Proposed Athletics Ireland Race Levy 2022
Drove My Chevy to the Levy..... But the Levy Was Dry!
March 2022
With apologies to Don McLean
Athletics Ireland plans to introduce a levy, in every registered Road Race, of €3 per entry, for each and every entrant who is not an Athletics Ireland member - the levy will not apply to AAI members
This article, produced by John Quigley, does not necessarily represent the views od Cork Athletics County Board
Why Haven't We Heard of This Before Now?
Late last year, Athletics Ireland briefed a limited number of groups, including Munster Athletics, separately, about plans to introduce an online entry system for all registered Athletics Ireland events and received a frosty reception
After the Munster Briefing, AAI apparently informed Leinster and Dublin that Munster and Cork were in favour of the levy. Munster had not agreed and Cork hasn't even been briefed! Given the low profile (secrecy?) of the AAI campaign, and the high impact of the levy, one must question the wisdom of imposing this levy. It comes across as draconian both in impact and also in democratic terms
Why hasn't AAI published this more widely? A very good question! This proposal is one of the most far reaching for decades, with huge implications at all levels of the organisationa an beyond. It is bad enough that clubs and race organisers haven't been informed,but that County Boards have notbeen briefed, or even received the briefing document is absolutely inexplicable!
Athletics Ireland Briefing Document on Proposed Integrated & Digitised Permits-Events-Results
PDF Document
Analysis/Editorial
For probably forty years or more, road running has been seen by AAI, and its predecessor, BLE, as the 'poor relation'; of athletics, doing little to support or promote the area. Quite frankly, until about a decade ago, road racing was effectively ignored by the organisation
In the past decade, AAI has taken notice that there has been a massive explosion in road races, both in terms of the number of races and also the numbers participating. The organisation has latched itself onto several commercial road races, e.g. Samsung Night Run, Airport Run and Rock 'N Roll Half-Marathon (incorporating the National Half-Marathon Championship), earning a significant return for its involvement
It hasn't been enough, now AAI proposes to tax all the non-AAI participants entering all registered races. In return, AAI will store all their results in their own personal file, which they can access online ...providing that they sign up for and pay an additional annual subscription!
Why is this coming in?
Apparently AAI is strapped for cash, is reliant on accrued grants and subvention and may undergo a financial ‘squeeze’ in the near future, so needs another source of funds. Currently the organisation employs 32 (+ or -) full time employees, and others were 'let go' around the time of the start of the pandemic
When Will This Take Effect
It isn’t clear when exactly this will come it, but it is expected that it will be soon. One suggestion is that the proposal will be put before the Athletics Ireland (Company) AGM in April, while another is that the Board will implement the levy under its own authority, without the necessity of Congress or the AGM voting on it
How Much will This Cost?
It won't cost AAI registered athletes anything - AAI registered athletes are exempt (at least for the foreseeable future) from the €3 levy, however anyone who is not AAI registered will be liable to the additional €3 levy each and every time they enter an AAI registered race, irrespective of the entry fee, i.e. a race charging €10 would become €13 for non-AAI, and €30 would become €33, and so on
Effects of the Levy Introduction
Take the Cork Women’s Mini-Marathon: In 2019, there were approx. 8,200 entries. Of these only 162 listed themselves as AAI members on their online entry form. So, with 8,000 unregistered participants, Cork Mini-Marathon would be paying €24,000 to AAI
In 2019, there were 101 Registered Races in Cork, with 40,480 finishers (entries were almost certainly higher, with typical pre-entry dropouts of approx. 10%). 11,503 of these listed an AAI club on their entry. This corresponds to 28.42% registered AAI members. At €3 per head, AAI would receive €86,931 from Cork alone. Add to this the regular 'no shows', normally around 10%, bringing the AAI 'take' from Cork to close to €100,000
In return, Cork would receive 100% of the Permit Application fees from the 101 races (fees vary, but say all are at the club permit cost of €50 each. This would amount to €5,025, but counties already receive a rebate of 10%, so Cork would have a net gain of €4,522,50, against AAI’s €95,600 (€86,931 + 10% (dropout allowance))
How Will it Affect Race Organisers?
