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, 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. Employer
 Incorporation or Organization)                       Identification No.)


32751 Middlebelt Road, Suite B

Delavan, Wisconsin   53115                                  (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 3/31/00 is 4,091,091

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


<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,  and 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.

<PAGE>

<TABLE>
<CAPTION>

PART I.     FINANCIAL INFORMATION

Item 1.      FINANCIAL STATEMENTS

                                                      AJAY SPORTS, INC. AND SUBSIDIARIES
                                                         CONSOLIDATED BALANCE SHEETS

                                                               (IN THOUSANDS)

                                                                          March 31, 2000              December 31,
                                                                            (Unaudited)                   1999
                                                                          ---------------            --------------
<S>                                                                       <C>                       <C>
ASSETS

Current assets:
     Cash                                                                 $        264               $        101
     Marketable  securities - available for sale                                   333                        348
     Trade accounts receivable, net                                              4,363                      3,247
     Inventories                                                                 3,317                      3,969
     Prepaid expenses and other                                                    997                      1,179
                                                                          --------------             ---------------
                    Total current assets                                         9,274                      8,844

Fixed assets, net                                                                1,512                      1,693
Other assets                                                                     7,023                      7,037
Deferred tax benefit                                                             7,172                      6,582
Goodwill                                                                         1,566                      1,577
                                                                          --------------             ---------------
                   Total assets                                           $     26,547               $     25,733
                                                                          ==============             ===============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
      Current portion of long term debt                                   $      1,530               $        995
      Accounts payable                                                           5,363                      5,043
      Accrued expenses                                                           1,548                      1,099
                                                                          --------------             ---------------
                    Total current liabilities                                    8,441                      7,137

Notes payable to affiliates - long term                                          2,087                      2,087
Notes payable to banks  -  long term                                            13,725                     13,886
Notes payable - long term                                                        1,200                      2,070
Commitments and contingencies                                                        -                          -
                                                                          --------------             ---------------
                    Total  liabilities                                          25,453                     25,180
                                                                          --------------             ---------------

 Minority Interest in Subsidiary                                                    16                         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,
                 4,091,091 shares outstanding                                       41                         41
Additional paid-in capital                                                      16,840                     15,500
Accumulated deficit                                                            (19,337)                   (18,470)
Accumulated other comprehensive income                                              45                        (31)
                                                                          --------------               -------------
            Total stockholders' equity                                           1,078                        529
                                                                          --------------               -------------
            Total liabilities and stockholders' equity                    $     26,547                 $   25,733
                                                                          ==============               =============

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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

                                                            (UNAUDITED)

                                                           Three Months
                                                          Ended March 31,
                                                  2000                       1999
                                              -----------                -----------
<S>                                           <C>                        <C>
Net sales                                     $      4,758               $     4,263

Cost of sales                                        3,827                     3,595
                                             -------------               ------------
      Gross profit                                    931                        668

Selling, general and

   adminisrative expenses                           1,474                        851
                                             --------------              ------------

      Operating income (loss)                        (543)                      (183)

Non-operating expense:
      Interest expense, net                           502                        253
      Other, net                                      284                         26
                                             ---------------             ------------
      Total non-operating expense                     786                        279
                                             ---------------             ------------
(Loss) before minority interest and income taxes   (1,329)                      (462)

Minority interest in (loss) of subsidiary               8                          -
                                             ---------------             ------------
(Loss) before income taxes                         (1,321)                      (462)

Income tax (benefit)                                  462                          -
                                             ---------------             ------------
Net (loss)                                   $       (867)               $      (462)
                                             ===============             ============
Basic and diluted earnings (loss) per share  $      (0.23)               $     (0.14)
                                             ===============             ============
Weighted average common shares outstanding          4,091                      3,957
                                             ===============             ============




</TABLE>
<PAGE>

<TABLE>
<CAPTION>

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

                                                                                Three Months
                                                                              Ended  March 31,

                                                                         2000                  1999
                                                                   -------------           ------------
<S>                                                                <C>                     <C>
Cash flows from operating activities:

      Net (loss)                                                   $       (867)           $      (462)
      Adjustments to reconcile to net cash flows from
      operating activities:
           Depreciation and amortization                                    303                     95
      Change in assets [(increase)/decrease] and
       liabilities [increase/(decrease)]:
           Trade accounts receivable, net                                (1,116)                (1,462)
            Inventories                                                     652                   (202)
            Prepaid expenses and other current assets                       182                   (112)
            Other assets                                                     24                      3
            Deferred tax benefits                                          (590)                     -
            Accounts payable                                                320                     43
            Accrued expenses                                                449                    187
                                                                   -------------           -------------
                   Net cash used in operating activities                   (643)                (1,910)
                                                                   -------------           -------------
Cash flows from investing activities:

       Acquisitions of fixed assets                                         (18)                   (19)
                                                                   -------------           -------------
                    Net cash used in investing activities                   (18)                   (19)
                                                                   -------------           -------------
Cash flows from financing activities:

        Net change in notes payable                                         520                  1,904
        Sales of common stock of subsidiary                                 297                      -
        Net change in marketable securities                                  15                     46
        Minority interest in loss of subsidiary                              (8)                     -
                                                                   -------------            ------------
                     Net cash provided by  financing activities             824                  1,950
                                                                   -------------            ------------
Net increase (decrease) in cash                                             163                     21
Cash at beginning of period                                                 101                      6
                                                                   -------------            -------------
Cash at end of period                                              $        264             $       27
                                                                   =============            =============
Supplemental disclosures of cash flow information:

       Cash paid for interest                                      $        502             $      254
                                                                   =============            =============
       Cash paid for income tax                                               -                      -
                                                                   =============            =============





</TABLE>

<PAGE>

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, 2000 and the results of operations  for the
three and  nine-month  periods  ended March 31, 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.

