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2013-03-12 6:28 PM

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Subject: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

This is worth a listen - regardless of what you think of him as a coach/person - his idea is a bit blue sky and idealistic but would you be prepared to 'buy out' WTC?

http://www.imtalk.me/home/2013/3/11/imtalk-episode-352-brett-sutton.html



2013-03-13 2:57 PM
in reply to: #4657315

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

Was able to half-listen to this today. For all of those wanting the executive summary, what he is proposing is a model that is similar to Barcelona FC, where season-ticket holders own the club. They don't run the club, but they have the ability to fire/hire management every year. 

Athletes wouldn't run the club (and he says athletes wouldn't know how if they did), but they could control the overall direction of the company (and hence, the sport)

 

 



Edited by chris00nj 2013-03-13 3:02 PM
2013-11-14 9:22 AM
in reply to: jobaxas

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
It is worth a listen. It is long and the first half is pretty rambling. I was foam rolling while I listened and at first I kept thinking ... i don't understand ... what is the problem ... what are you proposing ... but he does get around to it very close to the end.

It is hysterical to "watch" the video because there is a cleaning lady walking around behind him. So funny. Total opposite of the refined-polished- pr nuggets we are used to.

It is - of course impossible to say whether this idealistic view could catch on. I'm pretty sure he can make it work on his races but will others follow his lead? Who knows. I guess we'll see.

2013-11-14 9:42 AM
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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Originally posted by jobaxas

This is worth a listen - regardless of what you think of him as a coach/person - his idea is a bit blue sky and idealistic but would you be prepared to 'buy out' WTC?

http://www.imtalk.me/home/2013/3/11/imtalk-episode-352-brett-sutton.html




Its an interesting, refreshing, and possible concept. But I think most, myself included, will not give Sutton $100 with his "vision". The guy is very intelligent and knows the sport very well, but logistically I don't see this working out.

Buying out WTC? They are always for sale, its owned by a private equity so Sutton is not the only one looking to make the purchase, infact WTC is in talks with a sale as we speak.

Edited by bcagle25 2013-11-14 9:46 AM
2013-11-14 10:16 AM
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2013-11-14 10:19 AM
in reply to: Fred D

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

Originally posted by Fred D

I think Sutton is over-estimating how unhappy people are currently with WTC. I also think he is over-estimating the idealism of ironman distance triathletes in regards to the ironman series/races.

I could be wrong though.

I would agree.....I also think he is underestimating how screwed up a company owned by 60,000 egomaniac type-A personalities would be.



2013-11-14 10:22 AM
in reply to: Left Brain

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2013-11-14 10:45 AM
in reply to: Fred D

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

Originally posted by Fred D

Originally posted by Left Brain

 

I would agree.....I also think he is underestimating how screwed up a company owned by 60,000 egomaniac type-A personalities would be.

I don't think I would use quite the same description as you, but in essence I agree. The problems with IM racing (at least many of them) boil down to the personalities of the types of people that do these races. While WTC sure ain't 'perfect', I seriously doubt it would be possible to make the lot of us happy most of the time. Higher levels of entitlement, income and expectation make the ironman crowd a lucrative, but difficult group to satisfy.

*I* don't think it is easy to run WTC, nor would I want to as my life is PLENTY busy enough as is.

Completely agree, and overall I don't think people are that unhappy with WTC. I've seen what happened when the Competitor Group took over the Philly Tri and Philly Half Marathon, and it's a mixed bag, but mostly worse. The grass is always greener, you know.

2013-11-14 11:10 AM
in reply to: BrianRunsPhilly

Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Jeez, from sellout rates if the average "IM athlete" could control the direction of WTC we'd end up with all flat courses. No thanks.
2013-11-14 11:32 AM
in reply to: ChrisM

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Originally posted by ChrisM

Jeez, from sellout rates if the average "IM athlete" could control the direction of WTC we'd end up with all flat courses. No thanks.


And the wetsuit cutoff would probably go to 90F...

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2013-11-14 12:39 PM
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2013-11-14 12:51 PM
in reply to: tkos

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

Originally posted by tkos Just what we would want. A company controlled by the masses (likely through voting power for a board of directors I assume?) with the ability to constantly change the rules to make people happy. Realistically Sutton is only concerned with the Pro athletes and the show they put on. He doesn't really care about the casual amateur.

