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The Endurance Sports Race & Event Business - Where Things Are At
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I've held off on this post here for some time, hoping on hope that there would be good news to report - there really is not any.

As you all know the WHOLE of the Endurance Sports Race/Event Business (running, cycling & triathlon) world wide has been completely shut down! Yes - some Pro level racing, and the odd obscure smaller race/event is starting to come back, but garden variety, running cycling and triathlon races/events, for the masses, for 500, 1000, 2,000, 5,000, 10,000, 20,000 or more entries and participants are NOT happening.

Here's the even greater frustration - no one knows when things will get back to "normal" - whatever that is. No one knows when Gov'ts will start to issue permits for these sorts of races/events. In North America - most of 2020 will be a complete wipeout.

2021 seems like a long way off, but in reality if you are an organizer of a mid-sized to larger, running, cycling or triathlon race/event - 2021 is here already! This is the time of the year, when sponsorships are finalized, permits are applied for, and registrations start to open up for the following year. But with no one knowing what will be going on in 2021 - everyone is in limbo! That being said, the people in this business are Planners - many are hoping and planning for the best, but also planning for the worst.

2020, as you can well imagine has been REALLY challenging for everyone in the business. IRONMAN laid off a bunch of people two weeks ago and the New York City Road Runners (organizers of the NYC Marathon and many other races/events) let go 20% of their staff last week! Several notable Race/Event Organizing companies have already shut their businesses down completely. Many smaller races/events, have disappeared!

This is a poorly understood business, it's reasonably small in size but punches WELL above it's weight. It's estimated that in North America in all the running, cycling and triathlon races/events across the Continent that over 50 million people participate every year in a race/event of some kind. There are multiple $billions in economic impact generated, and here's a biggy - multiple $billions in funds raised for various charities. In fact, in the past 10 years, it's not uncommon now for small to mid sized charities, to have as their single biggest fund-raising event in a year be a running, walking or cycling race/event!! 3/4s of 2020 shut down, and who knows what in 2021?? So all that economic impact and the charitable fund raising does not happen! (Another ripple - effect - many charities are on the brink and I'm told there have been BIG lay-offs already in the not-for-profit sector)

For me personally, as a vendor/supplier in the business (Race/Event Announcing, Emceeing and Commentary) - almost the whole year, all my work, and all my income scrapped! I'm just a one-man show, but if the operators, the race/event organizers are not putting on their races/events, there is a ripple effect in the vendor supplier business sector as well - barricades, porta-potties, T-shirts, Pop-Up tents, Sound Companies etc . . . all their business hugely negatively impacted

If 2021 does not happen, the consequences could actually be quite dire - there may be few if any companies left to put on races/events in 2022, or whenever the green-light is given.

I just thought it would be helpful for y'all to know what's been going on behind the scenes!

Sorry for all the grim news. I truly wish that it was better!

Comments, input, questions, welcome!


Steve Fleck @stevefleck | Blog
Last edited by: Fleck: Aug 12, 20 12:59
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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As a former sports apparel manufacturer, event organizer and race sponsor I've been giving this an awful lot of thought and am frankly surprised there hasn't been more chatter on this here.

As someone who knows you personally from that former life, I hear your pain and angst and wish you safe harbour until things return to normal - which they inevitably will, as much as the media and hand wringers and dystopians want to talk about how "everything has changed" and "the world will never be the same."

I actually believe that the near (even if that means 1,2, 3 year +) future holds a renaissance for endurance sports, fitness, outdoor recreation and wellness in general. People have had little else to do but go outside to burn off excess energy and little choice but to look for local market outdoor recreation options to change the scenery. And the leading indicators are showing that as well. Supply chain discussions aside, try finding running or biking gear in stock. All that's left is remaindered sizes and (focus group of one) the shops I visit are backordered - and now online seems to be running out of stock as well. Bike shops are booming and prices are even rising in the resale market. Even the kayak and SUP market is killing it and I've never seen so many new people entering the power and sailboat market. Not to mention the whole "health food," yoga, mindfullness, micro-dosing and whatever other wellness trip one can think of that's getting a boost right now...

So, what does all that have to do with tri, aerobic, ultra, etc., activities? I think that as we come out of this, it will be like jogging in the 70's, mtb and tri in the 90's, etc. and there will be a future boom awaiting event organizers as not only will there be huge pent-up demand by existing participants, but there's very likely going to be a huge new audience who are honed, equipped, and itching to take their new skills and bodies to the next level.

The challenge for people like you and I who have been around this for a very long time - as well as for the people who have actually found their way to this forum - is that we're thinking in terms of comparisons to the past and not asking the crystal ball about potential opportunities yet to come.

