The State of Challenge
Challenge, the worldwide series of triathlons offering an alternative to Ironman has been busy the last few months and we thought it prudent to take the temperature of this brand.
Challenge Family scored a coup with its penetration into the Middle East. It purchased/partnered with the Rev3 series. It announced new Americas corporate structure and then took a step forward or backward – depending on your point of view – with the cancellation last week of the pro prize purse at a number of its North American races.
As to that last point, the money was canceled at the following Challenge races in North America: Quassy, Atlantic City, Maine, Poconos, Cedar Point. These were all, except Atlantic City, previously Rev3 races following the merger and rebranding of the Rev3 races. The Challenge Family apparently awoke to what Rev3 realized when they originally pared back the money prior to the joint venture between Rev3 and Challenge: Certain races lend themselves to a pro field, others don't, and certain of the former Rev3 races don't.
How do you know when an event ought to be a prize money race? Zibi Szlufcik, Challenge Family's CEO (speaking to athletes in Dubai in the image above), cited "the lack of interest and urgency" by the pro cohort as one prime reason for pulling the money. Not just a lack of interest, but a lack of timely interest: "A last minute signup does not help."
But certain pro athletes, like Justin Metzler, Chris Leiferman, Patrick Evoe and Taylor Reid reported that they tried to sign up for these races via Challenge's "Pro SignUp" form and their requests fell into a black hole. Mr. Szlufcik did not dispute that at least some pro entry requests went unanswered, but maintained that a pro who wanted into a particular race shouldn't have left it there. He asked me, rhetorically, "If you are media and you want to reach a pro athlete and you can't reach him, you'll try some other way, don't you?" He's got a point. He noted that such other ways included contacting Challenge's pro liaison, Belinda Granger.
The athletes have a point too. They followed the procedure. Davide Giardini wrote to us, "I signed up twice on their Pro SignUp form online where one had to select all the races he was interested in registering for. I never heard back from anyone, and I wasn't listed on the start list for the upcoming Challenge Knoxville." It seems a fall-down by both the pros and Challenge Americas.
Still, in a refreshingly candid comment for an upcoming interview with Slowtwitch, Cody Beals told us, "I was full of praise when Challenge announced their pro series last year, but I didn't vote with my feet and sign up for more Challenge races."
Mr. Szlufcik isn't blaming the athletes for a lack of pro registrations, rather the, "Cannibalization among races, especially on the East Coast." As with Ironman and its approach to certain of its North American races, maybe there are events that defy the attempt to imbue them with purses. No such problem with Roth and most of the 46 global Challenge Family races offering $2.4 million in prize money with an additional $600,000 in help for the pro athlete.
What is the state of Challenge's Triple Crown in the Middle East? Oman and Bahrain? "There are rumors all around," said Mr. Szlufcik. "We have a pending discussion about Oman. Within the next 7 to 14 days we'll make the final decision. There's a problem with Yemen, significant political issues surrounding this, we have to consider athlete safety."
If the Oman race was to go away, Challenge is searching out a replacement. As for Bahrain, December 11 upcoming, "no issues with this race."
Is the Middle East an ongoing initiative, with legs, with a future? "We have a 5-year contract," said Mr. Szlufcik, noting that "Bahrain was a significant game changer. There are ups and downs everywhere in the world, but generally speaking we have a strong and committed relationship."
What about licensing versus owning? Is the bloom off the licensing rose for Challenge? "In principle, one size doesn't fit all. We license; there are small equity positions we take; and there are joint ventures, such as with Charlie Patten and in the Middle East."
But Rancho Cordova was a licensed race and it is gone from the schedule. This was Challenge's foothold on the West Coast of North America. Mr. Szlufcik does not feel this is a weakness of the licensing model, rather he likens it to a football team. "We have great races, that sell out. But like a football team, we have great players, we have players we need to rotate out."
