2020 Cape Epic Cancelled

[babse]

I dont for 1 second believe that at 90k a team entry, (quick math = +R50mil) just about cover the event cost!

 

Also im not in events at all, but dont sponsors come on board and supply many things for mahalah? 

 

I too dont think entries will go open for next year until this is resolved. They have said final communication will only come out in April as to the way forward.

[TCTG]

Epic events like this surely should have Event insurance that will kick in. it would be foolhardy if they didn't take it up which I will find hard to believe given the reputation this event carries. We live in extraordinary times and extra ordinary measures should be enacted. UIF will be used to assist employers and employees in this hour of need and i feel the Epic SMT should be able to use the insurance that will or was paid out to subsidize next years team entry (75 to 80%). Its only fair seeing that, for good reason, the event was canceled on the eleventh hour.

[eddy]

Epic events like this surely should have Event insurance that will kick in.

For what that may be worth.

 

Recall that the 2008 financial crises went from a trickle to catastrophe when it became clear that AIG (who insured the banks against counterparty credit default) was incapable of meeting the claims. There were just too many of them and when AIG went bust, so did everyone who had believed they were covered, and the the rest followed.

 

I suspect that no insurance underwriter foresaw this level of cancellation and am sure none has the resources to deal with it.

Edited March 19, 2020 by eddy

[Patchelicious]

I dont for 1 second believe that at 90k a team entry, (quick math = +R50mil) just about cover the event cost!

 

Also im not in events at all, but dont sponsors come on board and supply many things for mahalah?

 

I too dont think entries will go open for next year until this is resolved. They have said final communication will only come out in April as to the way forward.

No, that is not how event financials work. Most sponsorships are financial contributions.

[wessie12]

I dont for 1 second believe that at 90k a team entry, (quick math = +R50mil) just about cover the event cost!

 

Also im not in events at all, but dont sponsors come on board and supply many things for mahalah?

 

I too dont think entries will go open for next year until this is resolved. They have said final communication will only come out in April as to the way forward.

You will be surprised what the overheads amount to in an event like the Epic. Keep in mind that for me and you it is 8 days but for the organizers it's a all year round job. 2 months ago the 2021 route was basically finalized with with new sections to be built soon. There's literally more than a hundred service providers that recieved there money upfront. Does the Epic make money? Sure they do but a cancellation like this will hurt them.

[DieselnDust]

In SA it seems that most races are second to a goodie bag when entering.

Looks John,

 

everyone loves an overpriced jacket t-shirt and assos cycle top. Because.......EPIC BRU!!!

[DieselnDust]

You will be surprised what the overheads amount to in an event like the Epic. Keep in mind that for me and you it is 8 days but for the organizers it's a all year round job. 2 months ago the 2021 route was basically finalized with with new sections to be built soon. There's literally more than a hundred service providers that recieved there money upfront. Does the Epic make money? Sure they do but a cancellation like this will hurt them.

 

 

So a little birdie that is involved in the event from a supplier perspective mentioned to me over the weekend that the event organiser is trying to wiggle out of paying service providers.

Very ttricky times for them because if they annoy enough suppliers they're going to find themselves either with a bundle of law suits or being blacklisted as customer not worth doing business with. I can't see them getting out of it without either WANDA bailing it out or the banks which is going to drive entry fees even higher.

 

This is a very difficult time and the future of the event could be balancing on an edge. Patience indeed

[SCD]

I am not convinced yet there will be a 2021 event. 

Think about it.

 

1. Before there isn't a vaccine Covit-19 will not be over.

    This won't happen in 12 months.

2. Businesses go down, people retrenched. It will be tough.

    Very tough. Who will have the money to ride Epic?

3. After the financial knock of all events cancelled Wanda

    may be in trouble. They may push out assets or close them down.

    This is what Corporates do. So ACE may be no more altogether.