The very sad truth is that in the meantime many hardworking people will be hurt and more than we'd like to think about will go out of business. However, new energy, ideas and companies will eventually fill the void and that will ultimately be healthy and good - like a forest fire that burns old growth so that fresh new bush can grow. And for all the talk here of dominant marquees like IM, etc., going bust, should that happen their assets will be purchased by new owners or they will ultimately be replaced. But, like that forest fire, it's going to get ugly. And there will be tears.

There is a very real opportunity - right now - for people to start stepping-up with new ideas that exend beyond lame-ass, cash grab "virtual" events. There are no safety or medical reasons small, well thought-out and managed, unsanctioned, guerrilla events (and I'm endorsing this as someone formerly involved in sports governance) can't be conceived and executed in ways that represent less or comparable risk than going out for dinner or riding the subway.

New experiences can be created. New brands can be birthed. Individuals can take it upon themselves to build and new communities. Existing companies can innovate and find workarounds - and most importantly, really, really lean in on their customer service - which is sorely lacking right now.

Some will be inspired and take advantage of reduced competition and competitors too scared or confused to act. They will be rewarded with being the "next big thing" when life as we know it returns.

Best to you.

“Barn’s burnt down. Now I can see the moon.”
- Mizuta Masahide
Last edited by: insulinpower: Aug 12, 20 20:30
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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Predicting the future, even near-term, seems foolish at this point, as there's just way too much uncertainty. Undeterred by that reality, however, it is hard for me to imagine how large scale events (major marathons, Peachtree Road Race, Ironman races, ...) can happen in 2020 or 2021. Too many people jammed too tightly together.

But I do think there's a great opportunity for smaller events. A smaller outdoor triathlon with a time trial start, widely spread out transition area, and socially distanced awards ceremony should be reasonably safe. Smaller running races that switched to a time trial start should also be fine so long as the runners could be sold on time trial style racing. Could this lead to a resurgence in small local races at the expense of the major brands? I'm at all sure I'd be disappointed in that outcome.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [insulinpower] [ In reply to ]
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Fully agree and I believe zwift racing will make it to the olympics in e-racing eventually.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [insulinpower] [ In reply to ]
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As a former sports apparel manufacturer, event organizer and race sponsor I've been giving this an awful lot of thought and am frankly surprised there hasn't been more chatter on this here.

As someone who knows you personally from that former life, I hear your pain and angst and wish you safe harbour until things return to normal - which they inevitably will, as much as the media and hand wringers and dystopians want to talk about how "everything has changed" and "the world will never be the same."



Thank you for note, your thoughts, our previous connection, and your kind words of support.

It is indeed the classic, glass half empty/full, situation and I was talking more from the glass half empty perspective in my post.

In times of massive wholesale disruption, there are often significant opportunities and progressive ways forward. There are some interesting things going on behind the scenes - and there will be opportunities.

There have been some pleasant silver linings - as you noted, bike sales and the sales of ALL outdoor sports and recreation equipment has massively boomed. I recall talking to some good friends, who own bike shops in mid-March. At that point they were expecting a disaster - little did they know they, are now headed to perhaps there best year ever in business!

In my own neighborhood - that classic outer suburban area where normally everyone drives everywhere, and you see few if any people, walking, cycling or running - it's been insane! Walkers, runners and cyclists all over the place! When we get to the other side of this, hopefully we can convert on some of this and get these people into a running, cycling or triathlon race/event. That would be good news - the overall participation numbers in races/events in running, cycling and triathlon had been on the decline for 5 - 6 years.

On a personal note - I have had to re-invent what I can offer and how I can do it. I in vested in hardware and software for a "Home Studio" and have been doing a whole series of Content Interviews for Clients, Moderating Town Halls for others, and a month ago Emceed a large Conference for over 800 people - all done remotely from my "Home Studio". There are some glimmers and embers of hope that this might grow into something bigger. In fact, this week, I had a conversation with a new streaming broadcast platform, about a rather significant opportunity with them. Not sitting around idle!

Thanks, again for this.


Steve Fleck @stevefleck | Blog
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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I think many of us are watching from the sidelines and thinking a lot about this. At least I have been.

I don't talk much about it outside of my friend group because there is not much information being shared by the companies (so it's just gossip and that's not helpful) and I don't want to be a debbie downer. I wish I was optimistic about the success of these race production companies.

Honestly though - while I hate to say this - I personally don't see a way that any live-event only company is going to survive without a year (or more) of revenue especially any company that already had any significant debt.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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One of the concerns might be future participants.

