Volatility in global currency markets and the impact on the New Zealand dollar has triggered the cancellation of the New Plymouth’s World Cup triathlon. Triathlon New Zealand said the New Plymouth event would not be held next year and blamed the current global credit crisis for making it too expensive to hold.
A World Cup triathlon event must have a minimum prize pool of US$80,000. At current exchange rates this is close to NZ$150,000. Yet, when the race was held in April this year, the high NZ dollar meant the prize pool cost only around NZ$100,000. The event is likely to be replaced by a lower level International Triathlon Union Continental Cup event for which the minimum prize money is less and can also be paid in NZ dollars.
Just one year ago Port Taranaki signed a four-year sponsorship deal for the World Cup event valued at NZ$400,000.Chief Executive Roy Weaver said the port company was approached to increase sponsorship to help cover the inflated costs but it was unable to do so.
Port Taranaki would continue to support the lower level event but would be reducing its sponsorship to NZ$75,000 a year to reflect its lesser status. Weaver added: "It’s one of those things that happens and its very sensible for everyone, when times get tough you just have to cut your losses and work within your reduced circumstances."
