Dalian Wanda’s relationship with the Chinese government has been the key to Ironman’s entrance into the Chinese market. With cities Xiamen and Hefei each debuting an Ironman 70.3 in the fall, the Chinese property company’s acquisition of Ironman owner World Triathlon Corp. for $650M last August has fast-tracked the race organizers' plans to host events in the world’s second-largest economy. “We were able to fast-forward our regional development programs and reshuffle a lot of our geographic and regional growth plans on the basis of now being part of the Wanda family,” Ironman CEO Andrew Messick said. Being part of the Wanda family means the triathlon organizers now have China’s largest commercial property company and the world’s largest operator of movie theaters behind it as it makes its push into a country with a powerful central government. “The single most material difference in doing business in China is that you really need coordination and partnership with the government,” Messick said. With billions of dollars invested in real estate development, Wanda has “extraordinarily good relationships at the city level, provincial level and at the national level,” Messick said. To operate an Ironman race, organizers need access to bodies of water and the ability to close roads. “We need to be able to ensure public safety and security on roadways and waterways,” Messick said. “To be able to have somebody that understands how business gets done and that has people who are working in every community is vital. Our ability to establish races and overcome all of the usual operational headaches that any race organization company has was made dramatically easier by being a part of Wanda.”
ROADBLOCKS: Ironman has experienced first-hand the type of operational headaches that can hinder an endurance race. The Xiamen and Hefei races are not Ironman’s first foray into China. The organizers hosted Ironman China and Ironman 70.3 China from ’08-10, ending with the abrupt cancellation of the ’11 races in Jixian, Tianjin Province just two weeks before their scheduled start. After first announcing the cancellation of the swim portion, due to a scheduling conflict with city government over the use of a freshwater reservoir, Ironman China ultimately ran into organizational issues after Tianjin Sports Bureau, the event's co-organizer, failed to obtain necessary sanctions from the China Triathlon Sports Association to conduct the race. Ironman has since made efforts to move away from the third-party licensing model it once used for the majority of its races. Providence Equity Partners, the previous owners of WTC, started reacquiring its races in ’09 in an attempt to regain control over the brand’s quality. “If you really aspire to be a global organization and aspire to have Ironman be a global brand, Providence’s conclusion was, you need to have much more control over the races,” Messick said. “You need to have more control over how the brand is portrayed and you need to make and keep promises to athletes all around the world.” Messick stressed the importance of being able to deliver a quality product through owning races rather than licensing them. “All the agency-based problems that you have when you’re dealing with third party, bound only by contract, are eliminated when you’re dealing with the people in the races as part of the company. It’s given us a lot more control over our ability to deliver a high-level and consistent race experience to athletes all over the world.” As Ironman navigates the often complicated sports business landscape in China, Messick is confident in Wanda’s ability to provide the necessary strength to ensure a smooth delivery. “They are an ambitious and aggressive company, which suits us well, because we are an ambitious and aggressive company as well.”
