General Discussion Triathlon Talk » IM WI concern regarding future.... Rss Feed  
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2008-09-04 8:40 AM

Iron Donkey
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Subject: IM WI concern regarding future....

I heard on one of our local radio stations this morning that there is some concern for the future of IM WI due to lack of support and sponsorship, and they may take a $20,000 loss this year.  If the lack of support is occurring, then IM WI will not happen (when, don't know) and a new venue will be arranged.

I don't like the sound of that.

 



2008-09-04 9:30 AM
in reply to: #1648654

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Elite
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Subject: RE: IM WI concern regarding future....
How could this be possible if the race sells out almost on site and probably will this year.  That would really suck.
2008-09-04 9:46 AM
in reply to: #1648654

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Pro
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Subject: RE: IM WI concern regarding future....
That is disappointing to hear. I've noticed a lot of local businesses have IM signs and banners up, but I've also been surprised by the amount of people who either don't seem to notice it's happening or don't really know what it is. I hope they are able to find the sponsorship and support to continue because from everything I've heard, it's a very popular race for the participants.
2008-09-04 10:21 AM
in reply to: #1648654

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Sycamore, IL
Subject: RE: IM WI concern regarding future....
This is currently the 2nd year of a five year contract for the event. I remember some rumblings of potential problems with that contract at about year 4 of the first contract but they got it done. I assume that would mean it's a go for the next 3 years anyway. I hate to hear of potential problems because this sure appears to be a well supported event. I've been there every year as a spectator and this is my first as a participant. Hopefully they can keep it going.

-Dave
2008-09-04 11:47 AM
in reply to: #1649029

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Champion
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Subject: RE: IM WI concern regarding future....

I'm sure lots of local people have no idea that the event is going on.. I 'm sure there are lots of concerts, shows, events that come to any town that unless you are really into that type of hobby/entertainment the majority of people are clueless.

I'd think that in any business arangement one or both sides is unhappy about something and wants to redo a contract the next time also

2008-09-04 12:50 PM
in reply to: #1648654

Regular
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New Hope, MN
Subject: RE: IM WI concern regarding future....

I saw this the other day

The nonprofit Wisconsin Sports Development Corp. has put out a call for both to fill in the gaps, in people helping on the course and the cash needed to cover the $100,000 in expenses to put on one of six Ironman races in the North America Sports series.

"Local sponsorship is crucial to hosting the event," said Ron Vincent, chief executive officer of the corporation. "There's many that have come and gone that we'd like to get back.

"Businesses that are benefiting, restaurants and gas stations and all the stores, they aren't participating like they have been."

An influx of sponsorship donations from local businesses will be key to keeping the big-league triathlon in Madison beyond 2011, when the contract between Wisconsin Sports Development Corp. and NA Sports expires, Vincent said.

http://www.jsonline.com/story/index.aspx?id=790246

 

It's all about profit$ 

 



2008-09-04 1:27 PM
in reply to: #1648654

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Master
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Subject: RE: IM WI concern regarding future....
Where are they getting $100,000 in expenses from? Is that in addition to the high registration fees?
2008-09-04 2:18 PM
in reply to: #1649745

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Subject: RE: IM WI concern regarding future....

Offthegrid - 2008-09-04 1:27 PM Where are they getting $100,000 in expenses from? Is that in addition to the high registration fees?

I would imagine that just the city/county permits, renting Monona Terrace, and paying law enforcement personnel to be at intersections is a huge part of it.



Edited by Birkierunner 2008-09-04 2:19 PM
2008-09-04 2:21 PM
in reply to: #1648654

Champion
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Subject: RE: IM WI concern regarding future....

It sounds to me like they are just posturing for more cash from the local businesses that are benefiting from the race.

 "Hey were bringing all these people to town to fill up your hotel, eat at your resturaunt, buy your gas etc... and now we want you to give a little back to us for helping you"

I think this goes on in every event or business deal around.

2008-09-04 2:23 PM
in reply to: #1649992

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Subject: RE: IM WI concern regarding future....
Birkierunner - 2008-09-04 3:18 PM

Offthegrid - 2008-09-04 1:27 PM Where are they getting $100,000 in expenses from? Is that in addition to the high registration fees?

I would imagine that just the city/county permits, renting Monona Terrace, and paying law enforcement personnel to be at intersections is a huge part of it.

It sounds like a shell game to me. Them saying they have all this extra expense for police, permits and all this but not wanting to admit how much revenue a race of this magnatude brings to the local economy which brings tax revenues to the city.

2008-09-04 2:59 PM
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Subject: RE: IM WI concern regarding future....
I'm sure the Badger football game held the day before the race brings in a lot more business than 2,200 skinny athletes


2008-09-04 3:02 PM
in reply to: #1650207

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Elite
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Subject: RE: IM WI concern regarding future....

