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 March 31, 2001

                                     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. Employer Identification No.)
 Incorporation or Organization)

32751 Middlebelt Rd., Suite B
Farmington Hills, Michigan 48334                               (248) 851-5651
----------------------------------                ----------------------------
(Address of principal executive offices         (Registrant's Telephone
including Zip Code)					Number 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 7/30/01 is 4,120,367

	Transitional Small Business Disclosure Format
                   Yes               	No         X
                       ------------          -----------

<PAGE>




                        CONSOLIDATED BALANCE SHEETS
                               (IN THOUSANDS)

                                                   March 31,     December 31,
                                                     2001             2000
                                                 (Unaudited)
                                                  ----------     ------------
ASSETS
Current Assets:
   Cash                                             $     274      $    273
   Trade accounts receivable, net                       2,384         1,891
   Inventories                                              2             2
   Prepaid expenses and other                             521           631
                                                     --------       -------
      Total current assets                              3,181         2,797

Fixed assets, net                                      13,090        13,100
Other assets, net                                       6,679         6,841
Deferred tax benefit                                    8,119         8,020
                                                     --------       -------
      Total assets                                   $ 31,069       $30,758
                                                      =======        ======

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
    Current portion of long term debt                $  1,200      $  1,200
    Accrued expenses                                    1,570         1,563
                                                     --------      --------
      Total current liabilities                         2,770         2,763

Notes payable to banks  -  long term                    6,998         7,225
Notes payable - long term                               7,700         7,700
Commitments and contingencies                               -             -
Net liabilities of discontinued operations              6,799         7,088
                                                       ------      --------
     Total  liabilities                                24,267        24,776
                                                       ------        ------

Minority interest in subsidiary                          -106          - 45
                                                       ------        ------

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                             24,898        23,933
Accumulated deficit                                   -21,386       -21,204
Accumulated other comprehensive income                   -134          -232
                                                      -------     ---------
      Total stockholders' equity                        6,908         6,027
                                                      -------       -------
     Total liabilities and stockholders' equity    $   31,069      $ 30,758
                                                   ==========      ========
<PAGE>
                      AJAY SPORTS, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)

                                                        Three Months
                                                        Ended March 31,
                                                         2001        2000
                                                    ----------   ----------
Net sales                                           $     575     $     808
Cost of sales                                               -             5
                                                    ---------      --------

Gross profit                                              575           803

Selling, general and
     administrative expenses                              621           753
                                                    ---------     ---------

Operating income (loss)                                   -46            50

Non-operating (income) expenses:
   Interest expense, net                                  277           250
   Other, net                                             160           229
                                                    ---------     ---------

Total non-operating expense                               437           479
                                                    ---------     ---------

Loss before minority interest and income taxes           -483          -429
Minority interest in income(loss) of subsidiary           -61            -8
                                                      -------     ---------
Income (loss) before income taxes                        -422          -421
Income tax expense (benefit)                             -148          -148
                                                      -------     ---------
Net income (loss) from continuing operations             -274          -273

Discontinued operations:
   (Loss) from operations of golf wholesale segment
     disposed of (net of income tax benefit
      of $307 in 2000)                                      -          -571
    (Loss) on disposal of golf wholesale segment
      (net of income tax benefit of $54)                 -140             -
    Gain (loss) from operations of furniture operations
      to be disposed of (net of income tax expense-
      of $125 in 2001 and benefit of $12 in 2000)         232           -23
                                                       ------      --------

     Total gain (loss) from discontinued operations        92          -594
                                                      -------      --------

Net (loss)                                          $    -182   $      -867
                                                    =========   ===========

Earnings (loss) per share - primary and fully diluted
Income (loss) from continuing operations            $   -0.09     $   -0.07
Income (loss) from discontinued operations              -0.03         -0.16
                                                    ---------      --------

Net (loss) per share                                $   -0.06     $   -0.23
                                                    =========     =========

Weighted average common shares outstanding              4,120         4,091
                                                    =========     =========
<PAGE>

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

                                                           Three Months
                                                           Ended March 31,
                                                          2001         2000
                                                        --------   --------
Cash flows from operating activities:

   Net (loss) from operations                        $     -274  $     -273
   Adjustments to reconcile to net cash flows from
     operating activities:
       Depreciation and amortization                        201         222
   Change in assets [(increase)/decrease] and
    liabilities [increase/(decrease)]:
      Trade accounts receivable, net                       -493        -119
      Prepaid expenses and other current assets             110         -21
      Deferred tax benefits                                 -25         -87
      Accrued expenses                                      -83         222
                                                       --------    --------

     Net cash (used in)operating activities                -564         -56
                                                        -------    --------

