Over the past 20-plus years, Medalist Sports has been a key player in shaping the current landscape of pro racing in the United States. This company is the most widely recognized bike race production company in the U.S. today. It oversees nearly every component of a bike race — Medalist plots the course, negotiates with state and local governments, handles the marketing and public relations, manages volunteers, and even fills out the required accreditation documents with the UCI, among dozens of other duties.
The Tour de Trump, Tour DuPont, the Tour de Georgia, Tours of Utah and Missouri, the USA Pro Challenge and its successor event, the Colorado Classic/Velorama, as well as the 2015 UCI Road World Championships in Richmond, Virginia, were all Medalist events. Medalist also developed the original business plan and produced the Amgen Tour of California from 2006 to 2015. Over almost three decades, the company has navigated the turbulent waters of changing venues, schedules, politics, sponsors, and race owners. Despite hitting several setbacks, Medalist has continued to set the tone for U.S. pro racing.
Nearly any cycling fan has experienced a Medalist event in person or on TV, but the company’s history is not as well-known. Given the company’s outsized influence on American pro road racing, The Outer Line interviewed a number of key Medalist staff, current and present, to tell the story of the company’s history.>
Much has been written about that first Medalist event, not entirely because of how it changed U.S. racing, but more so because its financial backer was the current President of the United States, Donald Trump. Now, almost 30 years after that inaugural Tour de Trump, Plant has also moved on and is now a high-ranking business executive with influence across multiple sports. He is President of Development for the Atlanta Braves baseball team, the Chairman of the Board for U.S. Speed Skating Federation and, until recently, a member of the Management Committee of the Union Cycliste Internationale (UCI). (Plant is himself a former world-class speed skater, and represented the U.S. at the 1980 Olympics.) Plant formally disbanded Medalist in 1996, but has continued to be a strong influence within pro cycling for many years, and continues to consult with Medalist in an advisory role.>
The initial Tour de Trump finished with a splash in Atlantic City, and with characteristic swagger, Donald Trump stated, “I would like to make this the equivalent of the Tour de France.” Although Sports Illustrated described the race as a “smashing success,” Trump later withdrew his financial support and berated his executive staff over its losses, as documented by John R. O’Donnell in the book “Trumped!” “I never knew I was going to lose all this f—king money on this!” Trump exclaimed at the time. Trump pulled out, and the event would later be rebranded as the Tour DuPont, for its new sponsor, and lasted until 1996.
The Original Tour of China
Medalist took a major step forward during the Plant era in 1995 when it had the opportunity to put together the first major professional bike race in China at a time when that country was on the cusp of emerging as a global economic superpower. The plan for this event was a start in Hong Kong (then still under British control) and the finish in Beijing. Grey Advertising put together the “pitch” package, and Plant helped position Medalist to produce it. Strange though it might seem for an endurance athletic event, British American Tobacco’s Kent Cigarettes was the named the main sponsor of the event, and a deal was struck between China’s government, Kent, and Medalist to put on the race.>
At one point, the prologue in Hong Kong was in doubt. Steve Brunner, a Medalist alumnus from that race who later founded King of the Mountain Sports, recalls that the operations staff did a course run-through at 9 p.m. the night before, but in the morning, one of the city’s agencies had installed a heavy-duty chain link fence to block the starting road. “On the fly, our operations guy had to get a pair of bolt-cutters and cut open the fence. But then traffic started flowing out into the road, and there were no traffic police to shut it down. Our people were literally throwing themselves on the hoods of the oncoming cars to stop traffic!” Birrell says this event led to some quick improvisation by the race staff. “Mike called everyone together and completely flipped the script: All the stages were to be rearranged due to differences with government authorities. And somehow we got it done.”
Hair-raising stories from these early years of Medalist are legendary. John Gatch, a long-time regular around U.S. cycling, was also an employee of Medalist in the early days and has his share of vivid memories from the Tour DuPont and Tour of China as well. He recalls one instance of being wined and dined at a fancy lakeside restaurant somewhere in southern China, where his hosts had exclaimed about the great quality of the fish dishes, fresh out of the lake. “When you ordered fish,” Gatch recalls, “you got the whole fish — eyes, tail, scales and all. But it was more familiar to us than a lot of the food we were eating, so Birrell and I both ordered up the fish.” While waiting for the delicacies to arrive, Gatch went upstairs to the men’s room to relieve himself. Something seemed a little different, and as he stared into the strangely quiet toilet, he realized it was simply an open hole into the lake far below. He hurried back downstairs, “just in time to see Jimmy working on a big bite of fish in his chopsticks.”