AAI argues that it won't affect race organisers at all, as the punter is paying! They also believe that the levy will be an incentive for unregistered athletes to join clubs, become AAI registered, and therefore be able to avail of the nominal entry fee (€3 less)
However this a very simplistic view, for several reasons:
Who Gains?
The biggest winner in this will be Athletics Ireland, with a new income stream of an estimated minimum of €750,000, and possibly €1,000,000 - and this probably understates the revenue likely to be generated
The County Boards will gain by 90% of the event permit fees, up from the current 10%.
This will amount to approx. €4,500 more in Cork's case
Individual athletes in the High Performance programme, and clubs and individuals availing of Coaching programmes: AAI says that the profits from the Levy are to be ringfenced for the HP and coaching program, however there is no indication that this will supplement the existing funding in those areas, or if existing HP and coaching funds will now be diverted for other uses
Who Loses?
The biggest losers are the Road Races. There is absolutely nothing in this for them. They will be required to increase their entry fees to cover the levy. This may be a deterrent to entries, particularly with events that have a high charity/fundraising focus
Charity Fundraisers
A significant number of registered events are charity fundraisers, and entrants for those events are typically very price sensitive, often arguing strongly that 100% of the entry fee should go to the charity in question (overlooking the fact that there are costs associated with running any event). Furthermore charity events attract a significantly higher proportion of unregistered participants, due to the specific goal of the event.
It is likely that the organisers will question the wisdom of running their events under an AAI permit if AAI are seen to be receiving more of the proceeds from the event than the charity organising the event
The organisers are taking all the risk, while AAI will receive €3 per unregistered participant, irrespective of the event costs and overheads.
AAI Club Races
Many races, particularly those organised by smaller clubs, are run a 'break even' or perhaps make a small profit. Their primary purpose in putting the race on being to 'showcase' the club, and also give return to sponsors, supporters and the local community
Clubs organise races for many reasons including:
- To raise vital funds to keep the club going
- To publicise the club and, maybe, promote the club's sponsors
[Athletics Ireland have said that they would like to end the smaller races (presumably because of the AAI administrative load, however the administrative load is the same for both larger and smaller races)]
Commercial Events
AAI itself, in association with private enterprise, is a major player in organising commercial events, will be laughing all the way to the bank. For every non-registered athlete entering a commercial AAI event, AAI will take another €3 for itself! It remains to be seen how the other big commercial events will react to this levy?
Competitors
Athletics Ireland says it “Wants to Own This Space”. Currently it does not own the space, and the space is occupied by many other established direct competitors, with the free Parkrun endorsed by Athletics Ireland, while, in several areas, organisations such as the BHAA manage events with entry fees of as little as €5. These have been organised for many decades, and significant numbers of AAI members are also BHAA member. Along with these, there are lota and lots of unregistered events run all over the country
Parkruns – Free Parkrun is not going to change. They will remain free, and will be more attractive if the €3 levy is introduced
BHAA - €5 BHAA races will remain the same. They have their own event model/template. BHAA events in Cork, of which there are 22 in the 2022 calendar, command entries of around the 300 to 500 mark, with several exceeding that, some with 1,000 + entries. The proposed levy will increase their attractiveness
Unregistered Events
Unregistered commercial events have always been a very serious competitor and threat to registered events, and many, with hype and slick marketing, can command entry numbers of several thousand
Organisers of unregistered events will also be laughing all the way to the bank. If they don't implement the levy, their races will have the competitive advantage of being €3 cheaper than the race down the road. It is more likely that they will just add €3 to their entry fee and gobble up the €3 for themselves...Thank you very much!
