{"id":21567,"date":"2019-09-19T08:16:44","date_gmt":"2019-09-19T06:16:44","guid":{"rendered":"https:\/\/www.tipandshaft.com\/?p=21567"},"modified":"2019-09-19T08:16:44","modified_gmt":"2019-09-19T06:16:44","slug":"william-ward-it-is-a-good-place-at-the-moment","status":"publish","type":"post","link":"https:\/\/sailorz.com\/en\/clipper-race\/william-ward-it-is-a-good-place-at-the-moment\/","title":{"rendered":"William Ward: “It is a good place at the moment”"},"content":{"rendered":"

The 2019-20 edition of the\u00a0Clipper Race Round the World Race<\/a>\u00a0will be the 12th of the race which sells berths to aspiring circumnavigators and adventurers who can sign up for a single leg of the crewed, multiple stop race<\/a>. This edition is another sell-out, highlighting what a remarkable business success\u00a0Clipper Ventures<\/a> and the race has become. While the Clipper Race allows thousands of ordinary individuals to realise their ambition of sailing around the world,\u00a0three sailors lost their lives<\/strong><\/a>\u00a0during the 2015-16 race and the 2017-18 race. Tip & Shaft spoke with\u00a0William Ward<\/a>\u00a0OBE is co founder and chief executive of the Clipper Race during the first stopover.\u00a0<\/em><\/p>\n

So William it seems Clipper is going from strength to strength right now in terms of turnover and profit?<\/strong>
\nYes,\u00a0we are doing well.<\/strong>\u00a0We struggled in the early years but that shows a massive turn around. Nice and profitable, which it needs to be because we have got to buy, at some point in time, new boats and things like that and\u00a0we are doing a lot in China now<\/strong>\u00a0but yes, it is in a good place at the moment.<\/p>\n

The financial pages in the UK\u00a0recently quoted Clipper as making about \u00a33.5 million profit or something is that right?<\/strong>
\nThat\u2019s correct<\/p>\n

And that\u2019s a turnover of what, roughly?<\/strong>
\n\u00a322 million<\/strong>, something like that. That\u2019s over the course of a race (approx two years) so you could half that as a yearly thing.\u00a0It\u2019s about \u00a324 or \u00a325 million over two years<\/strong>. I tend to talk per race rather than per annuum.<\/p>\n

So what does the race contribute and what does the training contribute, just roughly?<\/strong>
\nThe race is pretty much\u00a0the majority of our income<\/strong>\u00a0because the training element depends what training we are talking about. For example now we have got 800 people through a months\u2019 worth of training so we know our base costs are for that but you would have to start pulling out costs of boats and it\u2019s just not worth the effort really because it is irrelevant where you end up at the end of the year sort of thing.<\/p>\n

The business in China, how is that doing?<\/strong>
\nI think\u00a0that is going to be very big<\/strong>. We set up\u00a0a 100% Chinese company<\/strong>\u00a0which has sold 40% to a Chinese investor, so that cash element there is what\u2019s fuelling the Chinese business. We have got\u00a0two new fleets<\/strong>\u00a0of yachts being built at the moment, a seven meter and a twelve meter and there our aim is to produce one a week of the seven meters and one a fortnight of the forty footers.\u00a0<\/strong>They\u2019re designed by\u00a0Tony Castro<\/a>, I won\u2019t say where they are being built but they\u2019re being built in China in two different yards.\u00a0<\/strong>Our initial order I think is for sixteen of each, but\u00a0we intend to build fifty a year<\/strong>\u00a0of one and twenty five a year of the other.<\/p>\n

Fifty of the smaller one presumably?<\/strong>
\nYes, and the idea there is that they will be\u00a0used in our own academies<\/strong>, because we are setting up academies throughout the whole of China and we will be announcing\u00a0some new races within China<\/strong>. The boats will be for sale through our schools we will create races for the people who have bought our boats. So, it\u2019s\u00a0a very new concept in China<\/strong>, something that nobody has ever done before. We are signing MOU with the Chinese government to do this and there will be\u00a0RYA schools<\/strong>.<\/p>\n

