Epic bubble or epic growth?

Are we in a stage race bubble or is it just epic growth? 

The definition of an economic bubble is "trade in high volumes at prices that are considerably at variance with intrinsic values". High volumes, well there are almost more MTB stage races than one day races at the moment and every year another few events enter the annual calendar. In fact there are very few if any individuals who can claim to have done all the stage races in the country. Everyone is doing them, rugby players, soccer players, TV presenters, comedians and even roadies!

 

When the first stage race, the Cape Epic emerged it offered a challenge second to none and a unique concept of being fully catered. Entry fee for the first race in 2004 R3900 per rider, then in 2005 it jumped to R5600 for the 8 day race. Buy 2007 it was costing R5950 and this year in 2011 the entry fee was R14500 per rider and the 2012 fee is set at R17700. That is quite a steep increase in price and if you consider that the race does not offer significantly more value. It is still essentially the same, 7-8 days riding and staying in tents with catering style food. Is that worth paying in excess of R2000 per day for? Its big business for sure with races like the Absa Cape Epic being billed as entrepreneurial success stories. Add into the mix the fact that we have entered an extended global downturn where consumers are demanding more for less and it makes you wonder whether the bubble is getting a bit large. 

Sani2c entries for 2012 are up to R4500 per rider for 3 days riding. Thats R1500 a day for a shared tent and catered food. granted there are tons of extras and free food throughout so definitely more added value there. Both of these events are still oversubscribed and although it is difficult to get an entry initially it seems to be getting easier to pickup an entry later on as the years pass, indicating that the demand may be dropping off. There is a definite heard mentality around these events as everyone wants to get them behind their name. So it definitely appeals to first timers, but for the returning masses who have got the kit and the medals the queations are being asked, what else could I do with this money, take the family on a holiday or organise an overseas riding trip with my mates? 

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