Modern Athlete Magazine Issue 131, June 2020 June 2020 | Page 13

THE RUNNING MANN Making Sense of It All “No refund” decisions are always going to be contentious and the official communication to runners seemed to hide behind the event’s “terms and conditions,” with the result that the message that it was not financially possible to refund runners was lost on (or not believed by) many frustrated runners. However, taking a closer look at the financials and considering the advanced state of planning – the event was cancelled just three weeks before race day – there really was no possibility of refunding athletes. To put on a world class event of this scale is expensive, and like Comrades, TOM has significant fixed monthly overhead costs of R490,000, which includes the salaries of eight full-time staff members. In addition, Two Oceans supplement their staff with 15 to 20 contractors in the four to six months leading up to the event. The event itself costs approximately R30 million to stage. When the race was cancelled, about R10 million had already been physically spent (the precise figure I was given was R9,756,454). However, this figure excludes significant additional committed expenditure ahead of race day. Race director, Debra Barnes, who was appointed to the position in October last year, explained, “We have concluded arrangements with most suppliers regarding contractual payments and appropriate refunds of deposits paid. The TOM board made a decision in principle to honour contracts with local suppliers, such as the manufacture of T-shirts, medals and goodie bags, and where expenses had already been committed.” With the loss of R15 million in sponsorships for the 2020 event, Two Oceans was always going to be under financial pressure. The pre-cancellation budget projected a deficit of approximately R4 million, with the shortfall being covered by tapping into the race’s reserve fund. According to Barnes, there was still a possibility that new sponsors would have been added to the 2020 event. “At the time TOM was cancelled, we were still in discussion with several sponsors that would have reduced the projected loss. With the cancellation of the event, these discussions with potential sponsors, though far advanced, understandably stopped.” Deficit vs Surplus Ultimately, the cancellation has resulted in the shortfall swinging from a significant deficit to a surplus of R1.4 million. Barnes elaborated, “With the non-payment of costs such as prize money, our exposure to the Cape Town International Convention Centre and the associated Expo costs, other venue hire and event infrastructure costs at the start and finish, our savings have increased. Our current projected surplus is R1.4 million, excluding the cost of distribution of T-shirts and refunds.” The courier and distribution costs for the shirts, as well as refunding parking, medal engraving and other incidentals (plus the bank charges thereon) is likely to eat into a significant chunk of this R1.4 million. In the event of a post-cancellation surplus in 2020, the amount will be allocated towards the reserve fund, which will in turn be allocated to the next event. As for the next event, and whether 2020 entrants can expect discounted or preferential entries in 2021 (as is the publicly stated intention of Comrades), Barnes responded, “We can only give a definite answer for 2021 once the financials for 2020 are finalised and once we know that TOM 2021 will indeed go ahead as a normal race.” Meanwhile, the running community hopes that it is indeed a return to business as usual and that Barnes and her team can put aside the trials and tribulations of the last couple of years with a blemish-free run in 2021. (Aside: Some runners immediately posted on social media that they did not want the shirt from a race that they didn’t run. Therefore, runners who don’t want their 2020 Two Oceans T-shirt can donate it to charity through the Two Oceans Marathon Initiative, by mailing [email protected].) IRENE ULTRA MARATHON The 48km Irene Ultra, run around the Centurion suburbs, has quickly become a favourite amongst Gauteng runners. The first edition was held in 2016 and the race has leapfrogged the competition to become the third-largest ultra in South Africa. The ban on organised athletics events due to COVID-19 was announced just two weeks before race day, and according to the chairperson of the organising club Irene AC, Johan Engelbrecht, cancellation of the event resulted in 85% of the normal sponsorship funding being lost. As a result, he says refunding the 3200 pre-entrants would have “killed the club.” Although the race itself does not employ staff, the organising club employs a club manager and support staff, and has fixed monthly expenditure for clubhouse rental, maintenance and cleaning. They also provide full sponsorship (running shoes, kit, race entry fees and transport) to 10 gifted development athletes. Profits from the Irene Ultra are used to cover the club’s running costs as well as to finance the popular Irene Half Marathon in September, which does not currently have a sponsor. Engelbrecht elaborated, “At the end of the day, we are there for running and not to make money. Everything goes back into the sport.” Thinking Outside the Box Nevertheless, Irene AC did not want to leave runners empty-handed and took an innovative approach by quickly organising a virtual ultra. It seems everyone is organising virtual races these days, but the Irene Ultra was one of the first in South Africa, and was the very Irene Ultra 13