Login required to started new threads

Login required to post replies

Prev Next
PTO renews interest in acquiring IRONMAN
Quote | Reply
https://www.endurancebusiness.com/...n-acquiring-ironman/

Quote:
3rd February 2020
Board of Directors, Wanda Sports Group Company Limited
Andrew Messick, Chief Executive Officer, World Triathlon Corporation
Dear Members of the Board:
We are writing on behalf of the Professional Triathletes Organisation (the “PTO”) to advise you that we have closed on our partnership financing with Crankstart Investments. We again want to put forth our proposal to enter into discussions for the acquisition by the PTO of all of the assets of the Wanda Sports Group Company Limited (“WSG”) related to its worldwide triathlon and mass participation business (the “WTC Business”).
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.
The PTO and North Point Advisors, our financial advisors, are prepared to begin discussions forthwith with your senior management and your financial advisors and to sign a customary confidentiality agreement in order to commence certain confirmatory due diligence. In light of the significance of this proposal to your shareholders and the triathlon community, as well as the potential for selective disclosures, we will publicly release the text of this letter tomorrow morning.
We believe this proposal represents a unique opportunity to realise significant value for WSG shareholders and employees, and that the PTO can uniquely provide a healthy and growing environment for the WTC Business.
We hope that you and your Board share our enthusiasm and, consistent with applicable fiduciary duties, we look forward to a prompt and favourable reply.
Respectfully yours,
Charles D. Adamo – Chairman
Sam Renouf – Chief Executive Officer
Rachel Joyce – Co-President
Tim O’Donnell – Co-President
cc: David Jacquin, North Point Advisors, 580 California Street, Suite 200, San Francisco, CA 94104
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [gguerini] [ In reply to ]
Quote | Reply
Probably the only real way for the Collins Cup or whatever it is to survive.

Until you can get Challenge & WTC to play on the same page I doubt you're going to see something like Collins cup thrive.

It would be interesting to see what different overlords would do with the WTC brand. Hopefully the first thing is fix WTC's shitty new website.

Brian Stover USAT LII
Accelerate3 Coaching
Insta

Quote Reply
Re: PTO renews interest in acquiring IRONMAN [gguerini] [ In reply to ]
Quote | Reply
WSG response: “show me the money.”
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [Waingro] [ In reply to ]
Quote | Reply
Waingro wrote:
WSG response: “show me the money.”

"Show me more money than we are worth"

808 > NYC > PDX > YVR
2024 Races: Taupo
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [Waingro] [ In reply to ]
Quote | Reply
It would be interesting to know how much money they want. Wanda bought IM for $650M in 2015.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [gguerini] [ In reply to ]
Quote | Reply
Quote:
without our cooperation the WTC Business would deteriorate.

Sounds like a threat. LOL.

I think Ironman would be far better off it was owned by the PTO.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [EricP] [ In reply to ]
Quote | Reply
It would be interesting to know how much money they want. Wanda bought IM for $650M in 2015. //


Actually it was closer to $900 million, but same ball park..They would be lucky to get 75% of that $650 million now, and with the attached debt, you could almost get it for no money down!!!
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [NordicSkier] [ In reply to ]
Quote | Reply
NordicSkier wrote:
Quote:
without our cooperation the WTC Business would deteriorate.


Sounds like a threat. LOL.

I think Ironman would be far better off it was owned by the PTO.

Without knowing their specific plans; I cannot agree. The PTO would have a huge short run conflict of interest in that their objective is to get as much out of it as they can for their members. This is an organization that is not part of the paying customer base. Seems like they would want to bleed Ironman as much as possible in the form of increased prize money and maybe even appearance fees, but not so much as to kill it completely. What's in it for the average age grouper who is paying the bills?
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [HuffNPuff] [ In reply to ]
Quote | Reply
HuffNPuff wrote:
NordicSkier wrote:
Quote:
without our cooperation the WTC Business would deteriorate.


Sounds like a threat. LOL.

