The Professional Triathletes Organisation (PTO) today released the following letter sent to the Board of Directors of Wanda Sports Group Company Limited on 20th September 2019 proposing to enter into discussions to acquire its IRONMAN® business. One of their main goals is to get a fair share of revenues Ironman generates for all professional triathletes, similar to the models the big sports in the doemestic USA have implemented in the past.
20TH September 2019
Board of Directors
Wanda Sports Group Company Limited
Wanda Plaza
Tower B, 9th Floor
93 Jianguo Road Chaoyang District
Beijing, China
Attn: Mr. Hengming Yang–CEO
Andrew Messick
Chief Executive Officer
World Triathlon Corporation
3407 W. Martin Luther King Blvd, Suite 100
Tampa, FL 33607
Dear Members of the Board:
We are writing on behalf of the Professional Triathletes Organisation (the “PTO”) to make a proposal to enter into discussions for the acquisition by the PTO of all of the assets of the Wanda Sports Group Company Limited (“WSG”) related to its worldwide triathlon and mass participation business (the “WTC Triathlon-MP Business”).
The PTO is prepared to consider an all-cash transaction or one in which the existing shareholders of WSG are able to participate in the growth of the WTC Triathlon-MP Business that the PTO is uniquely positioned to deliver. Professional triathletes, age groupers and the triathlon community have for years watched the decline of our sport with dismay as the dedicated executives and passionate employees of the WTC Triathlon-MP Business have been hampered by an excessive debt load and pressures to deliver unrealistic short-term results to financial investors. There are reasons why world class professional sports like the NFL and MLB have debt limits imposed on ownership entities as excessive debt levels limit needed investment and often cause exploitive customer pricing and a decline in standards that sadly have been present, through no fault of the hard-working operating management, in the WTC Triathlon-MP Business for years. We believe the market has recognised this reality as the results of the WSG IPO have proved to be well below expectations.
We have appointed North Point Advisors as our financial advisor, and they have reviewed the public information filed in the WSG F-1 Registration Statement and subsequent 6-K filings. The PTO and North Point Advisors are prepared to begin discussions forthwith with your senior management and your financial advisors and sign any NDA related agreement required in order to commence certain confirmatory due diligence. In light of the significance of this proposal to your shareholders and the triathlon community, as well as the potential for selective disclosures, we will publicly release the text of this letter Monday morning.
We believe this proposal represents an opportunity to realise significant value for WSG shareholders and employees, and that the PTO can uniquely provide a healthy and growing environment for the WTC Triathlon-MP Business.
We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favourable reply.
Respectfully yours,
/s/ Charles Adamo
Charles D. Adamo
Chairman
/s/ Sam Renouf
Sam Renouf
Chief Executive Officer
/s/ Rachel Joyce
Rachel Joyce
Athlete Director
/s/ Dylan McNiece
Dylan McNeice
Athlete Director
cc: David Jacquin
North Point Advisors
580 California Street, Suite 200
San Francisco, CA 94104
Contacts:
Sam Renouf
Chief Executive Officer
Professional Triathletes Organisation
Sam Renouf
David Jacquin
Managing Director
North Point Advisors
About The Professional Triathletes Organisation
The Professional Triathletes Organisation is a not-for-profit entity representing the body of professional triathletes and seeks to showcase the passion, talents, determination, struggles and achievements of the dedicated professionals who strive to realise the highest levels of the sport and inspire all those who participate in triathlon, from seasoned age groupers to newbies.
About North Point Advisors
North Point Advisors is a leading independent investment bank focused on providing financial advice on mergers and acquisitions and raising institutional capital to meet the growth objectives of its clients. Since its founding in 2004, North Point Advisors has advised on more than 160 transactions representing world class brands in over $25 billion of transaction value. Its industries of focus include consumer, wellness, and healthcare, and it has one of the largest and most experienced consumer M&A teams on Wall Street, completing transactions with leading brands such as Starbucks, Jimmy John’s, Kosta Browne Winery, Landry’s, Golden Nugget Casinos, Massage Envy, and Peanuts by Schulz.
