Ironman is planning to continue its global expansion by adding other endurance sports, beyond triathlon, to its event portfolio, company CMO Chris Stadler said. Ironman’s parent company, World Triathlon Corp., was acquired by China’s Dalian Wanda Group in Aug. ’15 in a $650M deal. The endurance event organizer has since expanded into new markets and diversified its offerings, and there are no signs of slowing down. “The strategy is to be a broader endurance company, not just triathlon,” Stadler told SBD Global. The company, which was founded in '78 and focused solely on long-distance triathlon, now has a portfolio that includes middle and short-distance triathlons, marathons and cycling events, among others. Many of those new events came as part of Ironman's acquisition of Lagardère Sports' endurance division in Jan. ’16. The 21 events that were part of the Lagardère deal bring the total number of events to more than 270 per year. Ironman did not disclose financial details of the acquisition. With registration fees running from a couple hundred dollars to several thousand, depending on the event, it is Ironman's biggest revenue stream and responsible for 60% of its total income. “Race registrations is by far the biggest bucket,” Stadler said. “Other meaningful components include sponsorships and broadcast rights.” U.S. network NBC will air an Ironman World Championship special on Saturday at 2:30pm. The annual world championship takes place in Hawaii and will not leave the island anytime soon, Stadler said. “Hawaii is a really important part of our DNA,” he added. “I couldn’t imagine us leaving Hawaii.”
FUELED BY FEES: The company has a large number of global, regional and local sponsors for its int'l events. While sponsorship revenue is expected to increase going forward, registration fees will remain the No. 1 income source, Stadler said. “I don’t think that the total mix will necessarily change, but as we get broader assets and a broader portfolio that should help our sponsorship business because we become more of a one-stop shop for partners.” Ironman will be able to take advantage of Wanda’s other sports properties in its search for new partners. “This opens up new doors," Stadler said. "Infront being our sister company and having very strong relationships in Europe. Wanda having strong relationships in China. This will only help further our sponsorship goals and targets.” Wanda acquired Swiss sports agency Infront Sports & Media in Feb. ’15 for a reported $1.2B. The synergies between the various divisions have already resulted in Ironman entering the Chinese market with two events this year. “Wanda has established terrific relationships with key stakeholders in the country,” Stadler said. “They really jumpstart and ignite a lot of the work that would have taken us much longer if we were an American company coming in and trying to do business in China.” Ironman did not reveal what impact the Wanda acquisition had on its bottom line. “We were on a good trajectory prior to the acquisition,” he said. “This is taking it to the next level and opening up the largest market in the world for us.”