For several years, the key Medalist people dispersed and took on different assignments. Birrell went to work with Plant at Turner Sports, during which time he came up with a preliminary plan for a major seven-day Tour of California event — a plan that sat on the shelf for a few years. In 2003, Chris Aronhalt became the chief operating officer for the first Tour de Georgia, later bringing in Birrell and other members of the former Medalist team to handle the event production. Shortly thereafter, Anschutz Entertainment Group (AEG, the eventual owner of the California race) expressed growing interest and asked how soon a California tour could take place. As a result, in July of 2004, Birrell and Aronhalt incorporated Medalist 2.0 with these two major stage races as the initial assets in its portfolio.
The early Tour of Georgia races were highly successful, in part because of the participation of Lance Armstrong’s U.S. Postal team. The event was a big boost for the visibility of domestic racing, as well as to Medalist’s growing resume and successes in major race organization. Medalist designed the Georgia course like a microcosm of a European stage race. Its calendar slot, Armstrong’s presence, and the dominant U.S. Postal team’s participation to prepare for the Tour de France all helped publicize and legitimize the race. For a few years, the race was able to attract a top level of competition, raising overall public interest to view the event — both in person and on television. Medalist 2.0 began to thrive.
The Tour de Georgia and the later Tour of Missouri, also managed by Medalist, only lasted a few years. Georgia’s last version was in 2008, and Missouri only ran from 2007 through 2009. Both of these races were owned and substantially financed by established non-profit entities, supported by their respective states. Tourism has often been the underlying economic driver for big bike races (this is true even for the Tour de France) where public funding, matched by private sponsors, geared toward promoting tourism and economic development makes it all possible. Both races had measurably positive economic impacts on state tourism, but both eventually died due to an unpredictable combination of political changes and subsequent sponsorship shortfalls. Once public funding dried up, the race production costs simply could not be covered by the remaining sponsors.
According to several Medalist observers looking back today, the company’s flagship Tour DuPont was really the last time that there was a top pro cycling event in the U.S. that achieved a truly self-sustaining and stable financial model. As Tim Miller, another Medalist alumnus and the CEO of the Richmond 2015 World Championships points out, since 1996 virtually all of the major U.S. stage races have either been tied to a wealthy private patron, or to (relatively unpredictable) public government funding. Very few stages races have been able to build the sort of momentum and financial return on investment that is required to build long-term private sponsorship value and hence financially sustain the event.
Brunner shares Miller’s perspective on DuPont and offers the following observation of why some big races can succeed while others fail. “The initial sponsorship, usually from a sole source, like an individual or corporate patron, or a government economic development agency, should really only be about 60 percent or so of your total funding. The rest has to come from other sponsor sources and revenues, or you’ll never balance the budget. This was a fundamental principle of Plant’s philosophy which has stood the test of time; you have to work just as hard to sell an event as you do to organize it.”
The Amgen Tour of California, owned by AEG and financed by the international pharmaceutical company that owns title sponsorship of the event, has turned out to be a more successful and long-lived event. Medalist staged the inaugural eight-stage event with AEG in 2006, and the event quickly built itself into the premier bike race in the United States, and eventually gained UCI WorldTour status in 2017. Originally held in February, the Tour of California eventually repositioned its schedule to warmer weather in mid-May. The race has consistently been able to attract many of the top international teams and individual riders and is now perhaps the most successful American bike race in history, even though it currently overlaps with the Giro d’Italia. Medalist was a key part of the race’s success, and likewise, the event was a major driver of Medalist’s growth.
Concurrently, Medalist began to produce the USA Pro Challenge, another week-long stage race that launched in August 2011. This popular event quickly grew to become the second-most significant racing event in the States, also able to attract a number of top international teams and riders. That event’s peak may have come when Rory Sutherland won the stage atop Flagstaff Mountain during the 2012 edition, with tens of thousands of people in attendance near the finish line in cycling-mad Boulder.
But perhaps Medalist’s most significant project was managing the logistics and production for the UCI Road World Championships held in Richmond, Virginia in September of 2015. This successful one-week-long series of events raised the visibility of bike racing in the U.S. and created a considerable amount of goodwill in the local region. It was also seen by many as a gateway to new investment in U.S. pro cycling and new events, but as often happens, the road ahead took a different direction.
Strains and stresses
In a surprise move, after 10 years of collaboration, Amgen Tour of California owner AEG abruptly canceled the contract with Medalist after the 2015 edition. Then it turned around and hired Tour de France organizer ASO (which had previously been involved only in the TV production/distribution for the race) to take over the event management. Although AEG publicly commended Medalist’s job, the unexpected development hit Medalist pretty hard. “There was no advance warning, and it was a hard pill to swallow,” says Birrell. “I wrote the business plan in 2001, we staged the first race in 2006, and successfully managed the event for ten years. We definitely lost some sleep over it, but I guess that’s just business.” At the time, Aronhalt told VeloNews, “While disappointed to see the partnership end, Medalist Sports is immensely proud of its team and the 10 great years of partnerships, accomplishments, and memories.”
