Challenge shortfall unlikely

Penticton Herald Thursday, 13 September 2012 02:00 JOHN MOORHOUSE 
  The City of Penticton won't be on the hook for any operational deficit connected to the new Challenge Penticton triathlon, says the chair of the Penticton Triathlon Race Society.  However, Paul McCann reiterated his earlier assertion that such a funding shortfall is unlikely.  McCann responded Wednesday to questions surrounding the funding issue by pointing to the three main sources of revenue for the Challenge triathlon, due make its debut on Aug. 25, 2013.  In addition to the $675 per athlete registration fee, additional revenues are expected from corporate sponsorships and merchandise sales.   "The city has no commitment to the race society and the city is not on the hook for any unlikely shortfall," he said. "The race society will be ultimately paying for whatever licensing obligations there are."  Although the city holds the licence with German-based Challenge Family, it has transferred operational aspects of the triathlon to the new society, which pays the license fees.  McCann explained it's difficult to determine an exact amount of the licence fee because it is largely based on a per athlete levy. The more athletes entered in the race, the higher the fee.  "The amounts going to the Challenge Family are based on the successful outcomes of the society's effort," he said. "There are no other costs that are required of the city as a result of this."  The agreement does include what McCann describes as a "small flat fee". He declined to reveal the exact figure but said it is "dramatically less" than $100,000.  Since Challenge Family is a private company associated with a number of races, McCann said further financial details surrounding the licence agreement cannot be made public.  He again emphasized a deficit is unlikely.  "We are anticipating substantial revenues and as long as we operate the race efficiently, we expect the race to be profitable," he said. "The profits of the race will ultimately be distributed to the benefit of the community."  The Penticton Triathlon Race Society board met for the first time last Friday. McCann said they hope to hire a general manager/race director before the end of October.  He also praised the efforts of City of Penticton staff in helping arrange the new agreement with Challenge Family.