The sale of the IRONMAN triathlon brand and race series to a Chinese company this week will not impact the World Championship held each October in Kailua-Kona. ADVERTISING The sale of the IRONMAN triathlon brand and race series to a
The sale of the IRONMAN triathlon brand and race series to a Chinese company this week will not impact the World Championship held each October in Kailua-Kona.
That’s according to Diana Bertsch, vice president of IRONMAN World Championship Events.
“In Kona, nothing is going to change,” Bertsch said by phone from Austria, where the 70.3 World Championship is being held this weekend. “It is business as usual and we are going to continue to host the IRONMAN World Championship.”
The sale is likely, however, to usher a rapid expansion of triathlon events into a waiting Chinese market.
Dalian Wanda Group announced Thursday it had purchased World Triathlon Corp. for $650 million. The acquisition will bring “a top international competition to China for the first time,” according to the Chinese private conglomerate.
“Triathlons are on the cusp of explosion in China, with a bright future ahead,” the company said in a statement. “As China enters the ranks of middle income countries, people are paying increasing attention to physical fitness and spiritual fulfillment, and triathlon’s unique charm and challenge is set to attract a large number of people.”
Franz Weber, a longtime IRONMAN volunteer, said he is confident the new owners will not change the events because they are already so successful.
“They have an excellent staff and operation in Kona that has worked really well for years,” Weber said. “For all of these companies, it’s an investment. They look for success and that’s what they got. It doesn’t need to be changed.”
While some mourn the loss of IRONMAN’s local feel as it has grown through nearly four decades, Weber said Wanda’s own media and marketing investments should help boost IRONMAN’s global profile — a good thing for the races.
“This will put a powerhouse behind IRONMAN,” he said. “I see this as a long-term benefit.”
But Steve Borowski, a coach of IRONMAN athletes and the race’s director in 1991, has witnessed several changes in ownership since then and has watched money become increasingly a factor in the race over the years. He guessed the new company would tread lightly the first year, then potentially make changes after that.
“I just pray this isn’t going to change the championship too much,” he said. “The quality and the tradition of the event is what matters most to me. Money should always be second. And it isn’t.”
“It’s a guessing game because no one knows what will happen with this new company,” Borowski said. “Will they try to bring back some of the traditional feel of this event? Or will it just get watered down?”
The entire staff of WTC will remain employed and have signed long-term contracts with Wanda, according to the statement released by company. The acquisition makes Wanda Group one of the world’s largest sports companies.
IRONMAN expects to generate $183 million this year and has enjoyed a compound annual growth rate in revenue of 21 percent over four years.
Rhode Island-based Providence Equity Partners owned the Tampa, Fla.-based WTC over a seven-year period of steady growth, including a rapid expansion overseas. The corporation operates 250 events a year.
The World Championship in Kailua-Kona draws more than 20,000 spectators, and is supported by 5,000 volunteers, according to IRONMAN. Race participants spend an average of eight days on the island, according to one of the corporation’s own studies. The Hawaii Tourism Authority estimated in 2012 that the event’s competitors, companions and spectators spend more than $25 million while they are in the state.
“IRONMAN is an iconic Kona event, one we cherish,” said Debbie Baker, executive director of the Kailua Village Business Improvement District. “Let’s hope that IRONMAN continues to boost our October economy for decades to come.”
