Professional Cycling Sponsorship Discussion Thread

[Jancouver]

Belkin ending sponsorship of the team ... seems like cycling just cant get a break.

While ASO is raking in all the profits from cycling, the teams are struggling to stay afloat.

Something should change for real!

Discuss ...

 

[TourOfSardinia]

Belkin ending sponsorship of the team ... seems like cycling just cant get a break.

While ASO is raking in all the profits from cycling, the teams are struggling to stay afloat.

Something should change for real!

Discuss ...

Maybe it to make space for Rabobank to step back in.
Now there's been a "sea change" in cycling and
now the banking crisis is "over".

 

[Jancouver]

Maybe it to make space for Rabobank to step back in.
Now there's been a "sea change" in cycling and
now the banking crisis is "over".

I doubt Rabo will ever come back to cycling.

Belkin not renewing
Giant-Shimano without sponsor for 2015
Alonso team not happening

... but I'm sure ASO will generate record profit from TDF this year.

Its like FIFA or UEFA keeping all the profits from WC and Champions League and telling all the teams to find more sponsors

 

[ILovecycling]

We need sponsors like Discovery,T - mobile,Credit agricole etc cuz nowadays its just pathetic

 

[Tyre Byter]

I doubt Rabo will ever come back to cycling.

Belkin not renewing
Giant-Shimano without sponsor for 2015
Alonso team not happening

... but I'm sure ASO will generate record profit from TDF this year.

Its like FIFA or UEFA keeping all the profits from WC and Champions League and telling all the teams to find more sponsors

Yah, crazy business model - suicidal, in fact.

No gate receipts for the teams and ASO suctions up almost all the revenue. What a monopoly!

Whatever happened to the breakaway league talk? (Besides Johan being banned and JV pursuing an MBA and Oleg chasing his next ADD impulse)

 

[Race Radio]

Belkin ending sponsorship of the team ... seems like cycling just cant get a break.

While ASO is raking in all the profits from cycling, the teams are struggling to stay afloat.

Something should change for real!

Discuss ...

Yeah, the model is broken...... Perhaps Markov and his fellow rich team owners can change that. Could be a very chaotic year next year.

I hear Giant-Shimano is close to a new sponsor......but riders were not being paid earlier this year so who knows if they will collapse.

Going to be some big bike changes this year and next, but that is internal money. I only know of one team that is bringing in a real, outside the sport, sponsor before the Tour. That is not a good sign.

The teams are owned mostly by a bunch of rich guys as a hobby. It is only a matter of time before these rich guys start flexing their muscles.

 

[rzombie1988]

Not surprised. The teams are struggling to keep up with all the races and struggling to make profits while the UCI expands. Just think of all the teams that have folded during this "World Tour Reign of Terror" compared to before.

 

[IndianCyclist]

Unlike F1 or football, there is a lack of main big sponsors.

 

[Dazed and Confused]

well if the big Corps doesn't want to touch us, there is only only one solution short term: bring the cost down to a more compelling level.

On a another, the cash invested will be directly proportional to the number of fans involved. There are simply too man dull races on TV. Too controlled, too predictable with nothing happening until the last few kilometers. Fan base will continue to be small this way.

 

[ILovecycling]

well if the big Corps doesn't want to touch us, there is only only one solution short term: bring the cost down to a more compelling level.

On a another, the cash invested will be directly proportional to the number of fans involved. There are simply too man dull races on TV. Too controlled, too predictable with nothing happening until the last few kilometers. Fan base will continue to be small this way.

I guess this july might help it,I expect the most entertaining Tour in years.better tv ratings -- better sponsors

 

[Akuryo]

I guess this july might help it,I expect the most entertaining Tour in years.better tv ratings -- better sponsors

If the theory of Froome cracking mentally is true and Nibalis late form won't increase, Contador should take this with ease. So maybe we will see only a fight for second place ... again.

 

[WillemS]

I've got a couple of cents, two actually, to put in.

One of the problems is, in my opinion, that sponsoring a major cycling team is looked at as participating in a high risk, high reward gambling game. The reward of sponsoring is, at least in Europe, the great exposure you get in the media. Just look at Belkin, they were basically an unknown company in the Netherlands, now most have at least heard their name and will recognize it when they visit an electronics store.