Cash flows from investing activities:
    Acquisitions of fixed assets                              -         -10
                                                        --------   --------

       Net cash (used in) investing activities of
         continuing operations                                -         -10
                                                        -------    --------
Cash flows from financing activities:
     Net change in notes payable                           -227           -
     Sales of common stock of subsidiary                    965           -
     Minority interest in loss of subsidiary                -35           -
                                                        -------    --------

        Net cash provided by (used in) financing
          activities of continuing operations               703           -
                                                         ------    --------

Cash flows from discontinued operations:
     Cash provided by (used in) operations                 -138         229
                                                         ------      ------

Net increase in cash                                          1         163
Cash at beginning of period                                 273         101
                                                          -----       -----
Cash at end of period                                 $     274     $   264
                                                      =========      =======

Supplemental disclosures of cash flow information:
   Cash paid for interest - operating companies       $     257   $     206
                                                      =========    ========

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

<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 March 31, 2001 and the
results of operations for the three-month periods ended March 31, 2001
and 2000 and the cash flows for the same three-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, 2000.

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.

<PAGE>
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 2, 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 are shown separately in the accompanying statement
of operations, and the statement of operations for 2000 has been restated in
accordance with APB 30 and operating results of the segments to be
discontinued and sold are also shown separately.  Leisure Life, Inc. is still
operating and purchase offers are being reviewed.

Net sales of the discontinued segments (000's) were $2,120 for the three
months ended March 31, 2001, and were $3,950 for the three months ended March
31, 2000.  These amounts are not included in net sales in the accompanying
statement of operations.  The 2001 amount represents that of the furniture
segment only, while the 2000 amount also includes the wholesale golf segment.
Furniture segment sales for the three months ended March 31, 2000 were $1,960.

Assets and liabilities, at book values, of the discontinued segments
consisted of the following at March 31, 2001 (000's):

       Cash                                  $          1
       Accounts receivable (net)                    1,128
       Inventories                                    516
       Property, plant, and equipment (net)           871
       Other assets                                   718
                                               ----------
          Total assets                              3,234
                                               ----------

       Accounts payable                             2,071
       Accrued expenses                             1,289
       Notes payable                                6,673
                                               ----------
          Total liabilities                        10,033
                                               ----------

           Excess of liabilities over assets     $  6,799
                                                 ========

Liabilities of the operations being discontinued exceeded assets of those
operations at March 31, 2001.  The net liability has been separately
classified in the accompanying balance sheet at March 31, 2001 and at
December 31, 2000.

<PAGE>
2.     INVENTORIES

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

                                      March 31,           December 31,
                                        2001                  2000
                                     ---------            ------------

Raw Materials                        $      -               $       -

Work in Process                             -                       -

Finished Goods                              2                       2
                                      -------                --------

                                     $      2               $       2
                                     ========               =========

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 principal 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.  The Company was notified by U.S. Bank that
it intended to foreclose on April 23, 2001 on its collateral and the loan
guarantors.  As of July 5, 2001 no action has been taken by U.S. Bank.

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 and principal, with all principal and fees due by
June 30, 2001.  The Company is negotiating a further extension of this
forbearance agreement.  At March 31, 2001 the principal balance due on
this loan was $8,198,000, and fees were owed of $300,000.

<PAGE>
4.     DIVIDENDS

Dividends on Series B and C Convertible Preferred Stock have not been declared
since 1997 due to unavailability of funds.  Dividends are in arrears on
Series B in the amount of $1,206,575 and on Series C in the amount of
$1,046,732.   Dividends are permitted to be paid under the credit agreement
when sufficient funds become available.


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 March 31, 2001, the Company's
continuing operations had working capital of $411,000 as compared to $34,000
at December 31, 2000, which does not include the operations being discontinued
and sold.  The ratio of current assets to current liabilities at March 31,
2001 was 1.15, as compared to 1.01 as of December 31, 2000.

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.   Wells has
extended its loan facility and forbearance agreement through July 13, 2001
while it is reviewing the our proposal for a longer extension to permit
Leisure Life, Inc. to be sold, or, in the alternative, to liquidate its
remaining inventory for full value.

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

At July 5, 2001, 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
principal 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 called for loan principal and fees to be
paid in full on June 30, 2001.  The Company is negotiating an extension of
the Comerica forbearance agreement.

The Pro Golf companies are in need of substantial additional capital, and
during May 2001 engaged a strategic banker in order to raise new equity
and debt capital to refinance its existing debt, and raise capital for
expansion, and raise working capital.  The agreement entered into requires
monthly retainer payments and for success fees to be paid when the capital
is raised.  The success fees are a percentage of the equity and debt capital
raised.

