Pennies from heaven!
And you trust me don’t you? You trust my various little birds trapped behind the World Surf League’s Santa Monica Wall of Positive Noise who peep out rumors so hot that they take months to substantiate? Oh you should because they are always right, even though they take months to substantiate, and when they are not right it is due some massive billionaire posturing behind the scenes, derailing certain true scenarios and writing their will upon bad ideas.
See Kelly Slater’s Surf Ranch in the otherwise drought-stricken California central valley. I reported, two months ago, that Santa Monica’s powers that be were set to shutter the KSWaveCo. Solana Beach offices and lay off basically everyone. It just came true. I also reported that the Freshwater Pro would be abandoned as the competition was hated by professional surfers, did horrible viewership numbers and was otherwise generally unloved. It didn’t come true but only because the Santa Monica powers that be are running a just announced reality television show there and also it is the only part of the entire World Surf League that makes money.
How much does it make?
As just revealed by a little bird… zero.
And let me quote…
Bottom line is that KSWaveCo has total operating costs per month between $800k – $1m and are renting the place on average of 15 – 20 days per month with an asking price of $50k per day so are grossing $750k -$1m per month. In other words, much sound and fury and make-believe surf but capitalism-wise much ado about a basically break even proposition. On top of that, research and development plus getting the place up and running was an easy $10m+ so they’re servicing $10m in debt and running at roughly break even. Not how the Rockefellers, or even the Ziffs made their fortunes.
Are you happy that the Freshwater Pro is back for another year as the lone success story of co-Waterperson of the Year Dirk Ziff’s reign, equalling a break even proposition, at best?
If Dirk Ziff was a character on HBO’s Succession who would he be?
More as the story develops.