The total tab is about $35,000

June 28, 2013 Uncategorized

How the Tour of Alberta went bankrupt despite being a hit with fans

Canada Goose Outlet The bankrupt Tour of Alberta left trails of debt fanning out from its former headquarters in Edmonton to points all over North America, canada goose tainting the legacy of an elite cycling event that uk canada goose outlet beamed postcard images of the province across the canada goose uk shop globe. Canada Goose Outlet

canada goose coats Over five years, 525 cyclists from 33 countries rode through 29 Alberta communities. At its height, the international TV audience was said to be 40 million, the estimated economic impact in the province $25 million. canada goose coats

canada goose clearance sale The Tour financial picture, however, was anything but bucolic for most of its five year run. The Alberta Peloton Association (APA), the non profit entity that operated the race, reported a deficit of $80,390 in its first year of 2013. canada goose clearance sale

Canada Goose Parka Those deficits just multiplied each year canada goose store so that on Feb. 15, 2018, when the APA declared bankruptcy, it reported liabilities of $1.615 million. That means the 2017 race the final, four day pared down edition of the Tour put the APA another $737,000 in Canada Goose Coats On Sale the red. Canada Goose Parka

It was the costliest of the five races.

cheap Canada Goose into the 2017 event we did not expect to lose canada goose uk black friday money, however we were also working right up to the race on additional funding sources, some of which did not ultimately come through, former APA president Scott Fisher wrote in an email responding to questions from Postmedia. cheap Canada Goose

feel that with the APA board we managed a difficult situation to the best of our ability and Canada Goose Outlet aggressively pursued all avenues to save the Tour of Alberta. It is extremely regrettable that in the end we could not secure the funding required and that many vendors suffered as a result. the ride was over, 80 businesses, individuals and cycling teams were left holding the bag. Twenty five of the 80 creditors are based in Edmonton, another 17 are spread around Alberta, 22 in other provinces, 15 in the United States and one in Switzerland.

of our biggest supporters got hurt the most, said former APA board chair Peter Verhesen.

canada goose clearance The Edmonton Journal canada goose black friday sale is a creditor, so too its parent company, Postmedia, headquartered in Toronto. The total tab is about $35,000. That small potatoes compared to the $214,000 owed to The Westin in Edmonton and the $155,000 owed to M31 Design, an Edmonton based TV production company. The largest debt is owed to the Tour former title sponsor ATB Financial, at $221,000, though it relates to a line of credit rather than sponsorship fees. canada goose clearance

list of companies that took it on the chin are all these private businesses that acted in good faith; wanting it, helping it, buy canada goose jacket nurturing it, were willing to be flexible, said Cowan Graphics owner Blaine MacMillan, who was a race fan, vendor and sponsor and is owed $35,285 for signs.

Canada Goose online last three years we have had a debt from them that has carried into the following year. They always were chasing cash flow. They did clear up last year debt, but every stick of signage in effect was supplied free of charge (in 2017). Canada Goose online

disappointed to get stroked for $35,000. That troubling for me. It isn going to kill us or anything but it not nice knowing you going to go to work and then pay afterwards. wondered why the Alberta government propped up the Tour originally but backed away cheap Canada Goose over time and allowed it to die. The fact is, the APA knew from the start that the race would be weaned off provincial funding and would have to expand its sponsorships and collect municipal rights fees to support buy canada goose jacket cheap its budget.

buy canada goose jacket cheap Even so, the province kicked in $9.625 million in grant money over the life of the Tour. That significant support from canada goose uk outlet the taxpayers. The APA also collected $4.6 million Canada Goose Online in rights fees from municipalities, more taxpayer support, and $4 million in corporate sponsorship between 2013 and 2016. buy canada goose jacket cheap

Canada Goose sale The APA didn file a financial statement for 2017, so it unclear how much revenue was raised for that race. Canada Goose sale

buy canada goose jacket But the bottom line was a $1.6 million bankruptcy. buy canada goose jacket

Spectators cheer as Canada’s Ryder Hesjedal climbs a hill in 2013 behind the legislature during the Tour of Alberta’s individual time trials in 2013.

