Falconhead Capital is a private equity firm that specializes in investing in the consumer, leisure/lifestyle, and media sectors. Recently, Falconhead Capital purchased the three year old Denver Marathon along with the Rocky Mountain Half Marathon, bringing Falconhead Capital’s total ownership to 25 races. Races are not the only thing Falconhead has been purchasing, earlier last year they purchased three endurance companies, forming them into one, called Competitor Group, Inc. The three companies purchased were Elite Racing Inc., the creator of the Rock n’ Roll marathons, La Jolla Holding Group, LLC, owner of triathlete magazine, and Competitor Publishing, Inc. The newly formed company, Competitor Group, Inc., is now the largest endurance sport focused company in the United States. Falconhead Capital said they decided to form Competitors Group, Inc. in order to enter into the endurance sports business because of the very specific and high-end demographic of participants. They point to an age range of 25-54 years old with an average annual income of $75,000-$95,000 in endurance event participants.
This got me to thinking, I’ve always just participated in these races but I never thought about the business side of them? It makes sense that endurance sport participants are a highly desired demographic since they are usually made up of people who have determination, drive, and a work ethic, which probably leads them to success in their professional lives as well. A company as large as Falconhead Capital can use the events to promote their other businesses and private equity firm to this coveted demographic. In addition to the events being great marketing opportunities, the income streams can from many sources such as entry fees, sponsorship, television, merchandise, and fitness expos can make race organizing a very profitable business.
Since I usually don’t finish in the money in these races, running is not a profitable business for me; however, all of us participants should be aware that we are Running this Business. Support your favorite races and small endurance businesses.