Jumbo - QuickStep merger

[fmk_RoI]

Whether it's fair or not, Patrick is the only person of power in this thing that publicly cast some doubt on this thing before it fell apart

Odd that he only moved into hero mode after UCI pointed out the rules on mergers and left only one avenue for getting value out of the SOQ WT licence...

 

[laarsland]

If we remove ourselves from the sphere of cycling diehards:

This clowncar of a merger which either leaked during probing talks or was leaked by the teams when they were sure it would go through

And

Amazon being leaked as incoming sponsor, then that deal falling through as aell

Really reeks of a business climate within pro cycling which will continue to struggle attracting new partners. No wonder we get the Manuela and NextHash-idiots

 

[Berniece]

This clowncar of a merger which either leaked during probing talks or was leaked by the teams when they were sure it would go through

And

Amazon being leaked as incoming sponsor, then that deal falling through as aell

It’s probably PON that leaked it twice

 

[pman]

It isn't this hard for teams who didn't just win every Grand Tour in a season to get a sponsor. Maybe Plugge comes out of this with a big name sponsor and a huge budget but right now, we're left wondering why nobody wants to sponsor the most successful team in the sport. It's odd.

 

[FroomeWagon]

So where does Ineos stand? Are they still after Remco? Don't they still only have 15? riders for next year? Wasn't the original rumor that Ineos was going to buy SQS. then Jumbo mucked it up.

 

[pman]

So where does Ineos stand? Are they still after Remco? Don't they still only have 15? riders for next year? Wasn't the original rumor that Ineos was going to buy SQS. then Jumbo mucked it up.

That's Patrick's next move, isn't it? Negotiate a buyout with Ineos and get a 1 time infusion of cash or hold onto Remco and see if it helps you long term. Tough call.

 

[will-10]

https://www.cyclingnews.com/news/so...er-cancelled-amid-take-over-anger-and-dismay/
"Clarity may only come after October 19, when 2024 team registration is confirmed by the UCI."

Me? I'm waiting for the 19th of October when the Fat Lady finally gets to sing (I don't suppose the UCI has ever beeen compared to a fat lady before but ... what the heck!).

about as (ir)relevant as Aug 1st for transfer season

 

[will-10]

It isn't this hard for teams who didn't just win every Grand Tour in a season to get a sponsor. Maybe Plugge comes out of this with a big name sponsor and a huge budget but right now, we're left wondering why nobody wants to sponsor the most successful team in the sport. It's odd.

This has been the case on countless occasions for "the biggest team(s)" in cycling. The ROI is simply not that great for long periods for a lot of these sponsors.

 

[pman]

This has been the case on countless occasions for "the biggest team(s)" in cycling. The ROI is simply not that great for long periods for a lot of these sponsors.

I suppose but why wouldn't a billionaire just do it for ego? Doesn't make sense.

 

[will-10]

I suppose but why wouldn't a billionaire just do it for ego? Doesn't make sense.

They do, but even they get bored. Andy Reis's Big Money C*nts couldn't find a big money sponsor either.

 

[Ricco']

It isn't this hard for teams who didn't just win every Grand Tour in a season to get a sponsor. Maybe Plugge comes out of this with a big name sponsor and a huge budget but right now, we're left wondering why nobody wants to sponsor the most successful team in the sport. It's odd.

Maybe this tells us that teams like Jumbo aren't sustainable if the financial backing comes from something that isn't a sugar daddy with deep pockets?

They have a killer team for both GTs, Stage Races and Classics, women's team with maybe the best female cyclist ever, one of the greatest development programs around, etc., etc. Maybe they should balance what should be the priority and not try to be the best of all.

Regarding sponsors, I think that once TdF participation is guaranteed, they have all the exposure they want and sometimes sponsoring a team like Jumbo brings more costs than benefits. Say a sponsor like Citroën, who is already well known around the world. Would the marginal benefit created by Ag2r winning everything be greater than the marginal cost of increasing their sponsorship to those levels?

And Amazon, who is already known around the world as a ruthless corporation eating small businesses margins and putting them out of business. Would they want to associate with a cycling team that it's their image, seen as a ruthless team who wins everything everywhere or would be better for them to benefit from a popular team with a careless image, like Trek and their social media antics or EF and their "cool kids" persona?

 

[pman]

Maybe this tells us that teams like Jumbo aren't sustainable if the financial backing comes from something that isn't a sugar daddy with deep pockets?

They have a killer team for both GTs, Stage Races and Classics, women's team with maybe the best female cyclist ever, one of the greatest development programs around, etc., etc. Maybe they should balance what should be the priority and not try to be the best of all.