There has been much speculation about AEG’s decision to dump Medalist, and ASO’s strategy or intent with the race going forward. Some observers believe that the costs of putting on the race have simply outpaced the revenue potential of the event, leading to budget shortfalls; however, ASO is unlikely to be able to produce the race much more cheaply than Medalist did. Others believe that ASO was trying to execute an aggressive competitive strategy to expand new races in its portfolio, which compete directly against Giro d’Italia owner RCS Sport — drawing attention, racers, teams, and sponsors away from its largest business rival. That strategy may be working, with the California race being elevated to WorldTour status, and becoming a viable alternative to the Giro. Whatever the true reasons for the change, Medalist was caught in the middle of this larger drama, and it was definitely a setback for the company.
Birrell declines to wade into this discussion, simply saying he believes that all the race owners should work together to build the value of the sport. “Philosophically, we should all be subscribing to the model of an Olympic sport. Instead of focusing on short-term objectives, we ought to all be working to build up the sport, not stepping all over each other along the way. That’s the only way we can increase the value of cycling as a spectator sport in the long term.”
Shortly after losing the California race, a second setback hit Medalist. The USA Pro Challenge race suspended its 2016 event, primarily due to a lack of sponsorship support. Hence, within just a few months, Medalist was faced with the abrupt loss of its two biggest projects. However, the company continued to forge ahead with a number of less visible but still demanding events. It staged over 15 events each in 2016 and 2017, including the Larry H. Miller Tour of Utah and the (recently cancelled) Tour of Alberta, as well as several high-profile charity rides. In addition, Medalist has continued to act as a consultant to other race organizations, such as the organizing committees for the world championships in both Bergen, Norway and Doha, Qatar, as well as the USOC and its para-cycling efforts. The firm has also worked with various governmental economic investment agencies on possible new events.
New directions and constant change
The USA Pro Challenge announced its suspension some six months after the successful Richmond world championships. But shortly afterward, a new consortium of Denver businessmen led by sports retailer Ken Gart and Liberty media executive David Koff — in conjunction with the Colorado Governor’s office — announced the founding of a new company, RPM Events Group, to step into the empty slot left by the Pro Challenge. RPM Events Group signaled its intent to produce not only a new event to fill the calendar void of the Pro Challenge in Colorado but also to produce a new race in the Richmond, Virginia area to build upon the excitement and fan interest created by the earlier world championships. RPM retained former Medalist executive and Richmond organizer Tim Miller to help spearhead the efforts in Richmond, while simultaneously developing the successor to the Colorado Challenge in Denver.
Although the Richmond part of the project eventually fell through and Miller left the organization, the new “Colorado Classic” race came to life with a brand-new format and a new name: Velorama. Utilizing a “hub and spoke” racing format to reduce logistics and production costs, Medalist helped to shape the project and ultimately bring it to life. Concerts by two headliner bands and a number of fan-friendly expo events were co-scheduled, in an attempt to bring in a larger and more diverse audience. The new plan and format were generally successful in the first year, though terrible weather marred one of key days of racing, rendering television coverage impossible. Both Medalist and RPM, via spokesman David Koff, are however very optimistic about the 2018 edition of the Classic, learning from the inaugural race, and having now tweaked the race course and schedule of events.
A positive fan experience and strong local attendance are common threads of the Medalist race model. As Birrell recently concluded, “Whatever happens to us in the future, it will always be nice to know that many pro racers first got interested or were inspired to compete after seeing events that we helped to produce.” Although the Coors Classic ended almost 30 years ago, Medalist has proven that U.S. races can still compete with some of Europe’s most iconic events.
However, at the same time, the bar for success, profitability, and sustainability in U.S. races continues to rise due to increasing overall production costs. Alternative race production models are emerging as those production costs continue to rise. Some believe that the race owners themselves have a stronger incentive to manage costs, and can be more cost-effective in producing their own events. Others believe that only third-party, highly specialized contractors like Medalist can effectively minimize costs and optimize outcomes. Different organizers continue to experiment with different plans and approaches to broaden their appeal, bring in more diverse audiences, and keep production costs manageable.
Looking back, Medalist Sports has been both a reflection of the vitality and changing directions of U.S. bike racing, as well as a bellwether for where it may be going in the future. The company has encountered many challenges and ups and downs along the way but has consistently demonstrated the spirit and willingness to adapt and innovate as needed, in order to remain a key player in the success and development of U.S. cycling. Whatever the future holds, and regardless of what direction domestic racing takes going forward, it seems likely that Medalist will continue to be an important part of the story, and will undoubtedly continue to make its mark.
Source : http://www.velonews.com/2018/03/the-outer-line/the-outer-line-a-history-of-medalist-sports_458799