That's right, he doesn't.  While I don't agree with "the masses" owning WTC, I do agree with tirathlon's various organizations becoming more concerend with the pro and elite athletes.  They can care about the casual amateur the same way that Major League Baseball cares about Little League baseball.  I see nothing wrong with that.

2013-11-18 4:12 PM
in reply to: Left Brain

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
This is one of those topics that dumbfounds me. Unless I'm greatly mistaken, almost every attendee to a triathlon is a volunteer or a friend or family of a racing person. Almost no triathletes themselves go to triathlons unless supporting someone as a family or friend, or choosing to volunteer (I myself, went to exactly one to figure out what to do in transition prior to my first triathlon). So really no viewing public. No major brands regularly advertise except those associated with the sport. So no real blockbuster money coming in.

Sutton sounds like he's a great coach, but caught up in a drama of his own making. Without WTC, I might not have found triathlons. More power to them.
2013-11-18 5:57 PM
in reply to: bcagle25

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Originally posted by bcagle25


Its an interesting, refreshing, and possible concept. But I think most, myself included, will not give Sutton $100 with his "vision". The guy is very intelligent and knows the sport very well, but logistically I don't see this working out.

Buying out WTC? They are always for sale, its owned by a private equity so Sutton is not the only one looking to make the purchase, infact WTC is in talks with a sale as we speak.



I wonder how this is possible.

depending on the type of company, the valuation maybe 1x, 2x, 3x, 10x revenues....investment bankers can step in

So on average, the people who would contribute this $100 currently give anywhere from $350-$1000 per year to WTC. 2xHIM, or 1xIM, or 1HIM+1IM....
Add the other revenu streams (sponsors, merchandise....)

Just to ilustrate

I think they said 90,000 people did HIM. Let's say that 90,000 x $300 = $27M
Let's say another 40,000 people do IM, Let's say $40,000 x 500 = $20M
Let's say 10M in other revenue for a total of $57M

Now let's take those 130,000 people at $100 each = $13M

How do you buy a company that does 57M in revenue for 13M ?

And this is assuming that every person contributes $100

Where is my logic flawed ?







2013-11-18 6:05 PM
in reply to: marcag

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Originally posted by marcag

Originally posted by bcagle25


Its an interesting, refreshing, and possible concept. But I think most, myself included, will not give Sutton $100 with his "vision". The guy is very intelligent and knows the sport very well, but logistically I don't see this working out.

Buying out WTC? They are always for sale, its owned by a private equity so Sutton is not the only one looking to make the purchase, infact WTC is in talks with a sale as we speak.



I wonder how this is possible.

depending on the type of company, the valuation maybe 1x, 2x, 3x, 10x revenues....investment bankers can step in

So on average, the people who would contribute this $100 currently give anywhere from $350-$1000 per year to WTC. 2xHIM, or 1xIM, or 1HIM+1IM....
Add the other revenu streams (sponsors, merchandise....)

Just to ilustrate

I think they said 90,000 people did HIM. Let's say that 90,000 x $300 = $27M
Let's say another 40,000 people do IM, Let's say $40,000 x 500 = $20M
Let's say 10M in other revenue for a total of $57M

Now let's take those 130,000 people at $100 each = $13M

How do you buy a company that does 57M in revenue for 13M ?

And this is assuming that every person contributes $100

Where is my logic flawed ?




Because not every dollar you spend on an entry fee is direct profit.
2013-11-18 6:14 PM
in reply to: bcagle25

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Originally posted by bcagle25

Originally posted by marcag

Originally posted by bcagle25


Its an interesting, refreshing, and possible concept. But I think most, myself included, will not give Sutton $100 with his "vision". The guy is very intelligent and knows the sport very well, but logistically I don't see this working out.

Buying out WTC? They are always for sale, its owned by a private equity so Sutton is not the only one looking to make the purchase, infact WTC is in talks with a sale as we speak.



I wonder how this is possible.

depending on the type of company, the valuation maybe 1x, 2x, 3x, 10x revenues....investment bankers can step in

So on average, the people who would contribute this $100 currently give anywhere from $350-$1000 per year to WTC. 2xHIM, or 1xIM, or 1HIM+1IM....
Add the other revenu streams (sponsors, merchandise....)