Is the demand already in China or are you creating the demand or what is the balance there?<\/strong>
\nIt\u2019s a bit of both. I mean, we have been going to China as Clipper since 2006 and\u00a0we have seen the demand just absolutely escalate<\/strong>, we didn\u2019t have a Chinese person in that race, I don\u2019t know that there was a Chinese person that had sailed in an Ocean race at that particular time, I don\u2019t think there was.\u00a0We actually trained up the first guys and the first Chinese sailor on the Volvo race<\/strong>\u00a0(Guo Chuan) was trained by us. 110 Chinese people who have sailed in a race and 95 of them have been trained by Clipper. There\u2019s a whole new breed of people in China who have got the cash, they earn good money. Before they didn\u2019t really get sailing, now that sort of 25-year-old, 20-30 year olds are\u00a0a different generation who get it<\/strong>. So, from the old school approach of, if you had money then someone else drove your boat for you. People want to do it themselves. We have got, I think\u00a0forty Chinese people on this current race<\/strong>. So yes there is a demand and I think their frustration is that they have got nowhere to train and the training which has been done so far has been at such a poor level, that is what spurred us to do it.<\/p>\n

On this current race you say you\u2019ll have over 700\u00a0 people compete in total?<\/strong>
\nIt is 716, something like that. There are about 800 that we start off training and then some don\u2019t make it as far as we are concerned.\u00a0One hundred will do the whole race<\/strong>.<\/p>\n

The cost now to do the whole race is about \u00a349,000? And what is the cost of a leg range from and to?<\/strong>
\nYes and the\u00a0<\/strong>cost of the training, whether you are doing an around the world slot or one leg and this includes about 1500 pound of clothing is about five and a half thousand, and then\u00a0the leg prices go from about six and a half to seven and a half<\/strong>. It\u2019s gone up three or four percent per annuum basically we found that certain levels reach barriers, certain legs need chopping and changing a little bit. One becomes more popular than another one for whatever reason with a couple of different stops in it. I think\u00a0we are now selling a couple of hundred places for the 2021 race<\/strong>\u00a0and an around the world slot I think is\u00a0\u00a354000<\/strong>. When you\u2019re doing the pricing it is so difficult because your looking so far in advanced we have\u00a0already sold sponsorship for 2023-2024<\/strong>\u00a0and people know that that is when they are going to come into some money or take a break or retire so they are already planning their trip for the \u201823-\u201824 race. It\u2019s hard to get your mind around how far in advanced we have to think.<\/p>\n

This race is sold out?<\/strong>
\nIt pretty much is all the time, you get the odd space where right at the very end. Pretty much some of the legs have got\u00a0long waiting lists<\/strong>\u00a0for if people drop out. Two or three legs are never fully sold out. We set a number that we would have been absolutely over the moon with and every time we have beaten that number.<\/p>\n

What is the range of costs to the cities as a host stop?<\/strong>
\nWell from a hosting perspective, depending on where we want to be it can be anywhere\u00a0from \u00a3250,000 to \u00a32 million<\/strong>. So you could have a small stop that we ideally want to be at or you could be a stop where they have a boat and want to promote it around the world and that can be a two million price tag.<\/p>\n

What is the economic benefit of what you bring to a city in terms of a stopover?<\/strong>
\nI have never said we would bring them something like hotel room nights, it\u2019s not a football match and it doesn\u2019t work like that. One deal for instance between Holland Humber had a boat and between Findus food, the Cape Breton fishing industry for cod and the Chinese packaging deal came to $100 million over a three year period. They had never talked to each other before we got involved. We put the people together with the mayor of a Chinese city, and they were struggling to get through whatever red tape it was with that. That then opened the doors and the deal was done and it was done very quickly.<\/p>\n

So basically, you do an overall evaluation of what it may be worth, in terms of business, in the big picture and that\u2019s how you put your price on the stopover?<\/strong>
\nYes, to a degree and what is big numbers to one city is nothing to another one so you couldn\u2019t get a Chinese city like Qingdao which is growing huge economic opportunities, I mean the manufacturing there, the shipping, the whole city. So,\u00a0every pound they spend would be completely different to say Falmouth or Southampton<\/strong>, there\u2019s no comparison.<\/p>\n

And is it the same for sponsorship, what\u2019s the range for the sponsorship, presumably there\u2019s a sliding scale there?<\/strong>
\nYes, it\u2019s similar thing there. There are some sort of starter packs depending on what they want to do, where it could be as little as \u00a325,000\u00a0 where they are people that we use within the sailing industry and just want to be associated with their product and things like that. Again, up to a quarter of a million plus product.<\/p>\n

For example, what would Sanya have paid out in last time?<\/em><\/strong>
\nSanya is a city so that is a\u00a0two million ta<\/strong>g.<\/p>\n

