Spartan Race Inc., the extreme obstacle-race organization founded and led by entrepreneur and TV personality Joe De Sena, is delaying prize-money payments to contestants during an ongoing cash crunch, WSJ Pro Bankruptcy reported. De Sena said in a recent message to contestants that he needs people owed prize money to “hang in there with me for another two months while we continue getting everything financial back on track.” Spartan is aiming to get the prize money payments out by the end of September. A total of at least 50 athletes are collectively owed between $200,000 and $300,000 for having placed top three in their races, De Sena said in an interview. Spartan, known for its grueling endurance races in which contestants push through miles of mud and crawl underneath barbed wire, has also been laying off senior employees this year and stopped paying some vendors as its cash dwindled. The Boston-based company has been struggling to recover from the lingering COVID-19 pandemic, with ticket sales muted and inflation and higher fuel costs hitting the bottom line. In addition to his work running Spartan, De Sena hosts a CNBC show called “No Retreat: Business Bootcamp,” in which he advises struggling businesses on how to turn around their operations and make a comeback. He said that Spartan has laid off roughly 40 people out of its 650-person workforce, including a number of senior staff members. De Sena founded the company in 2001, holding its first event in the British Virgin Islands. Spartan operates primarily in the U.S., but has conducted obstacle-course races in 45 countries, including Germany, France, Thailand and South Korea. De Sena has said he owns roughly 75% of the company while media conglomerate Hearst Corp. owns much of the remainder.
