Pegasus Sports > 'Gillett-Fly-V' > Non existent

[auscyclefan94]

I think Pegasus should be right, hopefully more backing will be available for them so for the few riders who took a paycut will be on there original salaries.

 

[NickBVK]

http://www.sbs.com.au/cyclingcentral/news/19111/Pegasus-gets-lifeline-from-“within-the-family”#add

CEO Chris White has told Cycling Central that the funds to secure the bank guarantee required by the UCI has been derived from “one of our existing sponsors upping their commitment”.

 

[Anonymous]

One thing that confuses me a bit is that the some riders taking a bit of a cut in wages can make that much of a financial difference. Yes it effects the UCI indemnity payment, but surely we can only be talking about thousands of dollars, can they really have taken a cut in the hundreds of thousands of dollars?

and if it is that small an amount couldnt savings have been made elsewhere, or are we to assume that not only have riders taken a pay cut, but savings have been made across the board, support staff, equipment etc.

Maybe scotts extra funding is in parts and equipment that pegasus were otherwise going to have to buy.

But riders taking a cut in wages really must be small money in the grand scheme of things.

 

[kurtinsc]

One thing that confuses me a bit is that the some riders taking a bit of a cut in wages can make that much of a financial difference. Yes it effects the UCI indemnity payment, but surely we can only be talking about thousands of dollars, can they really have taken a cut in the hundreds of thousands of dollars?

and if it is that small an amount couldnt savings have been made elsewhere, or are we to assume that not only have riders taken a pay cut, but savings have been made across the board, support staff, equipment etc.

Maybe scotts extra funding is in parts and equipment that pegasus were otherwise going to have to buy.

But riders taking a cut in wages really must be small money in the grand scheme of things.

How big is there salary budget?

If it were 10 million for all riders and staff, and everyone took a 20% cut... that's 2 million. That's not chump change.

 

[auscyclefan94]

How big is there salary budget?

If it were 10 million for all riders and staff, and everyone took a 20% cut... that's 2 million. That's not chump change.

ONly a handful of riders took them...

 

[unsheath]

The only embarrassing thing is the lack of sponsors coming out of Aus. Considering the country has faired well out of the GFC its a damn indictment White cant find a local backer especially at a fraction of a price of some other sporting codes. Pathetic.

 

[Mellow Velo]

How big is there salary budget?

If it were 10 million for all riders and staff, and everyone took a 20% cut... that's 2 million. That's not chump change.

Closer to your chump change than 10 million, I would think.

 

[Libertine Seguros]

How big is there salary budget?

If it were 10 million for all riders and staff, and everyone took a 20% cut... that's 2 million. That's not chump change.

That's assuming an average wage of $400 000 (I assume we're working in dollars here, could be Euros, which would make it even more ridiculous). Over Pegasus' roster, I consider that to be beyond absurd. If they were paying out that kind of overinflated salary, they'd have got every big name in the sport.

 

[Anonymous]

That's assuming an average wage of $400 000 (I assume we're working in dollars here, could be Euros, which would make it even more ridiculous). Over Pegasus' roster, I consider that to be beyond absurd. If they were paying out that kind of overinflated salary, they'd have got every big name in the sport.

which is my confusion the amount they can save in salaries is just so small. lets assume a budget of $3m - and ten riders have taken cuts, we are maybe talking a few hundred thousand in savings at most, I dont see how that much can have a dramatic influence on their abilty to pay the UCI security bond, and effect the teams finances.

There has got to be much more to it that a few riders taking a pay cut, thats a drop in the ocean. This is why im assuming they have also cut the budget in a lot of areas, support crew, vehicles, equipment etc. Or maybe are borrowing equipment from the continental team. Maybe scott are supplying more than just bikes, maybe the original deal was for cheap bikes and now scott are providing them gratis. Who knows. But theres much more to it than a few riders taking salary cuts.

 

[kurtinsc]

That's assuming an average wage of $400 000 (I assume we're working in dollars here, could be Euros, which would make it even more ridiculous). Over Pegasus' roster, I consider that to be beyond absurd. If they were paying out that kind of overinflated salary, they'd have got every big name in the sport.

Well I was assuming that for their entire staff, not just riders. I have no idea what kind of money is normal.

But if only a few riders took reductions, then it probably isn't that much. If it was 5 million dollars of salary for their entire organization, and 20% was across the board, you get a million. In any scenario, 20% of a teams salary would be significant to that team But cycling never seems to release contract info, so who knows how much of a cut was made and who took it.

 

[**Uru**]

Who knows what they are paying each rider. I am not sure anyone on that team is worth a million Euro these days. The cuts were probably designed to get their bank guarantee payment down to a certain level.

