Challenge Penticton now belongs to the private sector, but the city has lost $309,540 in the first two years of the event.
To strengthen the Challenge brand over its first two years, the city invested $609,540 in the event. The new organizers will pay about half of that amount back to the city – $300,000 – over a five year period, which begins in 2015.
“With the debt repayment plan, the outstanding investment is $309,540 for two years of races,” reads a city press release.
“(The new organizers) did concede to a personal guarantee on that,” Mayor Andrew Jakubeit said.
“When you’ve put personal assets on the line to secure something, you’re going to do everything in your power to make it profitable. They’re not going to do anything to jeopardize any of their investment.”
After severing ties with Ironman Canada, Challenge Penticton launched in 2012 and was co-ordinated by the Penticton Triathlon Race Society for the 2013 and 2014 events.
Jakubeit said that he has no regrets in the city’s decision to take the triathlon in a new direction.
“It’s tough when you change brands.”
He said the city isn’t in the triathlon business, and their approach was proving not to be the greatest governance model.
“This is something the private sector is better suited to take on.”
According to the press release, council was prepared to commit to a multi-year approach in building the event when the decision was made in 2012.
“It is important to remember the city would have been paying for the other brand as well – $120,000 plus incremental fees,” Jakubeit said. “This transition has been a big shift, but one that is best for our community over the long term. We’re confident that a solid foundation has been built and that our long-distance race will continue to grow into the premier triathlon event in Canada.”
He said Ironman, after 30 years of building its reputation, was attracting upwards of 2,700 participants in its heyday, while the first year of Challenge Penticton saw less than 1,000 people compete. He said the following year saw about 1,100 competitors.
“So it’s taking a little longer to build up (than anticipated).”
He said the Ironman event had a tendency to bring visitors to town before and after the race, and athletes would often vacation with their families and get used to training in the local climate.
“That’s what we want to rebuild to and really designate Penticton as an area to train and participate in for triathlons,” he said.
But while the organization once offered genuine community appeal, Jakubeit said that Ironman became very corporate, and continually made more expensive demands each year.
“The relationship had deteriorated between the city and race organizers.”
He said many of the participants from Ironman were initially skeptical over whether or not Challenge Penticton would prove to be an authentic triathlon. Jakubeit said it is the same great course, volunteers and now the Challenge just needs to “gain some muster.”
“People are now circling back to the fact that Challenge brand is the real brand, and this is an iconic course that they need to put on their bucket list.”
“We want to thank the Penticton Triathlon Race Society for their tireless efforts in organizing one of the region’s premier destination sporting events for over two years,” he said. “They have committed a great deal of time and energy as volunteers, all to benefit the community.”
The transfer was finalized after the PTRS submitted an overview to the City of Penticton of the results from the 2014 event, and showed that the cost of the race came in under budget, and reduced costs over the year prior by $150,000. The PTRS has now dissolved.
