Sports events producer GS Marathon Israel Productions Ltd. is organizing the first full Tel Aviv Marathon in 15 years. The race will start at the Charles Clore Gardens on April 24 and aims to attract 10,000 runners of all ages, promises company co-founder Avi Stein. Stein founded the company with Ofer Padan less than a year ago, after organizing sports tournaments for years.
Marathon Israel's business model resembles the models of other city marathon organizers around the world. The field is highly developed, and generates revenue for both the organizers and the host city thanks to the runners and the tourists who shop, eat, sleep, and seek entertainment at venues in town.
According to Marathon Israel's model, the company will receive NIS 650,000 from the Tel Aviv-Jaffa Municipality, of which NIS 400,000 comes from the city's centennial foundation. The rest of the money raised, from which the company will derive its profit, depends solely on the company's ability to market the event to the participants and sponsors, and the sale of licenses for concession stands at the starting and finishing lines.
Two months before the starter's shot is fired, Marathon Israel has succeeded in harnessing sporting goods giant Adidas AG (XETRA:ADS; LSE:ADI) and the Hapoel Center, an organization for physical fitness, as sponsors. It is also negotiating with bottled water companies to provide 70,000 bottles at 15 drink stations along the route, and with the healthcare organizations to brand some of the sections.
Stein says, "These are not easy economic times, but in contrast to other races in Israel where sponsorship is paid in kind, we get cash directly."
An additional 15-20% of Marathon Israel's revenue will depend on participation fees, which range from NIS 60 to NIS 250 per person depending on the route run. In the best marathon tradition, in addition to the full race of 42.195 kilometers, there will be 5 kilometer and 10 kilometer routes.
Padan says, "We expect about 800 participants for the full marathon, and 9,000 additional runners in the other races."
"Globes": How do you attract so many runners?
Stein: "Israel has 1,200 to 1,300 people who've already run a marathon. We're also trying to recruit six to eight Kenyan runners to lead the marathon, at a cost of $2,000 per person for tickets and accommodations. This is even before the financial prizes that will be awarded for the different sections. Competition at each section will be by five-year cohorts, with runners aged 18 to over 70. More than NIS 200,000 will be awarded in prizes in 36 categories."
The prize money is less than the NIS 537,000 that was awarded at the Kinneret Marathon in January. Stein explains, "The Tel Aviv Marathon can be registered on the international circuit of marathons only a year after a full marathon is run. For this reason, this year will still basically be semi-pro, and the prizes will reflect this."
With all due respect to the full marathon race, Stein and Padan are well aware that most revenue will come from the other, more amateur, races. "Running is not just a matter of a healthy lifestyle, it's also a challenge," says Stein to explain why he expects 10,000 runners in April, and why tens of thousands of aggravated drivers will be stuck in giant traffic jams.
"Not everyone can score a goal, not everyone can sink a basket, but nearly everyone can run at least some distance. Running is a status symbol for many people who want to brag about their race times the next day at the office. Running can also be a family experience; it's something that people want to notch up on their belts. Saying 'I ran a marathon' says something to people around you."
The vision is nice, but how will you market it to potential participants?
"We contact workers committees and companies to invite them to register their members and employees. We're trying to organize family package deals for runners from outside Tel Aviv. A couple comes with their children, runs in the race, sleeps in Tel Aviv, and goes out to restaurants. We also intend to bring foreign tourists to the event, even though we know perfectly well that this isn't very realistic in the current times. Nonetheless, I've already received two calls from the Irish Embassy which forwarded calls from people wanting to participate in a marathon in the Holy Land. Just as I've travelled to marathons in other places around the world, there are people who will be happy to discover a new place to go."
This is a time when sponsors are cutting agreements with sporting events. What's your edge over the competition?
"In contrast to a football or basketball game where the experience of the target audience is in the stands, here it's on the field. You share in an event like this and take away an experience of a lifetime. The brand that is affiliated with this experience can be burned into your consciousness."
Published by Globes [online], Israel business news - www.globes-online.com - on March 2, 2009
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