Let’s make it possible for athletes to own Ironman.
Enough of the belly aching about WTC.
There are about 150,000 members of USAT with a median income of $126,000
On the back of an napkin I estimate WTC has annual revenue of $69 million.
Offer ProvidenceEquity 2x sales to take WTC off their hands.
Make it an even $140 million offer.
Let’s put a private corporation together with 140,000 shares at $1,000 a piece, and buy the whole damn thing from PE for cash, debt free.
**(“Private”. **No IPO nonsense).
Raise some debt on the back of the earnings to put working capital in the bank. Reorg and hire/re-hire. We’re off to the races with an athlete owned and controlled Ironman. What the heck, maybe fold in Rev3!
Love your idea, but endorsements = $ 5,000,000? I would think they make way more than that will all the IM branded products.
I would venture a guess that like movie theaters, they don’t make all that much (relatively) off of the actual race, once you consider all the ancillary costs, and that the merchandising and licensing is where they make the bulk of their coin.
Yeah…but on second thought, you want 140,000 Type A, ST-types with a *greater *sense of ownership/entitlement? The belly-aching will go up exponentially…
Love your idea, but endorsements = $ 5,000,000? I would think they make way more than that will all the IM branded products.
I would venture a guess that like movie theaters, they don’t make all that much (relatively) off of the actual race, once you consider all the ancillary costs, and that the merchandising and licensing is where they make the bulk of their coin.
John
Fantastic analogy. Ironman probably makes 5x that much on M Dot clothing and merchandise.
Nice analysis I would want to know the EBIDTA number before we offer 2x revenues. Since I bet the WTC has lost some $$ on a few races like IMNYC and others. Also instead of a straight cash buyout lets keep some management intact and offer them an earn out if we/they hit certain revenue/EBIDTA numbers.
I would also like to leverage the balance sheet immediately with some short term debt.
I say keep Rev3 out of the equation sounds like they might be losing $$$. Keep me in the loop when we have all buyers in place.
This sounds great! Can you rerun the revenue numbers for after we add the requirements that you must submit a swim certification for 70.3’s and finish 3 70.3’s before attempting a full? And after we DQ all the 2:00min/100yd swimmers? And everyone who stops running at any point during the marathon? And don’t forget to DQ people for drafting based on pictures posted on the internet!
This sounds great! Can you rerun the revenue numbers for after we add the requirements that you must submit a swim certification for 70.3’s and finish 3 70.3’s before attempting a full? And after we DQ all the 2:00min/100yd swimmers? And everyone who stops running at any point during the marathon? And don’t forget to DQ people for drafting based on pictures posted on the internet!
