I wasn't the team's business manager and I didn't negotiate the sponsorship contracts, so I can't definitively state what the sponsorship goals were. That said, I believe that there were two primary drivers: 1) favorable tax treatment (for a company owned or directed by cycling enthusiasts) and 2) media exposure and brand enhancement for those sponsors more directly connected to cycling industry (there IS significant coverage of all cycling, including GF's, in Italy - and our team would usually be on TV weekly and in print monthly).
The level of racing...the one-day GF's I did in Italy were harder than any 1-day race I've ridden in the US. Now, I never rode Thrift Drug Classic, Philly, Kmart WV, that crazy 150mile climbing race in Colorado, or ... but I can't think of a single race in the USA that I rode that was more challenging than any of the GF's I raced in Italy. That's NOT to say that I didn't suffer or experience as much pain in the USA as I did in Italy. But with respect to the interplay between the difficulty of the course, the quality of the riders and the speed of the bunch, nothing was as hard in the USA as it was in Italy. So that I don't get flamed, I'm in no way dissing US riders, or saying that the racing is easy in USA. Quite the contrary. It's often times as fast as in UCI stage races, if not faster. But the races are typically shorter here, so the suffering doesn't last as long. But in Italy we were racing 200km events that included on average 4-5 significant (8km+) climbs, in fields made up of exD1 pros, dilettantes, and current pros. Whilst I was there, on my squad was a Vuelta stage winner, a guy who'd ridden four Tours of Italy for Saeco, up-and-coming future pro's from Latin America...it was hard, hard racing at incredible speeds. Heck, Raimondas Rumsas and his henchmen were our #1 rivals...