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I'd certainly rather ride a more traditional off-road race on a good course though I suspect an "urban" race would be easier to promote and pull in a crowd. Supercross and Muddy Hell have always done alright in that sense though: bring beer and they will come. You'd need some elevation, stairs, cobbles, changes of surface, etc to make it interesting, rather than just a car park, tape and some planks. I can't think of anywhere in London off the top of my head. Overall, I reckon much harder to organise and find a venue than a normal 'cross race.
There's a real lack of venues actually in central London, Herne Hill being the only regular that's used. It's a shame Alexandra Palace doesn't seem to have worked out.
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I think it depends on the course for me. As @Jon. says, if the course was varied in terms of surfaces, then I'd definitely be interested in racing.
The date would be key too, there's some big gaps in the London League calendar this year, so filling one of those would all but guarantee me riding.
Hint, hint, December.
Hypothetical question...
If there was going to be an urban cross event in London this year would people be up for entering? Interested to hear the thoughts of those of you who race CX regularly. Would it attract a different sort of crowd? Would more single speed racers be tempted?