticipates", " expects" and the like. All statements
other than  statements  of  historical  fact included in this report are forward
looking statements.  The Company believes that its expectations reflected in its
forward looking statements are reasonable, but it can give no assurance that the
expectations  ultimately will prove to be correct.  Important factors including,
without limitation, statements relating to planned acquisitions,  development of
new products,  the financial  condition of the Company,  the ability to increase
distribution  of the Company's  products,  integration of businesses the Company
has acquired,  disposition of any current  business of the Company,  a change in
the  Company's   relationships  with  its  bank  lenders  and/or  the  Company's
relationship with Williams  Controls,  Inc., a related company,  could cause the
Company's  actual results to differ  materially from those  anticipated in these
forward-looking   statements.   The  Company  does  not  intend  to  update  the
forward-looking statements contained in this report.

1.    BASIS OF PRESENTATION

The  condensed  consolidated  financial  statements  included  herein  have been
prepared by Ajay Sports,  Inc. (the "Company") without audit and pursuant to the
rules and regulations of the Securities and Exchange Commission.  In the opinion
of the Company, the financial statements reflect all adjustments,  which consist
only of normal recurring adjustments,  necessary to present fairly the financial
position of the Company at September 30, 2000 and the results of operations  for
the nine-month  periods ended September 30, 2000 and 1999 and the cash flows for
the same nine-month periods.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted pursuant to the SEC rules and regulations dealing
with  interim  financial  statements.  However,  the Company  believes  that the
disclosures  made in the  condensed  financial  statements  included  herein are
adequate to make the  information  presented  not  misleading.  These  condensed
financial statements should be read in conjunction with the financial statements
and notes thereto  included in the Company's  Annual Report on Form 10-K for the
fiscal year ended December 31, 1999.

The year-end  condensed  balance  sheet data was derived from audited  financial
statements,  but does not include all disclosures required by generally accepted
accounting principles.

The interim period results are not necessarily  indicative of results, which may
be expected for any other interim  period,  or for the full year.  Certain costs
are  estimated  for the full year and  allocated  to  interim  periods  based on
activity associated with the interim period. Accordingly, such costs are subject
to year-end adjustment.

On June 1, 2000,  the  Company  adopted a formal  plan to  discontinue  its golf
manufacturing  and wholesale  distribution  businesses  (Ajay Leisure  Products,
Inc., Palm Springs Golf,  Inc.,  Prestige Golf, Inc. and Ajay De Mexico,  Inc.)
and to sell its  furniture  manufacturing  business  (Leisure  Life,  Inc.).  In
accordance with generally accepted accounting principles,  operating results for
these  businesses  for the shown  separately  in the  accompanying  statement of
operations,  and the  statement  of  operations  for 1999 has been  restated and
operating  results of the  segments to be  discontinued  and sold are also shown
separately.

Net sales of the discontinued segments (000's) were $6,979 and $478 for the nine
months and three months ended September 30, 2000, respectively, and were $10,512
and $1,689 for the nine  months  and three  months  ended  September  30,  1999,
respectively.  These  amounts are not included in net sales in the  accompanying
statement of operations.

Assets and liabilities,  at book values, of the discontinued  segments consisted
of the following at September 30, 2000 (000's):

      Cash                                $          7
      Accounts receivable                        1,312
      Inventories                                  187
      Prepaid expenses                             194
      Property, plant, and equipment               933
      Other assets                                  75
                                                 -----
         Total assets                            2,708
                                                 -----

      Accounts payable                           4,792
      Accrued expenses                           1,486
      Notes payable                              6,382
      Other liabilities                            548
                                                ------
         Total liabilities                      13,208
                                                ------

         Excess of liabilities over assets     $10,500
                                                ======
<PAGE>
Liabilities  of the  operations  being  discontinued  exceeded  assets  of those
operations  at  September  30,  2000.  The net  liability  has  been  separately
classified in the accompanying balance sheet at September 30, 2000. The December
31, 1999 balance sheet has not been restated.