<PAGE>

2.    INVENTORIES

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

                            March 31,                 December 31,
                              1999                       1999

Raw Materials                $1,086                     $  827

Work in Process               1,103                        903

Finished Goods                2,043                      2,239
                              -----                      -----

                             $4,232                    $ 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  is due on June 2,  2000.  The  interest  rate on
advances outstanding on the over advance is prime plus 2%.

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. The loan
was due on the  earlier  of demand  or March 15,  2000.  The  company  is in the
process of converting  this loan into long-term  financing.  The Company expects
the refinancing to be completed  during the second quarter of 2000. At March 31,
2000, the principal balance due on this loan was $8,425,000.

<PAGE>

4.    SEGMENT INFORMATION

The contribution to net sales,  operating income (loss) and identifiable  assets
of the  Company's  industry  segments  for the  quarter  ended
March 31, 2000 and 1999 (unaudited) are as follows (in thousands):

<TABLE>
<CAPTION>

<S>                   <C>            <C>       <C>           <C>        <C>         <C>
-------------------------------------------------------------------------------------------------
                          Quarter Ended March 31, 2000
                                 GOLF
                             ----------------------
                                                 Specialty
                                      Mass       Golf
                         Furniture    Merchant   Stores      Franchise   Corporate  Consolidated
                         ---------    --------   ----------  ---------   ---------  -------------


Net Sales                 $ 1,960   $  1,298     $ 165       $    809      $   -      $  4,758

Operating Profit/(Loss)       232       (624)      (53)            50       (148)         (543)

Total Assets                2,137      3,377     6,325         14,685          -        26,524

Depreciation/Amortization      30         43        13            217            -           303

Capital Expenditures            1          -         -             17          -            18
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------

                          Quarter Ended March 31, 1999

                                GOLF

                             ----------------------
                                                 Specialty
                                      Mass       Golf

                         Furniture    Merchant   Stores     Franchise   Corporate   Consolidated

                         ---------    --------   ---------  ---------   ---------   ------------

Net Sales                 $  2,268    $ 1,954     $    41    $     -     $     -    $  4,263

Operating Profit/(Loss)        316       (310)        (35)         -        (154)       (183)

Total Assets                 4,019      8,997       1,786          -           -      14,802

Depreciation/Amortization      24          58          13          -           -          95

Capital Expenditures           19           -           -          -           -          19
--------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

5.    DIVIDENDS

          Dividends on Series B and C Convertible  Preferred Stock have not been
     declared for 1997, 1998 or 1999 due to unavailability  of funds.  Dividends
     are in arrears on Series B in the amount of  $1,081,575  and on Series C in
     the amount of $762,747. 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.  At March 31,  2000 the  Company  had  working  capital of
$833,000,  as compared to $1,707,000 at December 31, 1999.  The ratio of current
assets to current  liabilities  at March 31, 2000 was 1.1, as compared to 1.2 at
December 31, 1999. The Company's  borrowings  decreased  $469,000 since December
31, 1999, largely due to conversions of subordinated debt totaling $870,000 into
common stock of a subsidiary,  Pro Golf  International,  Inc. (PGI), on February
29, 2000. The conversions were at a price of $60 per share of PGI common stock.

The Company is  reviewing  its current  loan  positions  with its  lenders.  The
seasonal loan with Wells Fargo Bank has been extended  through June 2, 2000. The
Company has been unable to comply with certain financial covenants in its credit
agreement with Wells Fargo and has been operating under a waiver with regards to
this non-compliance.  The Company is in negotiations with Wells and is reviewing
with Wells the  covenants  relative to the  Company's  financial  position in an
effort to modify the covenants until the Company's financial position improves.

The Company also is  negotiating  with  Comerica  Bank to extend the bridge loan
obtained  by PGI whe PGI  purchased  Pro  Golf  during  June  1999.  This  loan,
including  extensions,  was due on March 15, 2000 and the Company is reviewing a
proposal from Comerica to extend the loan through May 1, 2001.

During the first quarter of 2000,  the Company's  cash flow from  operations was
negative by $643,000.  This was  attributable to sales decreases at Ajay Leisure
Products,  Inc.,  seasonality of the golf industry, and increased interest costs
due to the acquisition financing obtained when Pro Golf was acquired.