However, it's also a high risk game, as there's always the possibility of a major scandal developing in cycling. It does not even have to be a scandal involving the team you're sponsoring, as any (major) scandal will automatically scatter the fragile image of pro cycling. So, whether it's Belkin disconnecting, the Sky train derailing, or Europcar having a head-on collision, potential sponsors are worried of the fall-out.

Which brings us to the current situation: Get in, earn the reward and get out before something happens, just like Belkin did. They've already maximized the rewards, but feel that the rewards of continuing are not worth taking the risks.

Another problem is that a lot of sponsors are just too small a company. They're never going to provide a stable sponsorship base for a team, as they just want to maximize the exposure in the first year or so, followed by a quick exit to minimize the costs.

 

[Jancouver]

So there you have it ...
Belkin is now begging the fans for help and is asking for monetary donations.

We already had one of those and if I remember correctly the orange/green Basque jerseys are no longer around.

 

[SKSemtex]

So there you have it ...
Belkin is now begging the fans for help and is asking for monetary donations.

We already had one of those and if I remember correctly the orange/green Basque jerseys are no longer around.

Something is rotten in the state of Denmark.

Something has to be changed, and has to be changed soon.

I do not mind to sponzor my team. People are willing to spend hundreds per year to visit their football or hockey team. Just the proper way has to be found.

BTW **** the ASO **** the UCI

 

[Race Radio]

Sponsors of teams better be ready for chaos. The rich guys who own teams are getting ready to go to war with the ASO. Next year could be chaos. Pure chaos

 

[Netserk]

I don't understand why teams only are allowed two name sponsors. Why not four or five? I think that could help.

 

[janraaskalt]

I don't understand why teams only are allowed two name sponsors. Why not four or five? I think that could help.

I am not sure newspapers or TV commentators will write/pronounce all of the sponsors. How often is Omega Pharma - QuickStep quoted in full? That's only 2 sponsors.

 

[manafana]

the crowd funding if done right could easily fund a team, needs be different rewards for different levels.

Hopefully some sponsors step in, google have good reason to get involved in cycling as its a product offering they want to use their tech in.

Still amazed someone as big as Giant doesn't want a team like Trek has.

 

[Arnout]

Yah, crazy business model - suicidal, in fact.

No gate receipts for the teams and ASO suctions up almost all the revenue. What a monopoly!

Whatever happened to the breakaway league talk? (Besides Johan being banned and JV pursuing an MBA and Oleg chasing his next ADD impulse)

All this ASO bashing... without the Tour, the teams would have no sponsors to begin with. The entire business model of cycling is based on the exposure in July. Yes, ASO keeps the TV money but it's the teams that benefit most from that race.

 

[Jancouver]

All this ASO bashing... without the Tour, the teams would have no sponsors to begin with. The entire business model of cycling is based on the exposure in July. Yes, ASO keeps the TV money but it's the teams that benefit most from that race.

And TDF would be nothing without the best teams/riders. Are you gonna watch it if the best teams wont show up? I dont think so.

Its simple, every event success is based on who is participating. Are you currently watching Tour of Iran? Why not? Because the best teams didn't show up.

If there is a substitute race (lets call it Tour of Europe) during the TDF and all the best riders are racing there I can tell you that no TV will buy the coverage for TDF without the best teams.

TDF is the most popular race because the best riders are participating and ASO should split the profits. Its like UEFA keeping all the profits from the Champions League just because the TV exposure is good for the team sponsors.

 

[karlboss]

War game it through. WT teams boycott the TDF. Pro conti teams step up and take all 20 -22 team places. Sponsors catch wind, and given that 80% of cycling exposure is TDF, big money will get thrown at these teams. Off season, they have the money they buy the big riders and in the space of one boycott, what has happened, the current WT riders are screwed for 1 year, and teams get screwed for longer and the Tour/ASO barely notice. Sure all the world tour teams rock up to the Giro, but only real fans watch that anyway, so it won't matter. Follow the money. They may have to boycott for years to hurt the ASO.
The ASO don't care that Belkin may fold, someone else can anonymously come 6th. 2008 they kept the reigning champion out, there is no footnote, Sastre tour winner, but the best rider in the world didn't ride.
A case needs to be made if they are going to give up anything. Does anyone else not think it strange that the ASO has the money and the UCI makes the rules...this is stupid.