I have three children all excellent at sports.
Good swimmers, great bikers and one a first class runner and I can't give away a race bike to any of the three.
Two have done Tri's (but not for over a decade)

They have all entered the age that usually fills the AG slots. They have gone to other interests, everything from curling, climbing, canoeing to raising children (or planning them). If this sport loses the interest of a generation because something else (pokemon god help us) has sparked that interest, then it will gradually erode into a niche sport and that will be that.

Most of the big players in organizing (and announcing :0)) are not spring chickens and current economics doesn't encourage the lifestyle this required to get the sport up and running. And while I am not sorry to see China out of the WTC (for Canadian reasons) that population base would have encouraged the sport for years to come.

If 2021 is also a write off, then it could get dicey.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [michael Hatch] [ In reply to ]
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"I have three children all excellent at sports.
Good swimmers, great bikers and one a first class runner and I can't give away a race bike to any of the three.
Two have done Tri's (but not for over a decade)"


Michael,

What turned them off or away from triathlon. What would bring them back?


Steve Fleck @stevefleck | Blog
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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It’s sad to watch what’s happening with so many businesses. But I think that the sports event business is kind of like the restaurant business. Many of them may go out of business but once we get past the Covid era, there is still going to be demand for restaurants. Two years from now my guess is that there are just as many restaurants in business, it’s just that a lot of them are new businesses that replaced ones that went out of business.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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For Premier Bike it’s a mixed bag.

I had completed all the CAD drawings and designs for a lot of new products in January and was looking forward to meeting with suppliers at the March show in Taiwan. That got cancelled- book another trip for May which also got cancelled and I just had to cancel my September trip. So we are looking at late spring 2020 at the earliest for new products and inventory.

I learned a long time ago that I had to see and approve all prototypes in person before going into production so I’m just going to wait until travel is approved. I’m not willing to take a chance on quality or design margins and bring in new product right now.

We were lucky to have sold almost all of our inventory in 2019. So sitting in cash is better than looking at boxes in a warehouse. I just don’t know right now so I’ll wait and see like everyone else.

I had already committed to a big travel case production run in anticipation for 2020 late season events so I’ll sit on some of those for a while.

For a small company like ours it just a wait and see situation. I’ll keep everyone paid until we can move forward again.

Dan

Dan Kennison

facebook: @triPremierBike
http://www.PremierBike.com
http://www.PositionOneSports.com
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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Hey Steve, when the sport first started off there were only smaller events. Aside from first Hawaii, then Nice, then USTS...everything else was local.

Ironman kind of cannibalized the local scene events. Maybe from this a lot of local events emerge and I hope those who have grown up only with a target of WTC races will grow to enjoy the local events which also creates a great local social group from which training partners emerge.

There is another thing that is happening. With no races around, what you will see is those who emerge from this actually have an interest in doing these sports that has nothing to do with race. When you get a critical mass of that type of "customer" you have more customer loyalty....they are not in it for the race, they are gonna do the sport anyway, and an outcome of just training to train is this is a strong base of customer who will show up to race....they are not the one and done crowd, they are the people who will come back again and again and again.

There are many who are getting into running and cycling just because gyms are closed. Many will enjoy it and just stick with it after this pandemic is behind us and from this group of new active population, many new endurance sports types will emerge for sure, and they are likely going to be better customers for this sport than the one and done bucket list folks who did it just because of a finish line and a medal. The people who do these activities now for no other reason than personal fulfillment and exercise will be great clients for this sport moving forward.

Intially the local scene with small events with no travel can flourish. There is pent up demand that they will be able to access. Big events, that's another story. Let's hope some vaccines can work and get us back to some semblance of normal life.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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Steve. I'm sorry this is wiping out much of your 2020 but I am glad to hear you aren't completely resting on your laurels. I don't have much to add but I will say that Fred Sommer of Sommer Sports down here in Florida has still been putting on some events. Seems like they have been going pretty well based on a few friends I follow and their participation. Florida, and Clermont more specifically, is a great place to race all-year round. I haven't yet hopped in to an event down here this year but hope to before the year is over.


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Last edited by: Thomas Gerlach: Aug 13, 20 21:20
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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Fleck wrote:
"I have three children all excellent at sports.
Good swimmers, great bikers and one a first class runner and I can't give away a race bike to any of the three.
Two have done Tri's (but not for over a decade)"


Michael,

What turned them off or away from triathlon. What would bring them back?

Speaking for my sons. Both raced kids tri's for years and then adult races until the older one was about 18 and younger one about 15. The older one was very good, they younger one was "ok".

For the older one: He graduated, (no more swim team), got a job working summer's after his junior year of HS that included weekends. Hard to race when working weekends.

