PTO renews bid interest in Ironman from WANDA
PTO makes another move to engage WANDA, more info here: https://spark.adobe.com/page/6dE33oDJ52ERL/
Super interesting to watch this play out; can there be more self-determination In our sport?
The PTO is prepared to consider an all-cash transaction or one in which the existing shareholders of WSG are able to participate in the growth of the WTC Business that the PTO is uniquely positioned to deliver. We strongly believe that it is only with the assistance of the PTO and its professional athletes that the WTC Business has the ability to stabilise and grow, and that without our cooperation the WTC Business would deteriorate. We are happy to work with any other financially stable group who may be interested in acquiring the WTC Business, reducing its debt load and unleashing the value only the PTO and its professional athletes can deliver.
Comments
If PTO is truly "...happy to work with any other financially stable group who may be interested in acquiring the WTC Business..." they might consider opening up their organization to all members of the triathlon ecosystem, who have a vested interest in the on-going success and growth of long-distance triathlon. Age-groupers, coaches, manufacturers, retailers, etc. etc. Quite a large and potentially affluent collection of potential owners...
But then, I spent all my working years in a multi-billion $ consumer healthcare cooperative, so that's just the way my mind works - let the users own the system!
World Triathlon Cooperative.
Like the Green Bay Packers!!!
BTW, I did share my thoughts in the relevant thread on Slowtwitch, but that's as far as I would push it; my organizing days are over.
my gut tells me that like most high vis properties, a smart PE buyer who is likely a Tri-geek at heart, will pick up WTC assets at a fraction of their worth given that Wanda needs cash because as I know it, their other operations are bigger and losing more cash. Plus, it is likely the Chinese Gov't is clamping down on the flight of capital outside of China.
Have to remember that the big skiing COs, Epic/Vail, Alterra/KSL, etc are all PE guys who are passionate skiers. Providence Equity Partners, the prior owner for a long time, was headed by a tri-geekery guy as well. Sadly, all good assets end up in the hands of the PE guys, but you often see these types shepherded by people with a genuine interest in the underlying business.
Wanda is asking $1B (see article below); more than 3 times the company is worth. There will be no takers at that price. One thing is clear, Providence Equity really played Wanda for the fool. Wanda now has two options. Sell Ironman at a huge loss and take the write-off, or hang on to it for a decade or more until they can pay off the debt load.
I don't trust PTO as far as I can throw them, but it will be interesting to see how this plays out. Meanwhile, both Challenge and Ironman are supposed to announce new North America events this week.
https://www.bloomberg.com/news/articles/2020-02-17/wanda-sports-is-said-to-mull-sale-of-ironman-triathlon-business?fbclid=IwAR2MIXWvOBhxrbKCQcoGtNHlgqa576yoRHTCmSfg82PJWlD2IWy87psedCM
My mom is an owner! She's been to the shareholder meeting!
Ironman BOUGHT!!!
https://www.endurancesportswire.com/advance-to-acquire-the-ironman-group-from-wanda-sports-group/
Are you thinking, perhaps, of a co-op model like REI?
@Rich Stanbaugh Exactly. But more precisely, I worked for/with a Consumer cooperative health care delivery system/health insurance company called Group Health Cooperative of Puget Sound for almost my entire career. Owned and governed by the users. A successful business with annual revenue of $2B in the '90s, 600,000 enrollees, 8000 employees, etc. Non profit co-ops like GHC and REI (another Seattle institution) can be just as successful as for-profit businesses if professionally managed. Without the stigma of "screwing the customer" which some see in the world of PE capital.