If an increased profitability were then to materialise, it is likely that more of these events will enter the market
Unregistered events have been with us for years. The second running boom (the first one started in the 1980's) probably began in the mid/late 2000's. Suddenly, with the huge increase in participation number, everyone started organising races to raise money for whatever cause they supported, and unregistered commercial events started popping up, when carpetbaggers realised there was money to be made in this game
Over the past 8 years, or more, Cork Athletics has proposed several motions to AAI Congress to limit/manage or sanction participation by AAI members and clubs involvement in unregistered races. These were defeated by Congress, with a major factor being the stringent opposition and the massed vote against ...termed 'The Red Tide' due to the show of Red 'No' voting cards ...by the Board, in particular
Now, it appears that the Board have had a 'conversion on the road to Damascus' and are proposing sanctions against registered AAI members taking part in unregistered races, suggesting that such athletes might be suspended. Good luck to them with that <rolling eyes>
Sanctions such as these are likely to work only with the cooperation of members, clubs and County Boards. It is difficult to see these moves being accepted and implemented by clubs and Boards when these same groups are expected to act as tax collectors for AAI
What do Race Organisers Think?
Discussing this with several race organisers, there is universal opposition to the measure, with many organisers suggesting that they will be taking their events out of the Permit system... and those are the AAI members!
There is already very little benefit in getting a permit for the non-club events... and now they are being asked to add a levy that may bring in more for AAI than the organisers gain in net profit/return ...expect an exodus of such races
Consequence of Race Organisers Declining to Enter the AAI System?
What are the Consequence of Race Organisers Declining to Enter the AAI System, including the Levy Collection?
It isn't clear what the consequences will be for Clubs. Maybe they will be suspended. In such a scenario, it is likely that many clubs will simply withdraw from Athletics Ireland, bringing their members with them
With non-club events, they simply won't even apply for a permit in future. The biggest problem would arise if a County Board were to decline to collect the levy. This would put AAI in an impossible position - Does it them suspend that County Board?
The Emperors New Clothes
Is this really enforceable? Probably not
AAI wants to own this space. It already shares it with BHAA, Parkruns and the many, many unregistered races. It simply cannot take those spaces back..... and, by giving organisers of currently registered events the incentive to drop out from registering, it will only add to the unregistered races problem
And...obviously...once outside the system, it will be exceeding difficult, if not impossible, to bring them back in
Personal Data
What about all the Personal Data AAI wants to collect, both for members, non-members, along with anyone who buys an entry ticket for an AAI event?
That's whole new can of worms ... with implications for data protection, GDPR, child protection and much more. There are many questions to be answered, including who, exactly, has access to all this data, who it will be shared with. It appears that AAI wants to commercialise the data.
These are all questions that need to be addressed ....maybe another article!
Your Membership Data
Clearly an awful lot of companies will have access to your personal data, in order that entries can be processed. How much data can they access? Who is the Data Controller? Is it AAI?...or someone in Eventmaster?
AAI wants to get involved in merchandising and special offers. Is membership and/or non-members data going to be sold/available/pffered to third parties?
An indication of AAI's intentions comes from ticket sales for the recent National Juvenile Relays, Intermediate and Masters Cross-Country Championships, in Castlelyons, Cork. During the week before the event, Cork Athletics informed senior AAI personnel of difficulties people were having buying tickets, and suggested that anonymous purchase would help.
The AAI official's response was to refuse that option, saying "We want to collect their data". As it turned out, on the day before the event, there were such problems that AAI relented and allowed cash at the gate, collecting a reported €10,000 on the day. That corresponds to a lot of people's data!
Data
Who owns the data?
It looks like the data, including AAI registration data, will be shared across several service providers. Will AAI retain control over the data? More importantly, will AAI own the data? The AAI membership system is run by Eventmaster
It now appears that all race entries will go through Eventmaster as well...and there's a suggestion that merchandising, advertising and various other matters will also be run through the system. This amounts to a huge enterprise and begs the question Is this Athletics Ireland's enterprise, or does it belong to Eventmaster?
If the data belong's to AAI, how much is it paying for development of the system? If it belongs to Eventmaster, how much is AAI paying for the use of the system, and what happen's when AAI and Eventmaster eventually part company?
Is AAI paying for the system development?
This system is being developed for AAI ….Or is it for Eventmaster, with AAI assistance and cooperation? Is system development paid by AAI, or is the provider developing it in the expectation that AAI will go with that provider’s service? Will AAI own the system? What happens when AAI and Eventmaster part company? These are all valid questions that need to be answered
What Data Protection Controls will be in place?