Regarding sponsors, I think that once TdF participation is guaranteed, they have all the exposure they want and sometimes sponsoring a team like Jumbo brings more costs than benefits. Say a sponsor like Citroën, who is already well known around the world. Would the marginal benefit created by Ag2r winning everything be greater than the marginal cost of increasing their sponsorship to those levels?

And Amazon, who is already known around the world as a ruthless corporation eating small businesses margins and putting them out of business. Would they want to associate with a cycling team that it's their image, seen as a ruthless team who wins everything everywhere or would be better for them to benefit from a popular team with a careless image, like Trek and their social media antics or EF and their "cool kids" persona?

Great post

 

[fmk_RoI]

Anyone reducing this just to basic economics of TJV looking for sponsors is missing the point. Bakala was offering more than just Soudal and Quick-Step. TJV would have been acquiring more clout.

Yes, cycling does have a problem, particularly at the top. As Daam van Reeth has put it, "cycling at the top level has become too global (and thus too expensive) for smaller local sponsors but, at the same time, is not global enough for big multinational companies." The top teams have basically grown faster than the sport.

For sugardaddy teams - Ineos, UAE, Israel Premier Tech - this isn't much of an issue. For the teams on the lower rungs of the sport it's not much of an issue. But for some of the big teams it is an issue. Jumbo and Visma are local sponsors, while Jumbo-Vima has become an international team.

We don't know what potential sponsors TJV's hunt unearthed. Neom was a fantasy, as it appears was Amazon. Was the photo with Apple boss Tim Cook just a photo with Apple boss Tim Cook or was Apple scoping the team out? Would Plugge want Apple as a sponsor given Apple would likely be in and out inside of three to five years (a marketing cycling for a major brand) and he'd be back to square one in 2027?

Soudal and Quick-Step, on the other hand, are diehard sponsors, not sugardaddies but fans with deep pockets and a lot of patience. They would likely be in it for longer than a three- to five-years marketing cycle. They represent stability, of a kind.

Whatever is going on, there's a lot more to it than the tired old mantra of cycling's broken economic model. A lot more.

 

[Izzyeviel]

https://www.footballbenchmark.com/library/sponsorship_overview_2023_24

If those guys have small deals...what chance do cycling teams have? Its only going to get worse. There needs to be a complete rethink on how revenue is generated & distributed by the likes of ASO & UCI & how to promote the sport.

 

[theyoungest]

Anyone reducing this just to basic economics of TJV looking for sponsors is missing the point. Bakala was offering more than just Soudal and Quick-Step. TJV would have been acquiring more clout.

Yes, cycling does have a problem, particularly at the top. As Daam van Reeth has put it, "cycling at the top level has become too global (and thus too expensive) for smaller local sponsors but, at the same time, is not global enough for big multinational companies." The top teams have basically grown faster than the sport.

For sugardaddy teams - Ineos, UAE, Israel Premier Tech - this isn't much of an issue. For the teams on the lower rungs of the sport it's not much of an issue. But for some of the big teams it is an issue. Jumbo and Visma are local sponsors, while Jumbo-Vima has become an international team.

We don't know what potential sponsors TJV's hunt unearthed. Neom was a fantasy, as it appears was Amazon. Was the photo with Apple boss Tim Cook just a photo with Apple boss Tim Cook or was Apple scoping the team out? Would Plugge want Apple as a sponsor given Apple would likely be in and out inside of three to five years (a marketing cycling for a major brand) and he'd be back to square one in 2027?

Soudal and Quick-Step, on the other hand, are diehard sponsors, not sugardaddies but fans with deep pockets and a lot of patience. They would likely be in it for longer than a three- to five-years marketing cycle. They represent stability, of a kind.

Whatever is going on, there's a lot more to it than the tired old mantra of cycling's broken economic model. A lot more.

I think in a way Jumbo have become the victim of their own success. Daam van Reeth is right, they're too big for the Dutch market yet too small for a global player.

But if it turns out that out of all of this mess Pon/Cervélo emerges as their new title sponsor, that would probably be more sustainable in the long term than getting Soudal, Specialized, Bakala, whatever on board. Pon is a Dutch company, they have very deep pockets, and they will always want to be active in cycling sponsorship since they sell bikes. To be honest I had expected them to step up a lot sooner.

 

[saunaking]

How is Jumbo too small for anything?
Hello?? They are the most successful team in the peloton.
They had under contract 3 of the best 10 cyclists in the world?

Oh the super teams? Ineos? How is that working out for them?
UAE? They have 1 rider that makes them a super team, otherwise they are contending for all big races but winning none

 

[dennisdy]

I am a huge Jumbo fan, but something isn't right. How could a team that just had the greatest season of all time be unable to merge, and unable to find a new sponsor? There's something pushing other companies away from them.