I think Ironman would be far better off it was owned by the PTO.


Without knowing their specific plans; I cannot agree. The PTO would have a huge short run conflict of interest in that their objective is to get as much out of it as they can for their members. This is an organization that is not part of the paying customer base. Seems like they would want to bleed Ironman as much as possible in the form of increased prize money and maybe even appearance fees, but not so much as to kill it completely. What's in it for the average age grouper who is paying the bills?

We get to meet them and race with them.

Indoor Triathlete - I thought I was right, until I realized I was wrong.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [HuffNPuff] [ In reply to ]
Quote | Reply
I agree with your doubts.

UCI regulate World Tour, but they don't own ASO.

Maybe PTO could propose some regulations for athletes revenue (amongst other subjects useful to be regulated), these regulations to be applied by WTC, Challenge, ...

Or do they consider that WTC is too powerful to listen, so they need to buy it to get some influence. I would say yes.
Do you know an exemple of a sport with such an athlete association owning the main race organiser (and then, the regulation) ?
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [desert dude] [ In reply to ]
Quote | Reply
@Desert Dude -

Holy crap! Couldn't agree more. That website, for the lack of a better term, is AWFUL!!!
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [HuffNPuff] [ In reply to ]
Quote | Reply
Completely agree, the PTO owning Ironman is a conflict of interest vs. the age groupers who pay the entrance fees.

So just like the last attempt - just a publicity stunt. But if it worked then Lionel fans would be in heaven since his is on the PTO board now.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [HuffNPuff] [ In reply to ]
Quote | Reply
HuffNPuff wrote:
their objective is to get as much out of it as they can for their members.

As opposed to Ironman trying to get as much as it can out of the athletes? Ok, then.

Also, I thought the American way was to buy companies, bleed them dry until they declare bankruptcy and move on to the next kill?
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [gguerini] [ In reply to ]
Quote | Reply
Aside from ostensibly having enough money to pay the prize money for the Collins Cup, does the PTO have any hard money behind it? I doubt there is much.

This letter is basically a call for a third party to come and mount a bid in cooperation with the PTO. If I was that third party, I wouldn’t want to give up much equity or control to professional triathletes. If we are being honest, how much do they really matter for the Ironman business? Where else are they going to go?

Here is hoping something forces some change at WTC. The crappy website is just one sign of poor management at the company. The customer service is worse than anything you experience with airlines, Amazon, your local dry cleaner, etc. Yes, they put on a good race, but every other way in which they interact with their customers and the triathlon community sucks.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [NordicSkier] [ In reply to ]
Quote | Reply
NordicSkier wrote:
HuffNPuff wrote:
their objective is to get as much out of it as they can for their members.

As opposed to Ironman trying to get as much as it can out of the athletes? Ok, then.

Also, I thought the American way was to buy companies, bleed them dry until they declare bankruptcy and move on to the next kill?

So you are incapable of distinguishing between private equity firms and publicly traded companies? Or between Chinese conglomerates and American owned entities? Ok then.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [Waingro] [ In reply to ]
Quote | Reply
Aside from ostensibly having enough money to pay the prize money for the Collins Cup, does the PTO have any hard money behind it? //

That is the big question, and the way they are going about this whole thing, makes me think not enough. Maybe I'm just not up on acquiring business's, but to just draft a simple letter and then make it public, doesnt seem like the strategy for a real negotiation. If smells of bluster to me, and not a great look for the PTO.


And to the other poster who was worried about bleeding WTC dry, too late. The WSG stock has something like 1.2 billion or so in debt already, so done been bleed dry. Now they are on a drip, drip, drip, to use cash flow to pay off the interest of those in house notes. About the worst thing you could have done to one of our legacy business's has already been done, and not a dime comes back into the sport from that debt and interest payments. So if one was to buy WTC, you would be assuming a huge amount of debt, probably so much that you could nearly get it for no money down, or very little...