And is that relatively easy to sell, in terms of a package?<\/strong>
\nI don\u2019t think anything is easy to sell like that no. The bigger the number the more you start competing with other brands and sports and things like that. So, for a city they will only have maybe one major yacht race, so you\u2019re competing with whether they want the basketball or the football or the rugby or a marathon. They have only got so many key months and so much money but more importantly they only have so much event staff to put things on. So,\u00a0the bigger cities can have ten major events whereas we could be their one major event<\/strong>.<\/p>\n

Do you have any measure of how many people stay on, at a high level in sailing?<\/strong>
\nWe have never measured it as such. We do know that\u00a0we have probably created more people than any other brand in sailing in Britain<\/strong>, I absolutely believe that. A lot of the people who come to us have never sailed before and then they carry on sailing and they carry on either with their own boats or with other people but\u00a0take for instance Sir Keith Mills<\/strong>.\u00a0He was on the \u201998 race he then supported Alex Thomson, he has probably put \u00a3200 million into sailing?<\/strong>\u00a0Of his own money\u2026\u2026that came from being on a boat when he was forty in the \u201998 race. He wasn\u2019t a sailor, I think he had been sailing but he wasn\u2019t what you would call a sailor. At the time he owned airmiles, or nectar and he sponsored Alex Thomson and they have had a great relationship ever since. One of our Australians, well he lives part time in Australia, he\u2019s a very wealthy guy and he was a crew member he\u2019s got a big campaign, open ship scheme, races all over, and his team that he put together are all ex-clipper. I can\u2019t remember his name, there are a few like that who are dotted here and there but there is only a few at the very, very, top.\u00a0Most of them are French<\/strong>.\u00a0We have always struggled with France<\/strong>, you would think that such a great sailing nation, that the French would have a team boat and there would be a queue of French people.<\/p>\n

You were interested in the Volvo race as well weren\u2019t you as a business before it was taken over by Atlant?<\/em><\/strong>
\nYes, I was,\u00a0I wouldn\u2019t have paid a lot of money for it<\/strong>\u00a0and it needed a sponsorship from them but not as title, but it would have needed some support to ease through it. Otherwise we could never have afforded to fund the level that they do. I thought that the team that we have got here were pretty much halfway to creating a business. If is could have been put towards our route obviously there was a lot of tie-in with it which was a lot of overlap. The model needed changing, they\u2019ve got whatever model they have now, and I don\u2019t know too much about it now. Their boats are superb, what they do is incredible, the speed, everything else about it. I just hope that with all the other races going on now, that they haven\u2019t taken the shine off it, because otherwise it is going to be a struggle to attract the level of sponsorship that you need. It has to have that.\u00a0The technology and the cost of those boats is just astronomical<\/strong>, even with their savings there will still be an awful lot of money towards one boat.\u00a0<\/em><\/strong><\/p>\n

When are you due to replace your fleet for the Clipper Race?<\/strong>
\nWe will do\u00a0one more race certainly with these ones<\/strong>, they are in great shape.<\/p>\n

How many races have they done?<\/strong>
\nThis will be their fourth, if you look at the 68s we have got they could all still go around. They\u2019re all still working for us. We sailed two to Australia and we are going to put some in China, they\u2019re all still going strong. All the original fleet of sixty footers from the \u201996 race could all go on and on. We are just early days of deciding when we will do that.<\/p>\n

You have had a certain amount of criticism for\u00a0the loss of life in the recent races<\/a><\/strong>, how has that affected you and what have you done to change the procedures for this race?<\/strong>
\nWell, obviously it\u2019s incredibly sad, and we are in that environment but the last one was so, so, incredibly unlucky the way that parted, they struggled to re-enact that in the lab I mean it had tonnes of pressure on it, but any time anything like that happens it is soul searching for us and you do whatever is recommended but to be honest we are well above what is the recommended standard is.\u00a0Some of the criticism was very unjust<\/strong>, there was lots of things happening in the press to stop that because we feel that we have to defend ourselves and not we would rather not drag things along but a lot of these reports criticise the length of the tether but miss that there were two tethers and the length of the tether was agreed because we take out a lot of the professional bodies on our training. There are not many people that have boats of our size that they can test on. So, we end up doing lots beyond what anyone ever sees and we have always worked with the authorities. You can only do what is recommended before an event and then after put whatever\u2019s right in each time but\u00a0awful things happen and it weighs very heavily on my mind all the time<\/strong>. I\u2019m sure in years to come unfortunately you know, it is a mega ocean out there and\u00a0the waves are still as nasty as they were 200 years ago<\/strong>. Safety procedures have just gone, compared to what it was 20 years ago, my son was the first to have done the Clipper race and that was \u201996 and when I think of what the authorities told us to do then in comparison to now\u00a0it has changed dramatically<\/strong>. There will always be an accident, you know, people die on a football pitch, you will never stop people wanting to do something that is exciting.<\/p>\n