Birkierunner - 2008-09-04 2:59 PM I'm sure the Badger football game held the day before the race brings in a lot more business than 2,200 skinny athletes

Who you calling skinny?

2008-09-04 3:02 PM
in reply to: #1650207

Iron Donkey
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Subject: RE: IM WI concern regarding future....

Birkierunner - 2008-09-04 2:59 PM I'm sure the Badger football game held the day before the race brings in a lot more business than 2,200 skinny athletes

Probably, due to all the tuition and paycheck money is spent already on the beer during that day.  Not enough volunteers ready to go without hangovers that early in the morning.

2008-09-05 11:08 PM
in reply to: #1650222

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Subject: RE: IM WI concern regarding future....
1stTimeTri - 2008-09-04 4:02 PM

Birkierunner - 2008-09-04 2:59 PM I'm sure the Badger football game held the day before the race brings in a lot more business than 2,200 skinny athletes

Probably, due to all the tuition and paycheck money is spent already on the beer during that day.  Not enough volunteers ready to go without hangovers that early in the morning.

Yeah but "Hair of the Dog" man, they will be back at hard again by mid afternoon and cheering their drunk azzes of til late Laughing

2008-09-06 2:31 PM
in reply to: #1648654

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Subject: RE: IM WI concern regarding future....
It's very difficult, from the outside, to pin down the costs and revenue for a race like this. The privately-held organizer has no reason to make this stuff public, and there must be all kinds of complex negotiations they enter into. This is a business, after all.

But do the math: At (say) 2000 entries at (say) $500 each, that's a million dollars in entry fees--before we start talking about sponsorship money, licensing revenue and who knows what other income

I have no idea what the full budget looks like, but the $20,000 loss mentioned in the OP is a ROUNDING ERROR at best. For all we know there are financial pressures but $20K is nothing--I don't think it could make or break the race.

(Anybody with $20K of spare nothing is welcome to send it my way, of course.)
2008-09-06 6:43 PM
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Subject: RE: IM WI concern regarding future....

It's my understanding that the towns that host IM events have to pony up $100,000 to NA Sports for the right to host the event.  There's some local group that is the local organizer and is responsible for getting the money for NA Sports from local sponsors and is also responsible for getting the volunteers.  So the issue here is probably that no one locally wants to come up with the money.

As far as getting money from the hotels, it's been widely rumored (especially on Slowtwitch) that hotels are being forced to pay if they want to appear on the local hotels list to either NA Sports or the local organizers, hence part of the reason for increased hotel rates during IM week.

NA Sports is a business after all, but one that provides a great product that we all go running after and willingly spend lots of money on... 



2008-09-06 9:11 PM
in reply to: #1655488

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Subject: RE: IM WI concern regarding future....
oceanannie - 2008-09-06 6:43 PM

It's my understanding that the towns that host IM events have to pony up $100,000 to NA Sports for the right to host the event.  There's some local group that is the local organizer and is responsible for getting the money for NA Sports from local sponsors and is also responsible for getting the volunteers.  So the issue here is probably that no one locally wants to come up with the money.

As far as getting money from the hotels, it's been widely rumored (especially on Slowtwitch) that hotels are being forced to pay if they want to appear on the local hotels list to either NA Sports or the local organizers, hence part of the reason for increased hotel rates during IM week.

NA Sports is a business after all, but one that provides a great product that we all go running after and willingly spend lots of money on... 

My question is how hard is NA sports working to get the donations? I know of two large businesses in the city that have never been approached despite having ties to other running events.  It isn't just the hotels and restaurants that need to be approached.

2008-09-06 9:54 PM
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Subject: RE: IM WI concern regarding future....

At IMLP they talked about how much revenue the IM brought into the area and it was over 100 million in last 10 years. I think current year estimates are in the $15-20 million range. Lots of folks go up and train in addition to race weekend.

 

2008-09-07 9:45 AM
in reply to: #1655800

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Subject: RE: IM WI concern regarding future....
SSMinnow - 2008-09-06 10:11 PM
oceanannie - 2008-09-06 6:43 PM

It's my understanding that the towns that host IM events have to pony up $100,000 to NA Sports for the right to host the event. There's some local group that is the local organizer and is responsible for getting the money for NA Sports from local sponsors and is also responsible for getting the volunteers. So the issue here is probably that no one locally wants to come up with the money.

My question is how hard is NA sports working to get the donations? I know of two large businesses in the city that have never been approached despite having ties to other running events. It isn't just the hotels and restaurants that need to be approached.

