Castanet

https://www.penticton.ca/EN/meta/city-n ... dium=email

So City staff is going to do a presentation about the results of the triathalon survey and are suggesting the City negotiate to bring Ironman back at an additional cost of $300,000 to the City. I am in favor of the City funding events in Penticton and it would be nice to see Ironman come back, but this expense is a little to big IMO.

I hope they do another survey to see how many would support such an expense.

I would be very interested in knowing who the group is behind trying to bring this event back.

Before we pursue this, we need to get to the bottom of the backdoor shenanigans that got rid of Ironman in the first place, because that was a bunch of BS and everyone knows it.

I struggle to understand why it should cost the host city a half a million dollars +\- to host an event that is being put on by a company bringing in 900k-1.2million in race fees PER EVENT! And that doesn’t include any merchandise etc... that’s just entry fees. Much of the equipment is rented, and donated, and a large portion of the labor is volunteer. Perhaps this isn’t a sustainable business. Don’t get me wrong, I did Ironman Canada 9 times in penticton and would love to see this race brought back to life. But there is something very wrong with the numbers. What happen to The good old days of washing water bottles at the aid stations, and handing out PBJ sandwiches and chicken noodle soup at the aid stations. The old days were cost effective ;)

I’d like to know more about the numbers as well. The reason that was widely circulated for refusing to renew the old arrangement with Ironman was that they had become too greedy, demanding more and more from the city which only served to bolster their own bottom line. I’d like to know what has changed.

fluffy wrote:I’d like to know more about the numbers as well. The reason that was widely circulated for refusing to renew the old arrangement with Ironman was that they had become too greedy, demanding more and more from the city which only served to bolster their own bottom line. I’d like to know what has changed.

I think what has changed is the realization and acknowledgment of the Ironman brand's ability to draw the numbers and revenue. Many underestimated the franchise name. I certainly did when Ironman moved to Whistler. I honestly thought our location and history would translate to success for the Challenge Races. Wrong.

Having said that however....a near half million in City contribution does need some serious forensic auditing to justify public tax dollars of that magnitude in sponsorship. The economic benefits are touted at 12.5 million. That's all fabulous but the real important number to me is what does the City budget itself realize back in tax revenue to recoup that 400-500k from the 12.5 million in economic boost?? The race certainly does not increase the property tax base nor does it pay a portion of wages from jobs created to City coffers. I think it would be very hard to justify and the more likely benefactors are just the 10% of tourism and restaurant businesses. Perhaps Tourism Penticton should be fronting the entire sponsorship? Just saying.

And just as a control or comparison for perspective........the entire SOEC campus receives a little over a million in City subsidy per yr for an estimated 35 million per year in economic benefit. About three times the return for the taxpayer investment and it is a venue that brings entertainment of all kinds from sports to Cirque and and everything in between for the entire south Okanagan population year round rather than a one day race with three sleepovers.

https://www.castanet.net/news/Penticton ... oming-home

City council voted unanimously Tuesday to have city staff move forward with negotiating a five-year agreement with Ironman Canada to bring the iconic race back to the city.

While a contract needs to be finalized, councillors heard the preliminary proposal will see Penticton host the full-length edition of the race for five years starting in 2020 at an annual cost to taxpayers of $299,000 in cash and $111,000 in-kind support.

Unanimous decision by council. Lots of taxpayers money needed and hopefully a good return on investment. I still have issues with Ironman costs and their hard lined control on advertising. But it does not matter as the decision has been made.

AWESOME !!!!

This is great.
What happens if there is smoke in the valley ...

Ahhh .. We can all get our air guitars out and rock out with "Smoke on the water".

I don`t understand why we pay a private company to hold a race in our town.
As a tax payer in Penticton, I think we could spend the money on better things for all the residents.

mikeb55 wrote:I don`t understand why we pay a private company to hold a race in our town.
As a tax payer in Penticton, I think we could spend the money on better things for all the residents.

Im curious as to how much the Ironman brand itself spends locally to put on the race. We’re always told how much the athletes spend but what about the race event? Are any supplies or equipment purchased locally? They rely heavily on volunteers - do they employ anyone locally?

How much is the race entry fee? Say, $700 x 2,000 entrants is $1,400,000. How much of that is left behind in Penticton?

It's sold out! Did not take long at all.

https://www.castanet.net/news/Penticton ... y-sold-out

The city pays for events to incentivize organizers to run events in the community. After all, they are for profit. Much like a city will pay major sports teams to bring their franchise to town. There is economic benefit.

$410,000 for 5 years, is less than a 100k per year. In return, the city benefits from tourist visits, global exposure, along with millions of dollars entering the local economy. The money spent comes back many times over.

I understand you're concerned about your tax dollars and you should be. Rest easy knowing that the city has made a good investment on your behalf. Imagine the money the city would fail to gain if they didn't play host.

The average salary of an ironman athlete is $168,000CAD. These athletes are hard working, honest, healthy, and dedicated with money to spend. They are the best kind of tourist visitor a city could attract.

ranger49 wrote:The city pays for events to incentivize organizers to run events in the community. After all, they are for profit. Much like a city will pay major sports teams to bring their franchise to town. There is economic benefit.

$410,000 for 5 years, is less than a 100k per year. In return, the city benefits from tourist visits, global exposure, along with millions of dollars entering the local economy. The money spent comes back many times over.

I understand you're concerned about your tax dollars and you should be. Rest easy knowing that the city has made a good investment on your behalf. Imagine the money the city would fail to gain if they didn't play host.

The average salary of an ironman athlete is $168,000CAD. These athletes are hard working, honest, healthy, and dedicated with money to spend. They are the best kind of tourist visitor a city could attract.

Try reading this again.

https://www.castanet.net/news/Penticton/261356/its-official-ironman-returns

It will have an annual cost to taxpayers of $299,000 in cash and $111,000 in-kind support.

ranger49 wrote:The city pays for events to incentivize organizers to run events in the community. After all, they are for profit. Much like a city will pay major sports teams to bring their franchise to town. There is economic benefit.

$410,000 for 5 years, is less than a 100k per year. In return, the city benefits from tourist visits, global exposure, along with millions of dollars entering the local economy. The money spent comes back many times over.

I understand you're concerned about your tax dollars and you should be. Rest easy knowing that the city has made a good investment on your behalf. Imagine the money the city would fail to gain if they didn't play host.

The average salary of an ironman athlete is $168,000CAD. These athletes are hard working, honest, healthy, and dedicated with money to spend. They are the best kind of tourist visitor a city could attract.

You have me wondering if the average annual salary of an Ironman participant is actually 168,000 divided by 5.