2.    INVENTORIES

The major classes of inventories (rounded to thousands) are as follows:

                           September 30,             December 31,
                             2000                       1999
                           ------------              -------------

Raw Materials            $     -                     $    827

Work in Process                -
                                                          903

Finished Goods                91                        2,239
                           -------                     -------

                         $    91                     $  3,969
                           =======                    ========


3.    NOTES PAYABLE TO BANKS

On February 2, 1999, the Company  entered an agreement with Wells Fargo Bank for
a seasonal over advance of up to $750,000  beginning  February 2, 1999. The full
amount of this over  advance was due June 2000.  The Company has been  operating
under a forbearance  agreement since June 2, 2000, as it was unable to repay the
loan  when it was due.  Other  Wells  loans  are  also  under  this  forbearance
agreement.  Proceeds from assets sold as part of its  discontinuance and sale of
the  discontinued  operations are expected to provide funds to satisfy the Wells
loans.

The  Company  also was not able to repay  its loan with  U.S.  National  Bank of
Oregon when the principle  amount of  $1,315,000  became due on July 1, 2000 and
has been  operating  under a forbearance  agreement  that expired on October 31,
2000 and is being renegotiated.

On June 23,  1999 the  Company,  through  a newly  formed  subsidiary,  Pro Golf
International,  Inc. increased its borrowings by $8,500,000 with a 75-day bridge
loan from Comerica Bank. The proceeds of this loan were used toward the purchase
of 100% of the outstanding  common stock of Pro Golf of America,  Inc. Effective
June 22, 2000 the loan was extended and became a demand note,  with interest due
monthly  and  principal  of $75,000 a month  beginning  September  1, 2000.  The
Company was  declared to be in default of the loan  provisions  on  September 1,
2000 and has been operating  under a forbearance  agreement since that time. The
forbearance agreement calls for monthly payments of interest, with all principal
and fees due by December 1, 2000. At September  30, 2000 the  principal  balance
due on this loan was $8,425,000, and fees were owed of $300,000.

4.    DIVIDENDS

Dividends on Series B and C Convertible  Preferred  Stock have not been declared
for 1997,1998,  1999 or 2000 due to  unavailability  of funds.  Dividends are in
arrears on Series B in the amount of $1,181,575 and on Series C in the amount of
$986,467.  Dividends  are permitted to be paid under the credit  agreement  when
sufficient funds become available.

<PAGE>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

See  "Cautionary  Statement"  at the  beginning of the "Notes  to  Consolidated
Financial Statements".
 .
FINANCIAL  CONDITION  AND  LIQUIDITY - At  September  30,  2000,  the  Company's
continuing  operations had working capital of $263,000 as compared to $1,707,000
at December 31, 1999, which includes the operations being discontinued and sold.
The ratio of current  assets to current  liabilities  at September  30, 2000 was
1.1, as compared to 1.2 as of December 31, 1999.

During  late 1999 and into 2000,  the Company  took  action to reduce  operating
costs by  reducing  its  work  force  and  cutting  certain  other  selling  and
administrative  expenses. The Company also closed its Mexicali,  Mexico facility
during June 2000. On June 1, 2000 the Company  adopted a strategic  plan calling
for the liquidation of its Delavan, Wisconsin operations (Ajay Leisure Products,
Inc.,  Palm  Springs  Golf  Inc.,  and  Prestige  Golf Inc.) and the sale of its
Baxter,  Tennessee  operation  (Leisure Life,  Inc.). The Company  completed the
closing of the  Wisconsin  facility  on August 31,  2000.  The  Company has been
attempting  to sell  Leisure  Life,  Inc.  and has made a proposal to Wells that
funding continue through the current season so that cash flow can further reduce
the loan balance and a qualified buyer can be located.

It is expected that most, if not all, of the proceeds from the discontinuance of
these operations will be used to pay the Company's secured creditors.