Just to ilustrate

I think they said 90,000 people did HIM. Let's say that 90,000 x $300 = $27M
Let's say another 40,000 people do IM, Let's say $40,000 x 500 = $20M
Let's say 10M in other revenue for a total of $57M

Now let's take those 130,000 people at $100 each = $13M

How do you buy a company that does 57M in revenue for 13M ?

And this is assuming that every person contributes $100

Where is my logic flawed ?




Because not every dollar you spend on an entry fee is direct profit.


Yes, however there are multiple ways of putting a valuation on a company.

It can be 1x,2x,3x...revenues
It can be 5x, 10x, 20x earnings (profits)

But whatever way you decide to do the evaluation, $100 is nowhere near enough per person that contributes $300-$1000 per year to earnings.


2013-11-18 6:22 PM
in reply to: Fred D

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Originally posted by Fred D

I think Sutton is over-estimating how unhappy people are currently with WTC. I also think he is over-estimating the idealism of ironman distance triathletes in regards to the ironman series/races.

I could be wrong though.




Pretty much sums up my take.

Also, there is a very small % of people that are committed to the lifestyle of the very small % of people who participate as a whole. Every ironman they quote some huge number of first time participants...most of them aren't going to be around in a couple years. The age group ranks consists mainly of first world middle aged participants who are moving on to the next thing. I think when people are devoting their lives to the sport they vastly overestimate how much everyone else cares.

I don't race much but have done a few halfs and a full. I like the sport, but don't have the resources to really commit to training and racing as much as I would otherwise. Most of the people I know don't seem to care much about the pros or what is going on. They do a couple races, buy some Mdot gear, and have some fun. The need is being fulfilled.
2013-11-19 11:15 AM
in reply to: 0


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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Originally posted by marcag

Originally posted by bcagle25


Its an interesting, refreshing, and possible concept. But I think most, myself included, will not give Sutton $100 with his "vision". The guy is very intelligent and knows the sport very well, but logistically I don't see this working out.

Buying out WTC? They are always for sale, its owned by a private equity so Sutton is not the only one looking to make the purchase, infact WTC is in talks with a sale as we speak.



I wonder how this is possible.

depending on the type of company, the valuation maybe 1x, 2x, 3x, 10x revenues....investment bankers can step in

So on average, the people who would contribute this $100 currently give anywhere from $350-$1000 per year to WTC. 2xHIM, or 1xIM, or 1HIM+1IM....
Add the other revenu streams (sponsors, merchandise....)

Just to ilustrate

I think they said 90,000 people did HIM. Let's say that 90,000 x $300 = $27M
Let's say another 40,000 people do IM, Let's say $40,000 x 500 = $20M
Let's say 10M in other revenue for a total of $57M

Now let's take those 130,000 people at $100 each = $13M

How do you buy a company that does 57M in revenue for 13M ?

And this is assuming that every person contributes $100

Where is my logic flawed ?










The $100 contributed would be to purchase the equity of the company. When you put a multiple on a revenue stream you are coming up with a valuation for the total enterprise (equity + debt). So the new owners ("us") would then lever the company up (as did the PE firm when they bought it) to make up the difference in what you raise from the $100 per person and the enterprise value. That said, $13M in equity would probably be woefully short.

Edited by tb1000 2013-11-19 11:15 AM
2014-01-06 7:11 AM
in reply to: tb1000


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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
i just read this account on one persons thoughts on meeting Brett Sutton thought id share it http://www.juliannagicoaching.com/?page_id=257
2014-01-06 8:04 AM
in reply to: Left Brain

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

Originally posted by Left Brain

Originally posted by tkos Just what we would want. A company controlled by the masses (likely through voting power for a board of directors I assume?) with the ability to constantly change the rules to make people happy. Realistically Sutton is only concerned with the Pro athletes and the show they put on. He doesn't really care about the casual amateur.

That's right, he doesn't.  While I don't agree with "the masses" owning WTC, I do agree with tirathlon's various organizations becoming more concerend with the pro and elite athletes.  They can care about the casual amateur the same way that Major League Baseball cares about Little League baseball.  I see nothing wrong with that.

There is a BIG difference here, though, IMO.  None of the fans of MLB - adults who spend money to watch and such - are PLAYING Little League baseball.

In triathlon, the "fans" are actually competing in the same events - there is no splitting of venue.

Also, the money, such as it is, in triathlon comes from fans participating - not advertising revenue, as with MLB or other major, spectator based sports (NFL, NBA, NHL, etc.).

