If the likely bet is its only a matter of time before PTO fades away, how could anyone be so confident that that won’t happen in the next 7 months?
I think it’s in for a good 2-3 year run of 6-10 races a year and putting that product to market. Which as I’ve said, at that point if it fails, so be it. It will fail because no one gives a shit about triathlon not because we didn’t give it the best “college try” possible.
Actually I disagree with this. Strongbro-ly.
The PTO, if it fails it will be the result of missing away it’s seed money to pros who can never have enough. And I like them, don’t get me wrong. But I’ve got a sovereign wealth fund in Saudi Arabia to sell you, if you think that just buying a bunch of pros makes the groundwork for a success. They’ve spent much much more.
If what PTO wants is ownership of the broadcast to sell advertising, again they should buy what they want. The rights to market ITU, or Super League or even 70.3 races.
The things they want to broadcast already exist, the racers are already racing. You don’t need to throw money at them.
If PTO said they were going to buy major primetime TV for these five IM70.3 races or those 5 ITU races and then tripled the prize pot for those five races, you mean to tell me no one would have showed up?
The PTO has wasted millions of investor dollars with ZERO return other than a promise to waste millions more and hope someone takes notice.
Seriously, how terrible must their income statements look? I imagine many local races directors do a better job generating revenue!
It’s understandable that it can take years to become profitable. But it’s not like the PTO is “buying” a large number of cash spending customers who they will eventually make profitable. It’s not like they are building up this massive base of content that will be relevant for decades to tens of thousands of subscribers. The vast majority of their footage will never get looked at again in and significant numbers. No, what the PTO is doing is likely paying its staff well. And buying the rights to 40 athletes that only secures them the option to keep paying those athletes.
There’s nothing coming in! So I think when someone starts with a large pile of money for the good of the sport and only manages to make it small pile of money without bringing anything sustainable in, I see a negligent waste of investor resources that likely salts the earth for future investment.
That doesn’t mean I don’t enjoy the Pto or look forward to their races. I do. I want them to succeed. Whatever they are doing, it’s bizarre. If they stuck with the original line and simply said we are going to make an alternative to Ironman racing for pros and age groupers they’d actually look like they’d be trying to build something.
They’d have been better off buying out local races and growing them from the start and paying the race directors a salary to run the events for them. Instead they pass away money on the pros without building anything sustainable. Bizarre at best. Financially negligent at worst.
Thanks for these views. They are in line with mine. I don’t see anything sustainable being built other than fattening some pro athlete bank accounts (not a bad thing for them). But does the sport end up with something that is sustainable that can survive without investor cash.
If you rewind to 2007 (not really that long ago in sports terms), a bunch of people sat around and looked at an ancient sport (relatively) called cricket…they created a new league based on a young format that could be played in an evening versus over a day or over 5 days, packaged it up and now the league has a market value of $11B
https://en.wikipedia.org/wiki/Indian_Premier_League
The highest value teams in the IPL with greater than $1B market value, have a higher market value than 6 MLB teams, 29 NHL team and all of MLS teams:
https://www.forbes.com/sites/mikeozanian/2022/04/26/indian-premier-league-valuations-cricket-now-has-a-place-among-worlds-most-valuable-sports-teams/?sh=896d98339514
That’s building a sustainable biz from a startup concept, where an old sport is squandering its base.
In the case of triathlon, I doubt it can be a spectator sport like cricket, so it has to build a sustainable stream off participants. How does T100 do that?