Is this the end of the M-dot?

[gummibear]

http://www.220triathlon.com/news/ironman-bought-by-chinas-wanda-group-for-650m/10473.html

 

 

Ironman bought by China's Wanda Group for $650m

 

It's official – Ironman has been acquired by Chinese conglomerate Dalian Wanda Group for $650m, joining football club Atlético Madrid on the latter's roster of investments in Western sports enterprises.

The news broke early this morning, and Wanda Group assumes Ironman's existing – unspecified – debts from current owner Providence Equity Partners.

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The finish chute at the Ironman World Championship in Hawaii (Paul Phillips)

Ironman CEO Andrew Messick said: “Wanda Group’s acquisition of Ironman marks another exciting chapter and opportunity for the future growth of Ironman after seven very successful years of ownership by Providence Equity Partners.

“Wanda Group is a global-minded organisation that shares our desire for excellence and continued growth, particularly in Asia. We are delighted to be part of the Wanda Group family of companies and are excited about the future of Ironman as we continue to provide life changing race experiences for athletes of all levels from their first step to the finish line.”

There's certainly plenty of headroom for growth in the Far East – just 100 Chinese athletes have completed an Ironman race in the history of triathlon, a company spokesperson told the Wall Street Journal.

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Industry watcher Gary Roethenbaugh, founder of news source Triathlon Business, believes the acquisition represents a “major shift in gear” for the M-Dot brand.

“While it is understood that it will be business as usual for the Ironman team in Tampa, Florida – with Ironman now part of the rapidly expanding Wanda Group, we can expect to see a flurry of activity for Ironman and IM 70.3 in the Asia region in particular.”

During the announcement, Ironman also revealed it expects to generate revenues of $183m in 2015, and has increased revenue at a compound annual growth rate of 21% over the past four years.

[fanievb]

Different holding company. Same management team

[gummibear]

Different holding company. Same management team

Will they add more races?

 

Will entries rise?

[gummibear]

If they change the Mdot symbol then I'm going into tattoo removal business [emoji23][emoji23]

[fanievb]

Quite a few new races added to the calendar this year already.

Let's hope for more.

 

What we need to remember is that IM is after all a business which needs to make a profit.

 

Locally I know that despite profit margin athlete safety and satisfaction come first though. Can't comment on international events.

[davem]

Certainly not the end of the Mdot but the beginning of the expansion into new markets. The USD850m dollars paid in at an earnings multiple believed to be in the high teens.

 

You only do that to buy future growth which is distinctly tied to the brand. As the existing management team is locked in to new 5 year contracts and the head office remains in Atlanta, the new owners are not doing anything to change the success in existing markets.

 

PEP turned a USD220m investment into USD850 in seven years. That is pretty impressive in the global economy we have had since 2008.

[davem]

One of the effects of increasing global expansion of IM will be the reduction in Kona slots for each race. 

[IceCreamMan]

If they change the Mdot symbol then I'm going into tattoo removal business [emoji23][emoji23]

Actually will possibly increase the value of mine