So, while the organizations should care about pro and elite athletes (if for no other reason than they should - like any competitive sporting body), I'm not convinced it makes a difference to the vast majority of participants.  In other words, better paydays, more sustainable lifestyles, events catered toward, a system supportive of the development of pro's/elite's won't have much of an effect on the majority of people in the sport and therefore its economics.

I think many people that do tri's like to follow the pros.  A few might even "care" (as in, enough to spend a dollar or two in one form or another - supporting a brand sponsored by their fave athlete or the like), but I suspect the VAST majority of folks would still show up and race even if there were NO pro's.

Here's a question to test the envelope, what do you (broadly, not singling out LB) think would happen to the sport if there were NO pros or elites?  No Olympic competition?

I'm guessing there would just be some faster folks in the younger (40 and down) age groups, but otherwise not much.  Maybe I'm missing an important dynamic in the industry, but other than the few magazines that we all read, not sure it would do much to the average person's experience - and in this sport, that is who pays the freight by participating (as opposed to beer advertising during nationally broadcast events with huge viewerships but few direct participants).

Matt

2014-01-06 8:21 AM
in reply to: mcmanusclan5

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Which came first IM pros or the IM age groupers? It was the Age groupers. The Age Groupers are the one that pay the bills. ITU has the age group race and the pro race for a reason.

Good news for the WTC there seems to be more people replacing the A/Gers that decide not to do it again. You never know how long that will continue.


2014-01-06 8:37 AM
in reply to: chirunner134

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

Originally posted by chirunner134 Which came first IM pros or the IM age groupers? It was the Age groupers. The Age Groupers are the one that pay the bills. ITU has the age group race and the pro race for a reason. Good news for the WTC there seems to be more people replacing the A/Gers that decide not to do it again. You never know how long that will continue.

what is this gibberish? what came first, baseball pro's or baseball amateurs? Every sport started with amateurs inventing it, people getting good at it and making leagues, and if it is popular enough pro leagues form. And people still play just as much, no MORE amateur football, basketball, soccer etc. for fun. They just don't do it in the same places as the pros. Those people "pay the bills" as well, just from the couch. 

What triathlon needs to do is make the races watchable, which the grand prix races and ITU short course races are. Money comes with popularity, and you don't get popularity without a watchable product. This is also a much better business model than Sutton's please "give me money" idea. That isn't sustainable and doesn't really make any sense.

2014-01-06 9:01 AM
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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

How would the average AG in Ironman even run WTC consistently?  Aren't many AG'ers part of the "one and done" crowd?  A lot of people out there just want to get the race checked off their list and move on.



Edited by msteiner 2014-01-06 9:02 AM
2014-01-06 9:35 AM
in reply to: msteiner

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...
Brett Sutton may be a good pro coach, but his ideas on a potential takeover of WTC demonstrates his lack of business acumen. He should stick to coaching (adults). He has the right to speak his mind and some folks listen, but I can't imagine too many people take him seriously...



2014-01-06 8:22 PM
in reply to: dmiller5

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Subject: RE: BRETT SUTTON INTERVIEW - WTC TAKEOVER...

Originally posted by dmiller5

Originally posted by chirunner134 Which came first IM pros or the IM age groupers? It was the Age groupers. The Age Groupers are the one that pay the bills. ITU has the age group race and the pro race for a reason. Good news for the WTC there seems to be more people replacing the A/Gers that decide not to do it again. You never know how long that will continue.

what is this gibberish? what came first, baseball pro's or baseball amateurs? Every sport started with amateurs inventing it, people getting good at it and making leagues, and if it is popular enough pro leagues form. And people still play just as much, no MORE amateur football, basketball, soccer etc. for fun. They just don't do it in the same places as the pros. Those people "pay the bills" as well, just from the couch. 

What triathlon needs to do is make the races watchable, which the grand prix races and ITU short course races are. Money comes with popularity, and you don't get popularity without a watchable product. This is also a much better business model than Sutton's please "give me money" idea. That isn't sustainable and doesn't really make any sense.

Preach it brother!  Those races are a blast to watch!  Even my buds who want nothing to do with triathlon enjoy watching the grand prix races.  Build that format and you will see triathlon grow.......not because of participation, but because people will watch the races because they are fast paced, have plenty of action, and people crash.   If there are no crashes, America won't care. 

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