The element of danger is important to the whole thing isn\u2019t it?<\/strong>
\nYes, danger, but top athletes who take risks with sky-diving and what you would consider a danger sport, are the ones who are most thorough and check their kits to make sure it is right but there will still be that one in a million chance of something happening. It could just be that down below you bang your head.\u00a0Should we put people in cotton wool?<\/strong>\u00a0I have broken bones severely skiing, I rolled a race car recently but that\u2019s an important element of life isn\u2019t it?\u00a0People want to challenge themselves<\/strong>.<\/p>\n

What other directions or trends are you looking towards with the company?<\/strong>
\nWho knows how many boats we will have in the next fleet, so\u00a0there is a lot of growth potential there<\/strong>. The\u00a0training school at Hamble<\/a>\u00a0has proven to be really successful, that was a great purchase, great people, and because of all the Clipper people that has created a lot more business because previously a lot of our crews were getting their certificates before and afterwards at different schools who were issuing normal sort of Yachtmaster certificates and things like that so that has created business for that school. Really for me, I am backwards and forwards to\u00a0China, which could be a business very quickly worth 50 million quid<\/strong>. So, that is the goal to create that. Where\u00a0it took us probably twenty years to get Clipper up to that sort of value, I think we could do that in four years with China<\/strong>.<\/p>\n

Then you sell up and head for the Bahamas?<\/strong>
\nWell I could have headed to the Bahamas a long time ago but I do get such a buzz out of what we do,\u00a0I love it<\/strong>. It\u2019s gone well beyond doing it for the wages and the dividends. It\u2019s a way of life, I\u2019m sixty-two probably don\u2019t have to work,\u00a0Robin is 80 doesn\u2019t have to work<\/strong>\u00a0and here we are both at a stopover enjoying seeing what it does for people<\/strong>. I get a buzz out of the crew and the business side as Robin does,\u00a0he loves to see the amount of people that are sailing<\/strong>, it\u2019s in his blood. I don\u2019t know what I would do to replace it, we have had chances to sell out a couple of times. At some point, don\u2019t get me wrong we will sell some of it, I know Robin thinks he\u2019s forty but he is eighty and I would be nice to look after our families and everything else, but it would be a very sad day. I think it will be one of those things where you bank the check then think my god what am I going to do now.<\/p>\n

Who owns the company?\u00a0<\/em><\/strong>
\nIt is pretty much owned,\u00a0I am a majority holder I own 60%, Robin owns 30%<\/strong>\u00a0and three friends of mine own about 9% between them.<\/p>\n

Photo: Clipper Round The World Race<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The 2019-20 edition of the\u00a0Clipper Race Round the World Race\u00a0will be the 12th of the race which sells berths to aspiring circumnavigators and adventurers who can sign up for a single leg of the crewed, multiple stop race. This edition is another sell-out, highlighting what a remarkable business success\u00a0Clipper Ventures and the race has become. While the Clipper Race allows thousands of ordinary individuals to realise their ambition of sailing around the world,\u00a0three sailors lost their lives\u00a0during the 2015-16 race and the 2017-18 race. Tip & Shaft spoke with\u00a0William Ward\u00a0OBE is co founder and chief executive of the Clipper Race during the first stopover.\u00a0<\/p>\n","protected":false},"author":4,"featured_media":21568,"comment_status":"open","ping_status":"open","sticky":false,"template":"template-design.php","format":"standard","meta":{"footnotes":""},"categories":[284],"tags":[],"class_list":["post-21567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-clipper-race"],"yoast_head":"\nWilliam Ward: "It is a good place at the moment" - Sailorz<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sailorz.com\/en\/clipper-race\/william-ward-it-is-a-good-place-at-the-moment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"William Ward: "It is a good place at the moment" - Sailorz\" \/>\n<meta property=\"og:description\" content=\"The 2019-20 edition of the\u00a0Clipper Race Round the World Race\u00a0will be the 12th of the race which sells berths to aspiring circumnavigators and adventurers who can sign up for a single leg of the crewed, multiple stop race. This edition is another sell-out, highlighting what a remarkable business success\u00a0Clipper Ventures and the race has become. While the Clipper Race allows thousands of ordinary individuals to realise their ambition of sailing around the world,\u00a0three sailors lost their lives\u00a0during the 2015-16 race and the 2017-18 race. 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