For the younger one: He started Fencing and loves it.

The really early mornings also became "less fun" for both of them.

I could see my older one getting back into it after graduating college and having a job without weekend work depending on where he settles down. I don't see the younger one ever coming back.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [devashish_paul] [ In reply to ]
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That's huge right there Dev. Indeed - really getting deep as to WHY people do this!

Agree also on the smaller (way smaller) local events. Something like they have in Track & Field - they call them "All Comers Meets". Usually put on by a local club. I get it that triathlon is a bit more complicated, but if you strip it down to it's barest essentials - it can be pretty simple.

Barrie Shepley is doing exactly that in the Toronto area. Really simple swim-bike-run for at most 50 people.


Steve Fleck @stevefleck | Blog
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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while not strictly events, racing, or promotion, I can speak to my small small business which is completely shut down. Pretty much no fitting whatsoever. Initially, all of my bandwidth was dedicated to homeschooling my kids. Then, during the summer, I sort of took a breather and focused on self-care instead of rebuilding business. Now, as remote school looms again, I'm gearing up mentally for another semester of homeschooling, thus business has pretty much dropped by the wayside.

I'm definitely feeling it, noticing the lack of income. Not sure what else to do though... kids are young and need the supervision.

Eric

Eric Reid AeroFit | Instagram Portfolio
Aerodynamic Retul Bike Fitting

“You are experiencing the criminal coverup of a foreign backed fascist hostile takeover of a mafia shakedown of an authoritarian religious slow motion coup. Persuade people to vote for Democracy.”
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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Fleck wrote:
That's huge right there Dev. Indeed - really getting deep as to WHY people do this!

Agree also on the smaller (way smaller) local events. Something like they have in Track & Field - they call them "All Comers Meets". Usually put on by a local club. I get it that triathlon is a bit more complicated, but if you strip it down to it's barest essentials - it can be pretty simple.

Barrie Shepley is doing exactly that in the Toronto area. Really simple swim-bike-run for at most 50 people.

I have been doing a "weekly world championships" with a few friends...probably time to expand it to a few more, but that's not an industry, its not even a cottage industry. But if enough people train for the sake of training and not bucket list finish lines only, and have weekly world's with friends for the sake of doing sport and friendly competition, there will be enough to fill local events which SHOULD flourish. I know Adam and Christine at Somersault Promotions locally plan to restart for a full local series next year. Maybe with no Mdot racing, we get more people at the local events and when you get the same people showing up locally rather than head across the country for Mdot stuff (and skip local events) the local ones can flourish more because you get more of that community feel evolving week over week.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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What turned them off?

Could be because I do it ;0(

What would bring them back.

Stipulation for inheritance?


But seriously folks......two of them are in canoes up north this weekend,
Separate canoes, different lakes, and companions, (so they don't take after their mother...;0)
Maybe I should work on getting the girlfriends to do Tri


Wish I had a serious answer.


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Re: The Endurance Sports Race & Event Business - Where Things Are At [devashish_paul] [ In reply to ]
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I know Adam and Christine at Somersault Promotions locally plan to restart for a full local series next year. Maybe with no Mdot racing, we get more people at the local events and when you get the same people showing up locally rather than head across the country for Mdot stuff (and skip local events) the local ones can flourish more because you get more of that community feel evolving week over week.


Smaller Operators, like Somersault, may be in a better situation than mid to large sized businesses and Operators in the space, because they may be able to "hibernate" or shutter the business, and then open it back up, when we really get the green light again.

They will be the first ones, at the grass-roots level, and be on the front line of a possible surge in running, cycling and triathlon race/event participation, when we do get to the other side, with a conversion of some or many of these many people all out, running, walking and cycling - because of the pandemic!


Steve Fleck @stevefleck | Blog
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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Yes Steve! I like that attitude. Here's hoping the folks buying the all-purpose bikes and other such gear today are on our starting lines tomorrow (whenever tomorrow comes).

Here's a great chance for our local tri-clubs and provincial organizations to do some important and visionary work.

http://www.fitspeek.com the Fraser Valley's fitness, wellness, and endurance sports podcast
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Hydrosloth] [ In reply to ]
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Here's a great chance for our local tri-clubs and provincial organizations to do some important and visionary work.


Agreed - but with all due respect - past track records on this front from PSOs and the NSO for triathlon have not been that great!

Certain clubs and races, 100% yes. In fact, I Hosted and Emceed an event a couple of years ago, for a Race Client, that was specifically geared for first time triathletes - people who had never done a triathlon before. It was refreshing because the word "ironman" never ounce came up for the 90 minutes of the formal part of the event and the Q & A portion!