 

[SHAD0W93]

I am a huge Jumbo fan, but something isn't right. How could a team that just had the greatest season of all time be unable to merge, and unable to find a new sponsor? There's something pushing other companies away from them.

Or no team/ Jumbo doesn’t want to pay a higher sponsorship cost when they had been getting so much for less. Like how HTC didn’t want to pay more when they were winning so much. Why would they go from paying say $25-50 to $100-150 a month for the same results?

 

[Bolder]

https://www.footballbenchmark.com/library/sponsorship_overview_2023_24

If those guys have small deals...what chance do cycling teams have? Its only going to get worse. There needs to be a complete rethink on how revenue is generated & distributed by the likes of ASO & UCI & how to promote the sport.

That's just to slap a logo on a jersey. Football teams have many other sources revenue that cycling doesn't, like ticket sales, huge apparel licensing deals and broadcast rights.

 

[Berniece]

That's just to slap a logo on a jersey. Football teams have many other sources revenue that cycling doesn't, like ticket sales, huge apparel licensing deals and broadcast rights.

Not to mention they can actually sell their players.

 

[noob]

Maybe this tells us that teams like Jumbo aren't sustainable if the financial backing comes from something that isn't a sugar daddy with deep pockets?

They have a killer team for both GTs, Stage Races and Classics, women's team with maybe the best female cyclist ever, one of the greatest development programs around, etc., etc. Maybe they should balance what should be the priority and not try to be the best of all.

Regarding sponsors, I think that once TdF participation is guaranteed, they have all the exposure they want and sometimes sponsoring a team like Jumbo brings more costs than benefits. Say a sponsor like Citroën, who is already well known around the world. Would the marginal benefit created by Ag2r winning everything be greater than the marginal cost of increasing their sponsorship to those levels?

And Amazon, who is already known around the world as a ruthless corporation eating small businesses margins and putting them out of business. Would they want to associate with a cycling team that it's their image, seen as a ruthless team who wins everything everywhere or would be better for them to benefit from a popular team with a careless image, like Trek and their social media antics or EF and their "cool kids" persona?

Also 🐘 in the room; clinic. Jonas unbelievable ITT, Hessman possible awaiting trial. Winning every GT, triple La Vuelta. I think the risk of getting caught again weighs in too. Rabo history, Lance vibes...

 

[theyoungest]

Or no team/ Jumbo doesn’t want to pay a higher sponsorship cost when they had been getting so much for less. Like how HTC didn’t want to pay more when they were winning so much. Why would they go from paying say $25-50 to $100-150 a month for the same results?

Jumbo are pulling out because they don't see the added value of their sponsorship anymore. And I think they could be right. They're not selling any more broccoli because Vingegaard won the Tour. Now if Vingegaard were a Dutchman, that might help. It's no coincidence that the only Jumbo commercial I've ever seen that involved cycling was with Tom Dumoulin.

Also 🐘 in the room; clinic. Jonas unbelievable ITT, Hessman possible awaiting trial. Winning every GT, triple La Vuelta. I think the risk of getting caught again weighs in too. Rabo history, Lance vibes...

That always happens when you're successful in cycling. Riding fast means clinic insinuations. So that would mean that no successful team will ever be able to find a sponsor.

 

[SHAD0W93]

Jumbo are pulling out because they don't see the added value of their sponsorship anymore. And I think they could be right. They're not selling any more broccoli because Vingegaard won the Tour. Now if Vingegaard were a Dutchman, that might help. It's no coincidence that the only Jumbo commercial I've ever seen that involved cycling was with Tom Dumoulin.

Right, so from what I said. They have gotten amazing results and reports are the team wants more money. Why would Jumbo pay more if they got so much for less. Paying more isn’t going to increase their viewership when everyone that follows or seen the sport has seen them at the top of quite awhile. Factor in this year and they’ve had a lot of exposure.

Also 🐘 in the room; clinic. Jonas unbelievable ITT, Hessman possible awaiting trial. Winning every GT, triple La Vuelta. I think the risk of getting caught again weighs in too. Rabo history, Lance vibes...

Maybe the new sponsor will keep Jumbo’s three strikes in a year policy.

 

[staubsauger]

Am I too late for the Dutch Postal Service & United Colors of Benetton cycling sponsorship jokes!?

 

[Izzyeviel]

That's just to slap a logo on a jersey. Football teams have many other sources revenue that cycling doesn't, like ticket sales, huge apparel licensing deals and broadcast rights.

precisely my point...