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Old 06-25-12, 20:45
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Armchair cyclist Armchair cyclist is offline
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Default Garmin Sharp

2 threads, and about 300 posts for SaxoTinkoff, and nary a mention of the other new name sponsor today. Garmin join with Sharp (two customer facing electronics companies, albeit in different fields: a business partnership in the brewing?) and relegate Barracuda to third-name status.

Sharp are huge, at least in the UK; one of the biggest names in domestic electronics, far greater recognisability here than any other sponsor name with the exception of Sky.

And have been happy to play big sponsorship games as well: 17 years as shirt sponsors of Manchester United. Even a fraction of that budget could fund a superteam to make any other pretender to that epithet wince.

I guess we learn more on Thursday...
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Old 06-25-12, 20:49
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Originally Posted by Armchair cyclist View Post
2 threads, and about 300 posts for SaxoTinkoff, and nary a mention of the other new name sponsor today. Garmin join with Sharp (two customer facing electronics companies, albeit in different fields: a business partnership in the brewing?) and relegate Barracuda to third-name status.

Sharp are huge, at least in the UK; one of the biggest names in domestic electronics, far greater recognisability here than any other sponsor name with the exception of Sky.

And have been happy to play big sponsorship games as well: 17 years as shirt sponsors of Manchester United. Even a fraction of that budget could fund a superteam to make any other pretender to that epithet wince.

I guess we learn more on Thursday...
And Argos, though not necessarily the same Argos
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Old 06-25-12, 21:15
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This sponsorship deal really made me happy when it was announced. Tinkov is a rich guy who likes cycling, Sharp is a well known (in Europe at least) multinational company. Since cycling is becoming more and more widespread, therefor I think we will see more and more multinational reatail companies sponsoring cycling. That's what I hope at least.
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Old 06-25-12, 21:20
Zinoviev Letter Zinoviev Letter is offline
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This sponsorship deal really made me happy when it was announced. Tinkov is a rich guy who likes cycling, Sharp is a well known (in Europe at least) multinational company. Since cycling is becoming more and more widespread, therefor I think we will see more and more multinational reatail companies sponsoring cycling. That's what I hope at least.
Yes, sponsors of the Sharp variety are probably more desirable than individual rich dudes, as they indicate genuine commercial interest in advertising through the sport. It's sort of odd that in a period when there really aren't all that many commercial sponsors from outside the bike industry that Garmin has no less than three of them.
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Old 06-25-12, 21:33
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Vaughters interview at VN:

VN: Presumably the deal is good for budget too, making things a little easier going forward?

JV: Well, it doesnít change our budget because when BigMat defaulted on that commitment, we were stuck in a situation where basically team owner Doug Ellis had to recapitalize. Over the next few years it will hopefully gets us into the position where we donít have to go into debt to run the team any more. It doesnít really change our overall budget, but it just puts us in a better position financially.

VN: How long is this deal for, and also whatís the situation with Garmin?

JV: Sharp is for the rest of this year and for 2013 and 2014. As for Garmin, they are in the game long-term.
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Old 06-25-12, 21:36
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Always glad to see new sponsors in the sport. Especially after some hard years where we have seen team struggle with the finances, mergers and even teams closing

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JV: Sharp is for the rest of this year and for 2013 and 2014. As for Garmin, they are in the game long-term. [/SIZE]
The sport need more long term sponsors as Garmin and Rabobank.
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Old 06-25-12, 21:40
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It's good for both sides but I do find it a bit disappointing that Sharp have gone with Garmin. I was hoping they'd increase their sponsorship of the Rapha team. I wonder what will happen to them. Can you sponsor more then one team?
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Old 06-25-12, 21:40
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I am surprised that Sharp came aboard. I still perceive cycling as a bit of a niche sport, but maybe cycling sponsorships have a better ROI than I thought.

Also, to me Vaughters just seems like a kind of manager that would connect with sponsors. I certainly get a corporate vibe from him. And finally, maybe the clean reputation makes the sponsorship more attractive as there is a lower risk of being associated with a scandal.
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Old 06-25-12, 21:43
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It's good for both sides but I do find it a bit disappointing that Sharp have gone with Garmin. I was hoping they'd increase their sponsorship of the Rapha team. I wonder what will happen to them. Can you sponsor more then one team?
There's FDJ-BigMat and BigMat-Auber 93 in France.
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Old 06-25-12, 21:48
Zinoviev Letter Zinoviev Letter is offline
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Quote:
Originally Posted by Machu Picchu View Post
Vaughters interview at VN:

VN: Presumably the deal is good for budget too, making things a little easier going forward?

JV: Well, it doesnít change our budget because when BigMat defaulted on that commitment, we were stuck in a situation where basically team owner Doug Ellis had to recapitalize. Over the next few years it will hopefully gets us into the position where we donít have to go into debt to run the team any more. It doesnít really change our overall budget, but it just puts us in a better position financially.

VN: How long is this deal for, and also whatís the situation with Garmin?

JV: Sharp is for the rest of this year and for 2013 and 2014. As for Garmin, they are in the game long-term.
That whole interview is pretty interesting, giving some details on their Tour strategy and also outlining minimum wage rises for riders.

The part about the budget that you highlighted is key though. Slipstream seem able to get these proper commercial sponsorship deals from multinational companies. But even with two big technology companies as name sponsors (and Barracuda still around too), we still are going to be talking about one of the smallest budgets in the World Tour.

So good news that a cycling team can attract real commercial sponsorship from major international companies. But bad news that sponsorship deals even from big brands at the going commercial rate are still going to produce a team with a budget way, way lower than the budgets of teams with national or rich hobbyist backing. Garmin (like Saxo Bank) seem to generally overperform for a team on their budget, but it doesn't change the fact that the commercial structure of the sport is warped by sponsors who don't really care about the market value of their investment.
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