With data shared across several providers, how much data will be shared, and what controls will be in place? Specific consent will be required for any data that may be shared with third parties.
The entire area of data usage by AAI is badly in need of clarification, with nothing short of full disclosure with respect to data usage, data storage and integrity, what specifically AAI does intend to do with the data, and many other areas
How Many People Will it Take to Operate This System?
This is a huge proposal, with significant financial and data implications. AAI claims that there are 650 registered races, with an average of 400 entrants. This means that the accounts of 650 race organisers must be managed. In addition 650 race results and a database containing results from up to 260,000 individuals must be managed
There are lots of transactions across this process and there are lots of steps in the process, which is far from streamlined. Each transaction must incur a charge. One must query how much will actually accrue to AAI. ....And how much will accrue to third parties. Is it really to the benefit of Athletics?
The AAI Briefing Document
Slide 1 - Cover Page
Briefing meetings were held with some County Boards, some club representatives, and also with third parties, including the Dublin Marathon organisers. While a couple of Cork County Board Officers attended the Munster Athletics briefing in December, Cork County Board has not yet been briefed by Athletics Ireland, nor has the Board been given a copy, by Athletics Ireland, of this Athletics Ireland’s briefing document
These briefings have been met largely with silence, or non-committal, nevertheless it appears that the separate meetings have been informed that each of the other parties that have been briefed have all agreed to the new system, and the associated levy. It appears that silence and non-committal is being taken as consent. Athletics Ireland Briefing Document. Each group has been informed that the other group(s) are in favour of the proposal
A copy of the Athletics Ireland has recently been passed on by one of the parties who were briefed, so some of the proposals are a little bit clearer, however the document is far, far from clear
Key Points From Document
- Athletics Ireland plans to introduce an online entry system
- The online system will require all race entries to be via Athletics Ireland’s system, provided by Eventmaster
- There will be an option available for smaller races taking ‘cash entries’
- All entries from Non-Athletics Ireland members will be subject to a €3 entry for each race
- AAI members will have reduced fees in AAI Accredited events
- All race entrants will be covered by Personal Accident Insurance
- All race results will be entered in a database accessible via the AAI Member’s personal portal, while non-members will access theirs via an account that they will open when they enter their first race
- County Boards will retain 100% of all permit application fees (Currently Boards get 10%, while the remaining 90% is supposed to be ringfenced for training and Coaching)
- Profit from the Levy is to be channelled towards High Performance, Coaching and Development
- Members are to have access to benefits, including discounts
Clubs and Boards
- Benefits Clubs and Boards “will benefit from further benefits”
- Clubs and Boards will be able to access race results through the portal
Promoter & Organiser Benefits
- Marketing of their event
- Access to the Athletics Ireland AAI’s “extensive database” and weekly and monthly newsletters
- Personal Accident cover for all participants Event Promotion via Athletics Ireland Social Media Channels
- Participants will be able to register their interest before the event (opens)
- Athletics Ireland “Wants to Own This Space”
Other Details
Athletics Ireland believes that the levy will lead to unregistered race entrants joining clubs, and proposes to reach out to, and direct people towards clubs
AAI proposes to streamline the permit system [This is already in place, however there have been some teething troubles with the online system introduced last December. In any case each County Board has the final approval for a permit, so sign-off will still await County Board meetings] It also appears, in spite of having an 'online permit system', that a cut an paste system and/or transcription is being used, as spelling errors have appeared, distances have changed and races have been moved into other counties... even provinces!
It is often said that “The Devil is in the Detail”, however this briefing document has lots of 'Soundbites', but is very, very sparse on detail
Some of the proposals are already in place, while many should have been taken as a given years ago, e.g. AAI feel that the identification of events as AAI registered is a benefit of this system, whereas Cork Athletics has been, for years, begging AAI to implement a system whereby events can be readily identifiable as AAI registered events - see MYRunResults fixtures calendar, for example
There is much aspiration and ‘soundbites’, for example Benefits for Clubs and Boards says that they “will benefit from further benefits”. What’s the benefit of suggesting that a benefit is to have the benefit of further (unspecified) benefits …unless you simply like saying benefit!?
