Ironman is quoted as a “recession proof thing” in a New York Times article (‘When Iron is a Precious Metal’, 11 September 2008). The article states that, while triathlon is a sport that has grown increasingly expensive, entry fees for Ironman branded events have risen 40% since 2003. Quoting US$525 (€420) for a standard Ironman entry, the New York Times notes that high prices have not put a dent in demand.
In the last decade, Ironman has become an increasing obsession for many athletes seeking the ultimate sporting challenge. A large number of participants are, importantly, those with high levels of disposable income. The New York Times calls Ironman ‘a luxury hobby that does not seem to lose its lustre even in an economic downturn.’
Globally, this year more than 88,000 people will take part in Ironman (M-dot) races. This is up from 40,000 in 2003. Thus, with event entry fees generating revenue alone of US$46.2 million (€36.8 million), before broadcasting, apparel and other income streams, it is clear that Ironman is big business.
Typical Ironman participants are wealthy type-A consumers willing to pay for the allure of competing in an M-dot race. This has underpinned the success of Ironman in recent years. The World Triathlon Corporation (WTC), owner of the Ironman brand, notes that Ironman event participants have an average household income of US$161,000.
According to the New York Times, equivalent distance races without the Ironman M-dot logo generally cost around US$300 (€240) versus Ironman’s standard US$525 entry fee.
Ironman event organisers in the US must pay fees to city, county and state agencies. As with similar triathlon events, these fees cover policing and other costs. In addition, M-dot race organisers must pay licensing fees that have ‘gone up considerably’.
Despite this, most race organisers are will to pay the price for running an M-dot event. Organisers note the allure and kudos of the M-dot logo amongst race entrants and the Ironman brand’s promotional muscle.
The expansion of Ironman continues. This month, WTC, which also owns the Ironman 70.3 and Iron Girl brands, is bringing kids on board with the 2009 IronKids race series. Meanwhile, in September the Ironman business machine unveiled a new backer in the shape of Providence Equity Partners. The purchase price was not disclosed, although it is understood that the price tag was between US$50 million to US$80 million (€37 million to €59 million).
As the WTC takes Ironman to a new phase in 2008 and through to 2009, the spotlight shall be on the sport now more than ever. A swim/bike/run through choppy economic waters perhaps?
