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No More Janus Charity Challenge

Frist off, I think it is awesome that RnP are offering to help us out with our fundraising efforts.  That is going way above and beyond!

 

On a not so great note, it appears WTC and Janus have ended their relationship:

http://www.trijuice.com/2010/11/par...n_ends.htm

"Given the deep impact this program has made on so many individuals, nonprofits and communities, we are disappointed to announce that our sponsorship with Ironman will not be continuing in 2011. While the program will remain in effect for Ironman Florida and Arizona in 2010, we were not able to structure an ongoing partnership with Ironman that would be mutually beneficial to both organizations."

I wonder how Ben is going to spin this one???

Comments

  • This is horribly sad!!!! I'm waiting for the other shoe to drop- the community fund slots are next. These guys aren't making it easy to like them.
  • Why not find another way to make a buck? Set up their own charity challenge and skim the admin off the top? I wonder.

     

  • Thus another reason to support independent iron events.
  • Other shoe, dropping...
  • Given the sheer number of people waiting in line to sign up at astronomical prices a year in advance for nearly every event they run, seems to me that they can afford to frustrate some of their customers. The could fill most of their events twice if they wanted to. Not sure how much leverage that leaves anybody who comes to the negotiating table.

    Not saying that I like this situation, but having a hard time seeing how all the backlash is going to actually materially hurt their bottom line...
  • Mike- you are right. They have the upper hand right now and they know it. The only thing folks can do (if they care to do so) is to support folks like Rev3 and Challenge in hopes of bringing more competition to the table.
  • @ Mike - you are definitely correct. But the sport will NOT continue to grow at the torrid pace we've seen. As the boomers fade out of the upper age groups, competitors like Rev 3 and Challenge continue to add new venues, and demographic patterns shift; WTC will face serious challenges. You can't count the number of mighty companies that have fallen or gone completely out of business for not recognizing change, and sometimes for sheer hubris even if they do see the change and don't act. So WTC wins in the short run, but the long run is always questionable, especially if they continue to be arrogant.
  • From what I've seen at races, a core strategy of the WTC model is to look around the expo, their races, the tri space, see who/what is making money or building relationships with their customers, and either buy those people, take them over, or squeeze them out. Consider:

    • Race Day Wheels/Coffee, now Ironman Wheel Rental.com (don't see the coffee)
    • No more InsideOut bike tech in the expo, it's Ironman Bike Tech or something.
    • They took over the CEO Challenge and now it's Executive Challenge.
    • Buying up races and drilling down through the distances, effectively capturing more of their customer's money that was being spend on non-WTC races.
    • I'd bet Steve Ford's paycheck and donut allowance that they are/will talk to TriBikeTransport, either buying him or squeezing him out, taking over that revenue stream.

    I think we are days away from WTC announcing their own charity challenge, or whatever, so they can more directly capitalize on the do-gooder mojo that surrounds fundraising. If you think about it, for years they've been once removed from the mojo of the JCC. This way it can be the ICC and they can directly benefit from that mojo.

    That said, I don't understand why they announced this before having their own program in place, especially considering the recent fiasco of Ironman Access. It's almost like they have a recuring To-Do calendar item scheduled for Mondays that sayd "Fook up something else this week so that we continue to be the bad guys" .

    Only thing I can think of is that JCC jumped the gun and announced the ending of the relationship before WTC was expecting it.

  • Wow, I'm disappointed about this decision. I'm glad I got to do it once.
  • Posted By Rich Strauss on 12 Nov 2010 05:27 PM

    Only thing I can think of is that JCC jumped the gun and announced the ending of the relationship before WTC was expecting it.



    I'm guessing that's gotta be it.  I wouldn't be surprised if Janus was walking away with some ill will over the negotiations (or lack thereof).  There's certainly some acrimony over the Gatorade -> Powerbar drink negotiations at Gatorade, IIRC.  

     

  • I sent an e-mail to WTC yesterday regarding some of these issues and the appearance that WTC's profit maximizing model is jeopardizing long term growth. They were kind enough to me back this afternoon. My main gist was that WTC is failing in the public relations department by not airing major changes before they occur, or going radio silent afterwards like they have with Janus. Their spokesman indicated to me that WTC does not intend to get rid of community foundation slots, in fact, he told me they predated the relationship with Janus by more than ten years. While not giving me specifics, he indicated that it was Janus who walked away from their partnership because WTC would not agree to their stipulations about working with other companies. I'm not sure what that meant and did not press the issue other than to say that with all the changes in the past year, athletes are less likely to give them the benefit of the doubt so they need to explain what is going on. He concurred that 2010 has not been a great year for WTC on the PR front and they are taking steps (?) to make 2011 much bettter.

    On a side note, I asked whether there were any qualification criteria whatsoever to enter the "series finale" in Clearwater for next year's 5150 series. The answer was no, which tells me that we are simply gaining a local late season olympic. I did mention that they would be doing the community a disservice if they ever use "Ironman" in conjuction with these events. The i-dot in the 5i50 logo is their signal that the M-dot will not be watered down at this distance.

    That's pretty much it, but it was a nice gesture for them to call on a Friday afternoon when most of their staff was out in Clearwater for tomorrow's championship. Perhaps they are getting more sensitive to the perception out there.
  • I have hear from JCC directly, via Yano, and they say they have an alternative relationship already in place....or close to it...should be interesting.
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