During the past six  months,  the Company  has taken  action to lower  operating
costs by  reducing  its  work  force  and  cutting  certain  other  selling  and
administrative  expenses.  The  Company  continues  to explore  additional  cost
cutting measures and expects, in the near term, to reduce its lease rental costs
by  consolidating  its  golf-related  operatiion into one geographic area. These
changes also are intended to increase efficiency and reduce excess manufacturing
space.  The Company will continue to cut its operating costs whenever  feasible.
Cost  reductions  alone are  unlikely  in the short term to  provide  sufficient
capital to fund ongoing  operations.  Successful  ongoing  operations  also will
require substantial additional capital supported by increased sales.
<PAGE>

The Company needs immediate and substantial capital infusion.  The Company is in
the process of offering for sale, in a private offering,  shares of common stock
of PGI and another indirect subsidiary, ProGolf.com, Inc. These offerings are in
process  and there can be no  assurance  that the current  offerings  will yield
sufficient equity capital for the Company's immediate cash needs. The Company is
considering  various  alternatives  for raising  additionsl  capital,  including
possible acquisitions and dispositions of assets and/or operating  subsidiaries,
joint venture and other types of arrangements.

The Company's  financial  position has continued  over the past several years to
deteriorate  despite  management's  efforts  to cut costs  and raise  additional
capital.  Management  believes that the negative  financial  trend can be turned
around and it is exploring  all viable  options to achieve that end. The Company
is working with its lenders and vendors to achieve maximum flexibility and their
support in the Company's turnaround efforts.

RESULTS OF  OPERATIONS.  During the quarter ended March 31, 2000 the Company had
net sales of  $4,758,000,  a 12% increase  compared to  $4,263,000  for the same
quarter in 1999. This increase was due to the acquisition of Pro Golf of America
during June 1999, which  contributed  $801,000 of this quarter's sales, and also
to a new operating subsidiary,  Prestige Golf Corp., which had sales of $692,000
during  this  quarter.  Without the year 2000 sales from these  entities,  sales
would have been $3,265,000, a decrease of $998,000, or 33%, from the same period
in 1999.

These  reductions  were  primarily in the  Company's  sales to its mass merchant
customers.  Sales of outdoor furniture  decreased by $308,000,  or 13.6%, during
the quarter ended March 31, 2000 as compared to the same quarter in 1999.

The Company had redesigned its bag line for the 2000 season and expected this to
result in increased  sales.  The Company also  anticipated  increasing  its bag,
cart, and accessory sales as a result of the acquisition of Pro Golf of America.
However,  through March 31, 2000  additional  sales  realized have been minimal.
This is partially due to the Company's tight cash flow position,  which affected
Ajay's  ability to source and  manufacture  products at proper price points that
could be delivered on a timely basis.

Gross  profit  for the  three  months  ended  March  31,  2000 was 20% of sales,
compared to 16% for the same period of the prior year. The significant  increase
in gross profit is due to the acquisition of Pro Golf.
<PAGE>

Selling,  general and  administrative  expenses were  $1,474,000 for the current
quarter as  compared  to $851,000  for the same  quarter of the prior year.  The
higher expenses related to the acquisition of Pro Golf. The Company is reviewing
its business  models and  strategies  and  anticipates  taking action during the
second  quarter 2000 which will  significantly  reduce  operating  expenses on a
Company-wide basis.

Interest  expense for the quarter ended March 31, 2000 was $502,000  compared to
$253,000  for the same quarter of 1999.  The  increase was due to the  financing
obtained to enable the company to acquire Pro Golf in June 1999.

Net loss for the quarter ended March 31, 2000 was  $867,000,  compared to a loss
of $462,000  during the same  quarter of 1999.  Due to the  continued  losses of
certain of the  Company's  operating  subsidiaries,  management is reviewing its
business model and expects to reorganize  its  operations  into a leaner Company
with the lower operating  costs. In order for this strategy to be successful the
Company must obtain additional  financing and capital to fund its operations and
growth.

PART II.  OTHER INFORMATION


Item 5.  OTHER INFORMATION.


During October 1999 Pro Golf signed  internationally  known golf pro Gary player
to be  its  corporate  spokesman  through,  at  least,  December  31,  2001.  An
advertising  campaign  featuring Mr. Player is in  production,  targeted at both
increasing retail sales in stores and helping to sell new franchises.  Ajay also
has a license to produce and sell certain Gary Player golf products. Pro Golf is
also planning to begin providing additional services to its franchisees designed
to help them increase sales and become more profitable.

<PAGE>

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


         A) Exhibits:

              27    Financial Data Schedule.


         B) Forms 8-K:

          On July 8,  1999 the  Company  filed a Form 8-K  dated  June 23,  1999
          reporting under Item 2 that it completed its acquisition of all of the
          outstanding  capital  stock of Pro Golf of America,  Inc.,  all of the
          ownership interests in PGD Online, LLC and certain accounts receivable
          and certain other assets of State of the Art Golf, Inc.

          On  September 1, 1999,  the Company  filed a Form 8-K dated August 27,
          1999 to report a change in certifying accountant under Item 4.

          On  September 7, 1999,  the Company  filed a Form 8-K/A dated June 23,
          1999 reporting financial Statements for the Pro Golf acquisition.

<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:   May 22, 2000
     -----------------------------------