 

Maybe this offers an opportunity for a restart. Downscale. Normal fees that people can afford. Performance entry criteria for the race. A short version for the corporate sponsors. Many possibilities.

Edited March 19, 2020 by SCD

[Patchelicious]

For what that may be worth.

 

Recall that the 2008 financial crises went from a trickle to catastrophe when it became clear that AIG (who insured the banks against counterparty credit default) was incapable of meeting the claims. There were just too many of them and when AIG went bust, so did everyone who had believed they were covered, and the the rest followed.

 

I suspect that no insurance underwriter foresaw this level of cancellation and am sure none has the resources to deal with it.

Off the bat, Financial crisis’ are a lot harder to insure against than natural disasters. Pandemics are predictable to some degree. Also, co-insurance and reinsurance treaties are setup specifically for this. They are also very aware of their risk exposure for certain risk types, eg: events. If there is over exposure they will adjust.

 

When there is a government sanction cancellation, extra clauses come into play. Like Catastrophe events. When this happens there is extra protections.

 

This is only on the insurer side, the event organizers still need actually take out insurance with the correct cover amounts. edt: this is where I think there might be an issue. However the holding company of the Epic are well versed in running events and the legalities around it.

Edited March 19, 2020 by Patchelicious

[Shebeen]

I am not privy to the details of the epics finances, but have been involved with enough events to know that they are most likely suffering at this point. Even with the massive entry fees charged on events like the epic, the margins of events are pretty small. Without the sponsors Cheques, most big events would not be viable business ventures. Essentially the event fee you pay might just cover the actual costs of the event, and the organizers make their money from “selling” advertising space to the sponsors.

 

 

 

Epic is a totally different animal to anything else on the scene, but ja i doubt they're coming out ahead of this.

 

was a really good opportunity to buy some goodwill and have some compensation, we will have to see if they can ride this one out.

 

 

okes who sold their entry in the final weeks must be smiling, sort of.

[Stretch]

Guy I know is struggling to get his R4000 back that he paid a bike shop for a mechanic service package during the Epic.

 

I know it's not a lot of money, but guys are trying to get whatever scraps they can back to soften the blow should they lose their entry.

How can you retain money for services not rendered. It doesn't work like that. That LBS should be named and shamed

[SwissVan]

Looks John,

 

everyone loves an overpriced jacket t-shirt and assos cycle top. Because.......EPIC BRU!!!

 

Funny enough my t shirt has never been worn, lying forlorn at the bottom of my t shirt shelf

I really should treat it better considering how much i paid for it 

[Jewbacca]

How can you retain money for services not rendered. It doesn't work like that. That LBS should be named and shamed

While I agree, those same bikeshops bought spares, kit, etc which they likely can't return specifically for Epic. While I believe there should be some return, the knock on effect of the cancellation and 'already spent' income is difficult to measure.

 

But there should be some recourse. 

[Stretch]

While I agree, those same bikeshops bought spares, kit, etc which they likely can't return specifically for Epic. While I believe there should be some return, the knock on effect of the cancellation and 'already spent' income is difficult to measure.

 

But there should be some recourse.

Agreed...I have factored in spares bought especially for the event... But then the compromise is that that person should be given all the spares that were going to be used

[ChrisF]

How can you retain money for services not rendered. It doesn't work like that. That LBS should be named and shamed

 

As much as I agree with you .... I know some of these shops ordered LOTS of stock !  Talking hundreds of thousands rands worth of stock, as they must have everything at the ready each night when the riders finish.

 

 

If they cant hand it back to the importers, they are in for a world of hurting !!!

 

 

Wonder to what extent the various other service providers were exposed .... LOTS of people taking a serious knock !!

 

 

MAYBE - as a gesture of goodwill, and a way for both to come out on top - the LBS sold a number of services in the package, provide this service over a period of time (IF the rider is locally based ...)

[Patchelicious]

You do know that you can take out your own insurance against event and travel.

I would certainly do so when spending the kind of cash that the Epic requires.