Entries may still go through and of the current third party providers, but will then be passed through to Eventmaster/Athletics Ireland system. What additional charges will eventmaster make on each of these transactions? Its often said that ' There's no such thing as a free dinner!" Clearly, any transaction going through Eventmaster will be liable to a charge. Will this be added to the €3, or included in it?
Slide 2 - System 'Theory'
The online Permit System has been online since December 10th, however, to date, rather than being streamined, the process, at least in the case of Cork, has become bogged down. When the system was first mooted, Cork requested that it would be able to 'test drive' the system before it went live. When the system went live, Cork had not been given the opportunity to test it
One Time Levy or Annual Subscription
It isn't clear if this is the €3 levy, or is a separate additional levy. This slide seems to suggest that there is also a separate annual fee, while other slides refer to one-day licences. From (4) on the slide above, it looks like non-members will pay an additional annual subscription
Reduced Entry Fees For AAI Members
It appears that, rather than have the benefit of reduced entry fees, AAI members will, at best, simply be paying €3 less than the new, higher, fee payable by Non-AAI entrants
Results Portal:
One of the benefits outlined under (4) is that AAI members and Non-Member subscribers will be able to access their own results online. Most runners will already be keeping a record of their results, so this is unlikely to be seen as a significant benefit
Slide 3 - Permit Application Process
Permit Application Process
An online permit system has been coming for quite a long time. Now that its here, there are some 'teething problems'. Moving the process online is a welcome, for several reasons:
- Primarily because all permits must go through the same process. Until now, problems often arose from permit applications being sent directly to AAI HQ, rather than the County Board, as is/was the process, often with significant delay
- Permit applicants can see how their application stands, and at what stage of the process it is at
- Athletics Ireland benefit as they now receive the permit application fee at the outset of the process
- It also removes problematic applications, even if they were referred back to the applicant, e.g. Lists of race names and dates on a page torn out of a a spiral-wound notebook
Problems
The system was launched without allowing County Boards test the system, as Cork had been promised
No system training or documentation has been provided to date
Cork Athletics County Secretary Anne Murray is the designated person for permit approvals, however she has only received her system login in the past month, in spite of the system going live on December 10th
Note: Cork County Board is still accepting permit applications on the appropriate Athletics Ireland Permit Application Form
Key Point from Slide 3 : AAI get payment up front
Slide 4 - Permit Application Portal
Simply the Permit Entry Portal
Slide 5 - Event Setup Process
Now the Problems Start!
Once a permit application is received, an event page will automatically be set up on the Athletics Ireland system ... Actually Eventmaster, by all accounts, and a new account will be set up on the system for the Permit Applicant ..... and a Stripe account as well
Once this is done, Athletics Ireland EXPECTS that the event will be run via the Athletics Ireland/Eventmaster system
Slide 6 - The Event Entry/Registration is Publised on Eventmaster (AAI)
The event is Published on Eventmaster and is ready to accept entries
Slide 7 - Eventmaster System Distinguishes AAI and Non-AAI Members
The crux of the matter - an additional levy is to be paid by ALL non-AAI members, for each and EVERY event they enter. The levy to be charged is to be €3. So an event charging €5, will charge non-members €8, while a €10 nominal entry will cost €13, and a €15 entry will be €18
Most local races in Cork charge €10 to €15, so in this case non-AAI members will pay €13 or €18, while the unregistered non-AAI race down the road will either be more attractive at €10 or €15, or will pocket an extra €3 per head
Slide 8 - AAI Member's Data is Pre-Populated from AAI Membership Data
Screen for Registered AAI member entry
Slide 9 - Non-AAI Member's Data Pre-populated from earlier screen (Slide 7), and €3 Levy Applied
Non-Members Entry
Confirmation of €3 levy per entry for non-AAI members
Slide 10 - Checkout Screen
Slide 11 - Booking Confirmation
Slide 12 - e-Ticket Download
e-Ticket? What is this? Is this your race number/bib? If not, what purpose does it serve?