Steve Fleck @stevefleck | Blog
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Re: The Endurance Sports Race & Event Business - Where Things Are At [insulinpower] [ In reply to ]
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insulinpower wrote:
As a former sports apparel manufacturer, event organizer and race sponsor I've been giving this an awful lot of thought and am frankly surprised there hasn't been more chatter on this here.

As someone who knows you personally from that former life, I hear your pain and angst and wish you safe harbour until things return to normal - which they inevitably will, as much as the media and hand wringers and dystopians want to talk about how "everything has changed" and "the world will never be the same."

I actually believe that the near (even if that means 1,2, 3 year +) future holds a renaissance for endurance sports, fitness, outdoor recreation and wellness in general. People have had little else to do but go outside to burn off excess energy and little choice but to look for local market outdoor recreation options to change the scenery. And the leading indicators are showing that as well. Supply chain discussions aside, try finding running or biking gear in stock. All that's left is remaindered sizes and (focus group of one) the shops I visit are backordered - and now online seems to be running out of stock as well. Bike shops are booming and prices are even rising in the resale market. Even the kayak and SUP market is killing it and I've never seen so many new people entering the power and sailboat market. Not to mention the whole "health food," yoga, mindfullness, micro-dosing and whatever other wellness trip one can think of that's getting a boost right now...

So, what does all that have to do with tri, aerobic, ultra, etc., activities? I think that as we come out of this, it will be like jogging in the 70's, mtb and tri in the 90's, etc. and there will be a future boom awaiting event organizers as not only will there be huge pent-up demand by existing participants, but there's very likely going to be a huge new audience who are honed, equipped, and itching to take their new skills and bodies to the next level.

The challenge for people like you and I who have been around this for a very long time - as well as for the people who have actually found their way to this forum - is that we're thinking in terms of comparisons to the past and not asking the crystal ball about potential opportunities yet to come.

The very sad truth is that in the meantime many hardworking people will be hurt and more than we'd like to think about will go out of business. However, new energy, ideas and companies will eventually fill the void and that will ultimately be healthy and good - like a forest fire that burns old growth so that fresh new bush can grow. And for all the talk here of dominant marquees like IM, etc., going bust, should that happen their assets will be purchased by new owners or they will ultimately be replaced. But, like that forest fire, it's going to get ugly. And there will be tears.

There is a very real opportunity - right now - for people to start stepping-up with new ideas that exend beyond lame-ass, cash grab "virtual" events. There are no safety or medical reasons small, well thought-out and managed, unsanctioned, guerrilla events (and I'm endorsing this as someone formerly involved in sports governance) can't be conceived and executed in ways that represent less or comparable risk than going out for dinner or riding the subway.

New experiences can be created. New brands can be birthed. Individuals can take it upon themselves to build and new communities. Existing companies can innovate and find workarounds - and most importantly, really, really lean in on their customer service - which is sorely lacking right now.

Some will be inspired and take advantage of reduced competition and competitors too scared or confused to act. They will be rewarded with being the "next big thing" when life as we know it returns.




Best to you.

“Barn’s burnt down. Now I can see the moon.”
- Mizuta Masahide


that i s a very good post
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Re: The Endurance Sports Race & Event Business - Where Things Are At [insulinpower] [ In reply to ]
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I think recreational participation has exploded. My 2 hobbies are kayaking and mountain biking.
Kayaks are hard to come by and people are reselling them for 2x-3x their retail price.
I see way more people out biking in the neighborhoods and on the trails.
I hope this trend continues.
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Re: The Endurance Sports Race & Event Business - Where Things Are At [Fleck] [ In reply to ]
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Fleck wrote:
I know Adam and Christine at Somersault Promotions locally plan to restart for a full local series next year. Maybe with no Mdot racing, we get more people at the local events and when you get the same people showing up locally rather than head across the country for Mdot stuff (and skip local events) the local ones can flourish more because you get more of that community feel evolving week over week.


Smaller Operators, like Somersault, may be in a better situation than mid to large sized businesses and Operators in the space, because they may be able to "hibernate" or shutter the business, and then open it back up, when we really get the green light again.

They will be the first ones, at the grass-roots level, and be on the front line of a possible surge in running, cycling and triathlon race/event participation, when we do get to the other side, with a conversion of some or many of these many people all out, running, walking and cycling - because of the pandemic!

I hope you are right and the local smaller events and series are the first to spring back. On that note Danny McCann still has Esprit/Demi Esprit/Olympic going on in Montreal on 12-13 Sep....debating heading out. I am in shape (maybe need to get out and bike a bit more).
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