Canada Goose Jackets Spinning wheelsSo what in the fiscal heck happened? Theories abound. Canada Goose Jackets

One vendor said the APA blew it by not giving Canadian cycling icon Alex Stieda a more prominent role, uk canada goose and by ignoring technical and financial advice from Canada Goose online experienced American consultants. Several sources said corporate sponsorship suffered because Calgary wasn part of the Tour after 2014. One source blamed Calgary absence on civic rivalry, another said Calgary https://www.pick-canadagoose.com officials didn view the event as sustainable and distanced themselves, and yet another said the province tied funding to having the Tour head north cheap canada goose uk in 2015 and that canada goose clearance alienated Calgary organizers, who chose not to re engage in 2016 or 2017.

canada goose Verhesen said budgeting timelines hamstrung them. canada goose

canada goose black friday sale have to sign contracts by February/March to make sure we have the Canada Goose sale race going. In a lot of cases the money didn arrive at all or a lot less than was indicated in March or February. There was a lot of support, but not to the level that was indicated in the timeline that we had to make decisions. Vienneau, the APA executive director from 2012 until June 2017, said currency exchange rates hammered the Tour in 2015 because they had several American vendors. canada goose black friday sale

canada goose coats on sale One source raised canada goose clearance sale questions about revenue. But Fisher, Vienneau and Verhesen all said the APA acted prudently to raise revenue and cut expenses after the first race a six day, 10 community affair ran a relatively small deficit of $80,390 on a $6 million budget. canada goose coats on sale

went from six days to five days to four days, said Verhesen. cut the amount of money we spent. We went from a $6 million race down to a canada goose outlet $2.5 million race. Every year we responded in every way we possibly could.

canada goose store dropped the number of world tour teams. All those things. It easy to say yeah those guys spent all the money and weren responsible. That just absolutely not true at all. We canada goose factory sale responded in every way we could to make the race go. it still never broke even, coming closest in Canada Goose Jackets 2016 with a $31,137 deficit. canada goose store

Cyclists massed at the start of the Day 4 competition in 2015 for the race between Jasper and the Marmot Basin ski area. Tour organizers say the currency exchange rates in 2015 hurt the race TMs finances that year.

The downward spiralVienneau said the Tour started as a one off for 2013, backed by $3.5 million from the Rural Alberta Development Fund, and it was a success. Canada Goose Parka The APA basically shut down for several months afterward, until it received vague assurances of continued, though reduced, provincial funding for another three years. For 2014, they changed the revenue model to target $2 million apiece in provincial grants, corporate sponsorships and municipal rights fees.

get through that year with a few hiccups, people who didn pay us, said Vienneau, who wouldn elaborate. we don get paid, and we running a budget as lean as we possibly can, we end up having a bit of a loss. But it was still manageable. lost $266,962 on the 2014 race, and then things really got out of control in 2015. Vienneau said the main drivers were debilitating American exchange rates and a depressed economy that reduced the willingness of municipalities to pay rights fees, which ranged from $100,000 to $350,000, depending on the stage.

The 2015 race ran a deficit of $499,396.

canadian goose jacket that time, the board and everyone took a hard look and said, what are we going to do to move forward? said Vienneau. ultimate goal was to get through 2016 at a minimum break even. Then we could put a plan in place to pay off debt. left the APA in June 2017 to take a position with the Edmonton 2018 Grey Cup committee. Fisher, groomed as his successor, inherited canadian goose jacket a troubled APA and little time to do anything about it. canadian goose jacket

I took over, the organization was in a significant debt position that had accumulated over the previous years and there was also a major decrease in funding for the 2017 event from the Government of Alberta, Fisher wrote. the 2017 Tour of Alberta, the APA took a series of aggressive measures to manage this situation, that included, but was not limited to: reducing the event to four days, eliminating a number of cycling teams, reducing the number of World Tour teams, focusing operations in the Edmonton region, dramatically cutting TV production expenses and significantly cutting APA staff expenses. the race still bled money, adding $737,000 to the APA debt. He said cancelling the event would have only made the financial picture worse.

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