 

[Spare Tyre]

The only embarrassing thing is the lack of sponsors coming out of Aus. Considering the country has faired well out of the GFC its a damn indictment White cant find a local backer especially at a fraction of a price of some other sporting codes. Pathetic.

Capitalist economies these days are ponzi schemes; it can all go pear-shaped very quickly. We have seen what happened elsewhere and businesses and consumers alike are being cautious.

Most Australian sport involves advertising to a home market. Cycling needs sponsors looking to the European market. I'm doubtful Australian mining companies will see European cycling fans as critical to their future success. Surely there must be some Australian candidates -- I wondered about Toll Transport, but I don't know if they have a Euro presence -- but there can't be many.

 

[PCutter]

Capitalist economies these days are ponzi schemes; it can all go pear-shaped very quickly. We have seen what happened elsewhere and businesses and consumers alike are being cautious.

Most Australian sport involves advertising to a home market. Cycling needs sponsors looking to the European market. I'm doubtful Australian mining companies will see European cycling fans as critical to their future success. Surely there must be some Australian candidates -- I wondered about Toll Transport, but I don't know if they have a Euro presence -- but there can't be many.

There are plenty of Australian companies with a Euro focus, what you need in Australia is a company with a Euro focus AND an owner with an interest in cycling. Most Euro sponsors get involved because they like cycling, not just for the advertising benefit. Mapei being the perfect example.

My view has always been that to "brand" the team as Australian was a mistake from a marketing side. OK, register it in Oz, have a strong contingent of Australian riders, but to link the team as "the Australian Pro team" may have cut off potential Asian sponsors interested in European expansion (of which there are far more than Australian companies.

TeamSkyFan (sorry, not sure how to double quote in my reply - but Im dumb), I have read somewhere this morning (possibly Velonation or SBS, sorry for no link) that there has been some cost cut backs across the board, not just rider salaries per a quote from CW. And that a few of the sponsors have stepped up their commitment (so maybe you're on the right track re Scott) in addition to stepping up for the bank guarantee. I have also read a story quoting the bank guarantee required is for $1.4m (Im assuming AUD not Euro), which would imply total wage bill of around $5.5m as I think the guarantee has to be for 3mths salary (but Im not 100% on that).


Just found the article re cost savings and $1.4 guarantee
http://www.sbs.com.au/cyclingcentral/news/19111/Pegasus-gets-lifeline-from-“within-the-family”

 

[fatandfast]

Are you drunk?

What has Matt White got to do with it? What action do you suppose Robbie gets into with his brother?

You are right about CAT or a mining related company, that is big down here.

do you know anything about RM brother? He is special..you should find out just how much....have you ..a toool..look in the mirror.If you can forgive yourself I will also..don't be too hard on yourself..and don't let an earthmover get in your way

 

[auscyclefan94]

There are plenty of Australian companies with a Euro focus, what you need in Australia is a company with a Euro focus AND an owner with an interest in cycling. Most Euro sponsors get involved because they like cycling, not just for the advertising benefit. Mapei being the perfect example.

My view has always been that to "brand" the team as Australian was a mistake from a marketing side. OK, register it in Oz, have a strong contingent of Australian riders, but to link the team as "the Australian Pro team" may have cut off potential Asian sponsors interested in European expansion (of which there are far more than Australian companies.

TeamSkyFan (sorry, not sure how to double quote in my reply - but Im dumb), I have read somewhere this morning (possibly Velonation or SBS, sorry for no link) that there has been some cost cut backs across the board, not just rider salaries per a quote from CW. And that a few of the sponsors have stepped up their commitment (so maybe you're on the right track re Scott) in addition to stepping up for the bank guarantee. I have also read a story quoting the bank guarantee required is for $1.4m (Im assuming AUD not Euro), which would imply total wage bill of around $5.5m as I think the guarantee has to be for 3mths salary (but Im not 100% on that).


Just found the article re cost savings and $1.4 guarantee
http://www.sbs.com.au/cyclingcentral/news/19111/Pegasus-gets-lifeline-from-“within-the-family”

Name a sponsor from australia which doesn't already sponsor a sport, that would want to invest in an australian cycling team which competes during the night over here, doesn't get overly much coverage in a country which cycling is not a mainstream sport? Also have to factor in that the company would be wanting to expand their business into europe.

Capitalist economies these days are ponzi schemes; it can all go pear-shaped very quickly. We have seen what happened elsewhere and businesses and consumers alike are being cautious.

Most Australian sport involves advertising to a home market. Cycling needs sponsors looking to the European market. I'm doubtful Australian mining companies will see European cycling fans as critical to their future success. Surely there must be some Australian candidates -- I wondered about Toll Transport, but I don't know if they have a Euro presence -- but there can't be many.