Slide 13 - 'Ingestion' of Results
Slide 14 - Individual Results Portal
This is the much hyped 'all singing - all dancing' results portal. It's just a list of an individual's results - nothing more.
It's only a demo, but, clearly, great attention to detail has going into this slide <rolling eyes>
....Results from the Dublin Marathon, held on October Bank Holiday weekend, uploaded January 2nd; Great Limerick Run (May Bank Holiday), uploaded February 2nd of the year Before the event! ; Cork City Marathon (June Bank Holiday weekend) uploaded 10 months Before the event. This is only a sample screen for illustration purposes, but, c'mon.....at least make an effort
Slide 15 - Members Benefit
Members Benefits
Listing of results - Maybe useful over time, but highly unlikely that AAI will list results from events prior to system going live. The system would be more attractive if one could view, and search for, other people's results....see who's bluffing!
AAI members don't have to pay the €3 levy.... very generous of AAI..... hardly a benefit, unless not paying it is only a temporary measure
Variety of Benefits
Members will have access to a variety of unspecified benefits, including discounts on products. In other words AAI intends getting involved in merchandising to members.
"Additional profit" from non-AAI members will be ringfenced for HP and Coaching and Development
This is very unclear. What is additional profit, as opposed to Profit? How much is it expected to be? What about existing funding for HP and Coaching and Development? Will that be ring-fenced too? ....or is this levy to replace current HP and Coaching and Development funding, with that funding then diverted towards other things?
Slide 16 - Benefits to County Boards
Benefits to Clubs and County Boards
"Clubs will benefit from members receiving further benefits..." Who thought up this meaningless soundbite?
Easier accession of results through the portal system....Nice to have, but hardly a major benefit
Expectation, by AAI, of increased club membership. Where is the evidence that this will materialise? Club membership attraction is based on many things, including facilities and coaching, along with many other factors It is unlikely that most clubs will see queues forming for membership following the introduction of the €3 levy
"AAI are collecting" (what)? ...and will reach out to a wider audience to further grow membership"
AAI website will direct people towards clubs.... This is supposed to be happening for years anyway. This is a given and a fundamental for any organisation to do this. It should be what AAI is about - it is NOT a benefit of the system
Clubs will benefit from additional funding for HP and Coaching. Unfortunately a significant number of clubs don't have HP athletes at the levels likely to be envisaged, and details of Coaching funding proposed are sadly lacking. It isn't clear if the majority of clubs will benefit in any way at all
Signoff of permits will be streamlined. Again this is a fundamental. It has been overdue for years, as such is not a benefit
The County Board will retain the full Permit Fee. Currently Co. Boards receive 10% of these fees. Cork got between €500 and €700 in pre-Covid years. So this would increas by €4,500 to €6,300. In return AAI would receive approx. €90,000 from Cork alone
Slide 17 - Benefits to Promoters/Organisers
Promoters will be able to benefit from the new website to be able to market their event. What does this mean? Will it be free? Will everyone on AAI's start getting information on AAI's estimated 650 races, along with special offers, and whatever other projects AAI is to get involved in? Potentially, that's a lot of stuff coming into our in-boxes
AAI sees the system replacing the few commercial event advertisers, who depend on race organisers paying them to promote their event
Event identified as an AAI event. This is, again, a fundamental. Cork Athletics has sought for years to have AAI brand and protect its registered events, but AAI has always declined this, or simply ignored its own interest in this area. Now,with another conversion on the road to damascus, AAI appears to finally recognise the issues....but does it really, or is it simply going to tick a box?
Personal accident insurance: AAI insurance details have always been, to say the least, a slipper matter. What are the details? How much cover is proposed? How much will it cost?
Event listing on new website: This has always been the case, however it has been somewhat 'hit and miss', with, often, registered events never listed, and sometimes, unregistered events appearing on AAI lists
Slide 18 - Summary
Summary? This is a mixture of data, aspirations and some loose ends.
Slide 19 - Recreational System Overview
From this slide, it appears that the Merchandising Benefits AAI will be offering to members and non-members will all emanate from Eventmaster. On the data side, this goes to the heart of the matter: Who owns the data? Who Controls the data? And much more.....