At September 30, 2000 and into the fourth quarter,  the Company is reviewing its
current loan positions with its lenders. Its seasonal loan with Wells Fargo Bank
was  extended  through June 2, 2000 and the Company has been  operating  under a
forbearance  agreement  since  that time on that loan and its other  loans  with
Wells.  The Company also was not able to repay its loan with U.S.  National Bank
of Oregon when the principle amount of $1,340,000 became due on July 1, 2000 and
has been  operating  under a forbearance  agreement  that expired on October 31,
2000  and  is  being  renegotiated.  The  Company  is  also  operating  under  a
forbearance  agreement  with  Comerica  Bank that  calls for loan  principal  of
$8,425,000  and fees of $300,000  to be paid in full on  December  1, 2000.  The
Company  is  in  need  of  substantial   additional  capital,  and  has  engaged
professional  advisors to assist it in raising equity and debt capital to permit
it to repay its bank lenders in full,  have  sufficient  working capital to fund
operations  during  seasonal  downturns  in the  golf  industry,  and to help it
achieve its expansion  goals with Pro Golf of America and Pro Golf Online,  Inc.
As of November 20, 2000,  new  financing  has begun to come in through a private
offering of 5,000,000  shares of common stock of Pro Golf Online.  Subscriptions
for _____  shares at $2.50 per share have been  received and paid for as of that
date. The Company is also  proceeding with efforts to raise up to $13,000,000 in
a  combination  of equity,  subordinated  debt,  and senior debt in its Pro Golf
International,  Inc. subsidiary,  the proceeds of which may be used to refinance
its bank debt and subordinated debt and for working capital.

In July 2000, Pro Golf  International,  Inc.  acquired golf real estate in Birch
Run,  Michigan  and vacant land in Vero Beach,  Florida in exchange  for 108,334
common shares of PGI. The  properties had appraised  values of  $13,000,000  and
debt approximating  $6,500,000.  The Company presently is conducting  interviews
with  commercial real estate brokers and intends to list the properties for sale
during the fourth quarter of 2000.

<PAGE>
RESULT OF OPERATIONS - Due to the  continued  losses of certain of the Company's
operating subsidiaries, management adopted a formal plan of liquidation and sale
of it's Delavan, Wisconsin operations (Ajay Leisure Products, Inc., Palm Springs
Golf  Inc.,  and  Prestige  Golf  Inc.)  and the sale of its  Baxter,  Tennessee
operation (Leisure Life, Inc.). Activities for these operations were reported as
"discontinued  operations"  in  the  September  30,  2000  and  1999  (restated)
Statement of Operations.

During the quarter  ended  September  30,  2000,  the Company had net sales from
continuing  operations of $1,260,000  compared to $995,000 for the quarter ended
September 30, 1999. This increase was due to increased  royalties  earned by its
franchise operations, new franchise sales during the quarter ended September 30,
2000,  and rental  income  accrued on its golf real estate that was  acquired in
July 2000.

Interest  expense on continuing  operations for the quarter ended  September 30,
2000 was $255,000 and related to the financing obtained to enable the Company to
acquire Pro Golf in June 1999.

Net income from  continuing  operations for the quarter ended September 30, 2000
was $63,000 compared to a (restated to remove  discontinued  operations) loss of
$46,000  during the same quarter of 1999.  Prior to  restatement,  the loss from
operations for the nine months ended September 30, 1999 was $2,093,000.

Cash  flows for the nine  months  ended  September  30,  2000 from  discontinued
operations were as follows:

      Net cash provided by operating activities            $       79

      Net cash used in investing activities                $        0

      Net cash used in financing activities                $      704

PART II.  OTHER INFORMATION

Item 5.  Other Information.

         None

Item 6.     EXHIBITS AND REPORTS ON FORM 8-K.


         A) Exhibits:

              27    Financial Data Schedule.

         B)   Forms 8-K:

              Not Applicable.

<PAGE>

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                AJAY SPORTS, INC.
                         -----------------------------

                                       By:    /s/Robert R. Hebard
                                          ---------------------------
                                       Its:     Corporate Secretary

                                       By:    /s/Ronald N. Silberstein
                                          ---------------------------
                                       Its:    Chief Financial Officer

Date: November 20, 2000