<PAGE>
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 listed these properties for sale
with commercial real estate brokers during the fourth quarter of 2000.  It is
expected that net proceeds to the Company from the sale of these properties
will be used to pay loan principal to Comerica Bank.

The Company also began an offering of ProGolf.com, Inc. ("PG.com") common
stock during November 2000 to raise up to $12,500,000 in gross offering
proceeds.  If the maximum offering is sold, the shares sold in this offering
will represent approximately 33% of the total PG.com common shares
outstanding after the offering.  Proceeds from these private placements will
be used for working capital, acquisitions, and growth.  As of June 30, 2001,
PG.com had received $2,273,000 from this offering.

PGI had anticipated significant additional cash flows resulting from the rents
and fees to be received from the golf properties during the initial
twelve-month period beginning July 1, 2000.  Rental income totaling $333,000
was accrued for the period July 1, 2000 through October 31, 2000.  At that
time, the golf operations on the properties ceased and real estate was listed
for sale with a commercial real estate broker.  The rental income receivable
is expected to be paid to PGI at the time the real estate is sold, out of
proceeds from residential property which is not owned by PGI but is included
in the listing with the broker.

PGOA is also negotiating master licensing agreements in foreign
countries, to permit others to use its name in various geographic locations,
for upfront licensing fees and/or ongoing licensing and royalty payments.
Additionally, the dome and retail store combination is planned as a new
franchise model and, if successful, could substantially increase revenues and
cash flow of the franchise operations.   PGOA and Domes are also planning to
open at least one Company-owned golf dome and Company-owned retail store as
funds become available.

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 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.).  Activities for these operations
were reported as  "discontinued operations" in the March 31, 2001 and 2000
(restated) Statement of Operations.

During the quarter ended March 31, 2001, the Company had net sales from
continuing operations of $575,000 compared to $808,000 for the quarter ended
March 31, 2000. This decrease was due to various factors including softness in
the golf industry during the first quarter of 2001, believed to be due to a
generally tough economic environment and bad weather, both leading to a
decline in rounds of golf played, and reduced retail sales of golf equipment
and accessories in the Pro Golf Discount stores resulting in lowered royalties
to Pro Golf of America.

Interest expense on continuing operations for the quarter ended March 31,
2001 was $287,000 and related to the financing obtained to enable the Company
to acquire Pro Golf in June 1999.

Net loss from continuing operations for the quarter ended March 31, 2001 was
$274,000 compared to a (restated to remove discontinued operations) loss of
$273,000 during the same quarter of 2000.  Prior to restatement, the loss from
operations for the three months ended March 31, 2000 was $867,000.

Cash flows for the three months ended March 31, 2001 from discontinued
operations were as follows:

       Net cash (used in) operating activities              $ (1,417)
       Net cash (used in) investing activities              $      0
       Net cash provided by financing activities            $  1,187

PART II.  OTHER INFORMATION

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/ Ronald N. Silberstein

                                    Its:  Chief Financial Officer and
                                          Corporate Secretary



Date: August 13, 2001
<PAGE>




EXHIBIT 27

ARTICLE                          5
CIK                              0000854858
NAME                             Ajay Sports, Inc.
MULTIPLIER                       1,000
CURRENCY                         US Dollar
PERIOD-TYPE                      3-MOS
FISCAL-YEAR-END                  DEC-31-2001
PERIOD-START                     JAN-01-2001
PERIOD-END                       MAR-31-2001
EXCHANGE-RATE                           1
CASH                                  274
SECURITIES                              0
RECEIVABLES                         2,684
ALLOWANCES                            300
INVENTORY                               2
CURRENT-ASSETS                      3,181
PP&E                               13,318
DEPRECIATION                          228
TOTAL-ASSETS                       31,069
CURRENT-LIABILITIES                 2,770
BONDS                                   0
PREFERRED-MANDATORY                 2,239
PREFERRED                           1,250
COMMON                                 41
OTHER-SE                            3,378
TOTAL-LIABILITY-AND-EQUITY         31,069
SALES                                 575
TOTAL-REVENUES                        575
CGS                                     0
TOTAL-COSTS                           621
OTHER-EXPENSES                         48
LOSS-PROVISION                          0
INTEREST-EXPENSE                      277
INCOME-PRETAX                       ( 422)
INCOME-TAX                          ( 148)
INCOME-CONTINUING                   ( 274)
DISCONTINUED                           92
EXTRAORDINARY                           0
CHANGES                                 0
NET-INCOME                          ( 182)
EPS-BASIC                           ( .06)
EPS-DILUTED                         ( .06)