I'm really pulling for the PTO, but after seeing the set up for the Collins cup, and now this, makes me really wonder who is pulling the strings and actually setting policy. This may be the last and best bite at the pro union apple, hope they dont fuck it up...
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [monty] [ In reply to ]
Quote | Reply
When you offer cash for real estate the seller expects to see a copy of the bank statement showing the required funds available to use to close escrow. Otherwise the offer isnt worth the paper its written on.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [gguerini] [ In reply to ]
Quote | Reply
Well, current market price is $380M (WSG @ $2.79)... could probably purchase for $500-600M. (WSG @ $4.40)

It's one thing for an handful of Instagram athletes to raise $2M for a big show... it's an other one to raise 300X that amount.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [HuffNPuff] [ In reply to ]
Quote | Reply
HuffNPuff wrote:
NordicSkier wrote:
HuffNPuff wrote:
their objective is to get as much out of it as they can for their members.


As opposed to Ironman trying to get as much as it can out of the athletes? Ok, then.

Also, I thought the American way was to buy companies, bleed them dry until they declare bankruptcy and move on to the next kill?


So you are incapable of distinguishing between private equity firms and publicly traded companies? Or between Chinese conglomerates and American owned entities? Ok then.

No, I'm dumb.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [Waingro] [ In reply to ]
Quote | Reply
Waingro wrote:
WSG response: “show me the money.”

I just read that the guy that owns the PTO is worth 4 billion dollars.

I'd expect to see wanda offload it within weeks

Rhymenocerus wrote:
I think everyone should consult ST before they do anything.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [PJC] [ In reply to ]
Quote | Reply
The market didn't react to the news... are you saying that you bought some stocks (sound like a quick way to make money if true)
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [benleg] [ In reply to ]
Quote | Reply
Smile:

No shares purchased here. Ironman is a fringe sport. Right up there with curling IMO

Rhymenocerus wrote:
I think everyone should consult ST before they do anything.
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [HuffNPuff] [ In reply to ]
Quote | Reply
HuffNPuff wrote:
NordicSkier wrote:
Quote:
without our cooperation the WTC Business would deteriorate.


Sounds like a threat. LOL.

I think Ironman would be far better off it was owned by the PTO.


Without knowing their specific plans; I cannot agree. The PTO would have a huge short run conflict of interest in that their objective is to get as much out of it as they can for their members. This is an organization that is not part of the paying customer base. Seems like they would want to bleed Ironman as much as possible in the form of increased prize money and maybe even appearance fees, but not so much as to kill it completely. What's in it for the average age grouper who is paying the bills?


PTO is an event promoter. They're not an athletes association. They have athletes masquerading as members for sure.

Moritz is a VC guy, they have a five year window to do something and if you read the other announcements on this he put in some capital but shares none of the operational risk going forward.

Quote:
Under its partnership, the PTO and Crankstart Investments share equally in all profits generated by operations.


PJC wrote:
Waingro wrote:
WSG response: “show me the money.”


I just read that the guy that owns the PTO is worth 4 billion dollars.

I'd expect to see wanda offload it within weeks

Wang Jianlin is worth $12.5B. Wanda Group, WSG's majority shareholder has a yearly revenue in excess of $35B.

https://www.businesswire.com/...rtnership-Crankstart

Washed up footy player turned Triathlete.
Last edited by: TheStroBro: Feb 4, 20 16:19
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [gguerini] [ In reply to ]
Quote | Reply
I have interest in buying the White House
Quote Reply
Re: PTO renews interest in acquiring IRONMAN [TheStroBro] [ In reply to ]
Quote | Reply
TheStroBro wrote:

Wang Jianlin is worth $12.5B. Wanda Group, WSG's majority shareholder has a yearly revenue in excess of $35B.

https://www.businesswire.com/...rtnership-Crankstart

True. But he doesnt do the sport. It's about money for him and he is bleeding it a lot lately.

Rhymenocerus wrote:
I think everyone should consult ST before they do anything.
Quote Reply

Prev Next