Spot on!

 

[PCutter]

Name a sponsor from australia which doesn't already sponsor a sport, that would want to invest in an australian cycling team which competes during the night over here, doesn't get overly much coverage in a country which cycling is not a mainstream sport? Also have to factor in that the company would be wanting to expand their business into europe.

Easy, with only about 10 seconds thought....Macquarie Bank. Lots of interests in Europe, they are constantly doing deals over there. Macquarie Airports for example owns the Copenhagen and Brussels airport - thats Belgium and Denmark, a couple of cycle fanatic countries. They also have done deals, and at various times owned any number of assets in Europe including infrastructure, office buildings, meida.... to name a few, and always doing more. The CEO's bonus last year would cover the full budget of Pegasus x 2.

They're aren't already a major sponsor of any sporting team (that I can think of), and with a Sydney Investment Banker (admittedly not from MacBank) credited with coining the phrase "cycling is the new golf" I dare say there's some domestic kudos for the the bank as well. So its a double whammy, Euro exposure for their Euro ops, and cycling in Oz being loved by CEOs and CFOs of many Australian company's, not to mention people in the financial markets, many of who can be having espresso next to their $20k Pinarello's with full Super Record in eastern suburbs coffee shops on a Sunday.

And to top it off, a bit of a warm fuzzy about the 'millionaires factory', which it doesn't normally enjoy. If I were CW, or trying to put a team together, MacBank would be the FIRST door i'd be knocking on.

 

[microdose]

Easy, with only about 10 seconds thought....Macquarie Bank. Lots of interests in Europe, they are constantly doing deals over there. Macquarie Airports for example owns the Copenhagen and Brussels airport - thats Belgium and Denmark, a couple of cycle fanatic countries. They also have done deals, and at various times owned any number of assets in Europe including infrastructure, office buildings, meida.... to name a few, and always doing more. The CEO's bonus last year would cover the full budget of Pegasus x 2.

They're aren't already a major sponsor of any sporting team (that I can think of), and with a Sydney Investment Banker (admittedly not from MacBank) credited with coining the phrase "cycling is the new golf" I dare say there's some domestic kudos for the the bank as well. So its a double whammy, Euro exposure for their Euro ops, and cycling in Oz being loved by CEOs and CFOs of many Australian company's, not to mention people in the financial markets, many of who can be having espresso next to their $20k Pinarello's with full Super Record in eastern suburbs coffee shops on a Sunday.

And to top it off, a bit of a warm fuzzy about the 'millionaires factory', which it doesn't normally enjoy. If I were CW, or trying to put a team together, MacBank would be the FIRST door i'd be knocking on.

Great suggestion - there's no question they could afford it, it would be less than the bonus on the deal I'm currently working on with them.....

 

[PCutter]

it would be less than the bonus on the deal I'm currently working on with them.....

See! Microdose is their target market!

 

[LastRide]

do you know anything about RM brother? He is special..you should find out just how much....have you ..a toool..look in the mirror.If you can forgive yourself I will also..don't be too hard on yourself..and don't let an earthmover get in your way

Apologies, i keep forgetting that for a lot of forum users english is not their first language.

I know a lot about RM as i was a team mate and room mate of his for a few seasons. I will not get into talking about his brother, i dont know him personally. I failed to see what you are talking about regarding his brother and him in the usa?

Matt White is the Garmin Director and Chris White is the Pegasus manager. Both are from Australia but are different people.

Bit less Grappa tonight hey?

 

[auscyclefan94]

I guess that is not bad company for something like this. I guess it would come down to if Macquarie would see it as a worthwhile investment.

 

[PCutter]

I know a lot about RM as i was a team mate and room mate of his for a few seasons. I will not get into talking about his brother, i dont know him personally. I failed to see what you are talking about regarding his brother and him in the usa?

Last Ride, are you a former Lotto rider who lives on the GC? (dont want to 'out' a forum contributor by name)

 

[LastRide]

Last Ride, are you a former Lotto rider who lives on the GC? (dont want to 'out' a forum contributor by name)

No, not Lotto. Not NG, if that was what you were thinking.

 

[Spare Tyre]

Great suggestion - there's no question they could afford it, it would be less than the bonus on the deal I'm currently working on with them.....

So they're solid now, are they? They nearly went completely under a couple of years ago.

 

[PCutter]

No, not Lotto. Not NG, if that was what you were thinking.

That is who I was thinking, but I can now guess

 

[Andy99]

Macquarie bank? Jeez, is there anything in Australia not named after this guy?