 

[SKSemtex]

And TDF would be nothing without the best teams/riders. Are you gonna watch it if the best teams wont show up? I dont think so.

Its simple, every event success is based on who is participating. Are you currently watching Tour of Iran? Why not? Because the best teams didn't show up.

If there is a substitute race (lets call it Tour of Europe) during the TDF and all the best riders are racing there I can tell you that no TV will buy the coverage for TDF without the best teams.

TDF is the most popular race because the best riders are participating and ASO should split the profits. Its like UEFA keeping all the profits from the Champions League just because the TV exposure is good for the team sponsors.

Hard to tell the total income of UEFA but price money distribution is quite trasparent and quite generous I think compering to ASO. Not talking about the money from tickets, food .... they receive for each domastic match.
http://www.tsmplug.com/richlist/uefa-champions-league-tv-prize-money-distribution/

 

[Arnout]

While I understand the reasoning behind the plea for revenue sharing, it's not going to solve anything. Read this excellent article: http://inrng.com/2014/01/problem-revenue-sharing/

The Tour generates a profit of an estimated €25-40 million. Dividing that sum among all participants is not going to solve anything. ASO will never share all the money, but let's be generous and do just that: that leaves at most some €1.8 million per team for Tour participation (a realistic sum would be at most half that). Arguably, teams that perform better will generate more interest and should get a larger share of the pie (which would mean less stability in income for the teams). Sure, that's a lot of money, but it won't pay for a cycling team at all. The main source of income will still be the sponsor and the fact that any team will get this fee means the only result in the medium term would be that salaries of riders would go up (forget about using this money for longer-term planning, that's not going to happen in sports), as I estimate that like 75% of the sponsor money is spent on those salaries. There is no incentive not to use the extra income for anything else than for rider salaries, meaning nothing changes apart from a less stable ASO. I much rather have a sports organizer that can guarantee a high quality and stable race calender, from Tour to Paris - Nice to races like Paris - Tours. Apart from the Tour, race organizers have a harder time organizing their races than the teams have attracting sponsors...

 

[Ryo Hazuki]

Belkin ending sponsorship of the team ... seems like cycling just cant get a break.

While ASO is raking in all the profits from cycling, the teams are struggling to stay afloat.

Something should change for real!

Discuss ...

the fact that belkin is ending sponsorship and screwed the team is all to blame on their horrible manager richard plugge.

 

[Jancouver]

While I understand the reasoning behind the plea for revenue sharing, it's not going to solve anything. Read this excellent article: http://inrng.com/2014/01/problem-revenue-sharing/

The Tour generates a profit of an estimated €25-40 million. Dividing that sum among all participants is not going to solve anything. ASO will never share all the money, but let's be generous and do just that: that leaves at most some €1.8 million per team for Tour participation (a realistic sum would be at most half that). Arguably, teams that perform better will generate more interest and should get a larger share of the pie (which would mean less stability in income for the teams). Sure, that's a lot of money, but it won't pay for a cycling team at all. The main source of income will still be the sponsor and the fact that any team will get this fee means the only result in the medium term would be that salaries of riders would go up (forget about using this money for longer-term planning, that's not going to happen in sports), as I estimate that like 75% of the sponsor money is spent on those salaries. There is no incentive not to use the extra income for anything else than for rider salaries, meaning nothing changes apart from a less stable ASO. I much rather have a sports organizer that can guarantee a high quality and stable race calender, from Tour to Paris - Nice to races like Paris - Tours. Apart from the Tour, race organizers have a harder time organizing their races than the teams have attracting sponsors...

This is not just about TDF. There is cycling on TV every week and somebody (ASO) is collecting all the TV right fees and as far as I know, the teams get nothing from that.

They are behind every other race including;

Vuelta a España
Paris-Roubaix,
Liège-Bastogne-Liège,
Flèche Wallonne
Paris-Tours,
Paris-Nice,
Critérium du Dauphiné
Qatar
Oman
Tour of Norway

and many others ...