From what I understand, it's not the responsibility of NA Sports to raise the money- it's the responsibility of the local organizers to raise that money.  So NA Sports isn't going to be looking for sponsors beyond their sponsors for all of their events, it's got to be the locals.   

2008-09-07 9:54 AM
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Subject: RE: IM WI concern regarding future....
My understanding was that NA Sports has a contract with Madison for IM that runs until 2011 or 2012 (?), and then at that time they will determine if the relationship with be re-established or not. I don't think the race is going anywhere until that contact ends. As you can tell by my post, I don't know much about it, so carry on with your discussions...

Edited by LaurenSU02 2008-09-07 9:58 AM
2008-09-07 9:56 AM
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Subject: RE: IM WI concern regarding future....

Yes, but NA Sports is in deep. If they let a race fold over $20K, who loses?  1) The town, 2) the athletes, but probably more importantly, 3) Triathlon, and NA sports.

They have already demonstrated it's a multi-year deal to crank up a new IM venue, much less one with history, great support, and infrastructure to handle it, and in a part of the country that's Tri-Under-served. Plus, it sends a signal to the athletes that even though you pony-up and sell out every event, they could care less, it's not about the athlete, thanks very much. And to the sponsors nationally, it sends signals that NA sports doesn't care if the sport shrinks, as long as they get theirs.  Finally, NAS would have to do without an event for a couple years that, to them, is profitable.

I'll never do an NAS event. Ever. Much like if I didn't have to, I wouldn't belong to USA tri. Two useless organizations, only interested in the the shortest term $$ possible. Reminds me of boxing promoters, and look where boxing is today (no rip on boxing, but when governing bodies and event promoters clash, it frustrates the public and people move on).



2008-09-07 10:00 AM
in reply to: #1656137

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Subject: RE: IM WI concern regarding future....

Wow, Rick, those are some passionate words.

LOL - I just pay my fees, train, and race. I prefer not to follow any of this stuff; I think I stay happier that way. Haha .

2008-09-07 10:06 AM
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Not a Coach
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Subject: RE: IM WI concern regarding future....
rkreuser - 2008-09-07 10:56 AM

Yes, but NA Sports is in deep. If they let a race fold over $20K, who loses?  1) The town, 2) the athletes, but probably more importantly, 3) Triathlon, and NA sports.

They have already demonstrated it's a multi-year deal to crank up a new IM venue, much less one with history, great support, and infrastructure to handle it, and in a part of the country that's Tri-Under-served. Plus, it sends a signal to the athletes that even though you pony-up and sell out every event, they could care less, it's not about the athlete, thanks very much. And to the sponsors nationally, it sends signals that NA sports doesn't care if the sport shrinks, as long as they get theirs.  Finally, NAS would have to do without an event for a couple years that, to them, is profitable.

I'll never do an NAS event. Ever. Much like if I didn't have to, I wouldn't belong to USA tri. Two useless organizations, only interested in the the shortest term $$ possible. Reminds me of boxing promoters, and look where boxing is today (no rip on boxing, but when governing bodies and event promoters clash, it frustrates the public and people move on).

I don't think you really understand much about either organization. 

You don't have to do an NAS event if you don't want. You don't have to belong to USAT either (except 1-day licences for racing most events).  But if you don't think the organizations care about the development of the sport, you really don't know much about them or the people involved.  Of course, it's very much a business for NAS as well.  They are not a non-profit.  But they've earned their money by investing a ton into their events and the sport.

 

2008-09-07 10:23 AM
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Subject: RE: IM WI concern regarding future....

There are a bunch of corporations out there that are providing an extremely popular product that are blatent about putting profits before the consumer. (Microsoft and Exxon/Mobil come to mind)

The only way to fight back is pretty much on an individual level, like Rick said.  It probably won't have much impact that he doesn't do another NAS event, but he certainly isn't contributing either, and that can be very comforting to one's conscience.

On the othere hand, if you love the product, you continue to use it and it serves your needs then you are much more likely to forgive the greed aspect.  It is a business after all and its ONLY goal is to make money.

2008-09-07 10:44 AM
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Subject: RE: IM WI concern regarding future....
MikeJ - 2008-09-07 11:23 AM

There are a bunch of corporations out there that are providing an extremely popular product that are blatent about putting profits before the consumer. (Microsoft and Exxon/Mobil come to mind)

The only way to fight back is pretty much on an individual level, like Rick said.  It probably won't have much impact that he doesn't do another NAS event, but he certainly isn't contributing either, and that can be very comforting to one's conscience.

On the othere hand, if you love the product, you continue to use it and it serves your needs then you are much more likely to forgive the greed aspect.  It is a business after all and its ONLY goal is to make money.

That's an interesting opinion about business in general.  One in which I entirely disagree with.

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