Sponsors success, who said the sport is in trouble

[Dermie]

Quote from Bob Stapleton
"What we're focused on is these repeatable systems where we find and develop fine young talent and I think we've shown that we can do that over the last three or four years. So I think our goals are to do that work and we think that we can consistently create value for sponsors. The team has generated something like 400 million in euros in media value over the last three years, and that's a big number and we think that we can sustain that level as we develop new athletes."

That seems like good value, how much does the team cost to run, Eu15mill, Eu25mill, a year??

 

[The Hitch]

Quote from Bob Stapleton
"What we're focused on is these repeatable systems where we find and develop fine young talent and I think we've shown that we can do that over the last three or four years. So I think our goals are to do that work and we think that we can consistently create value for sponsors. The team has generated something like 400 million in euros in media value over the last three years, and that's a big number and we think that we can sustain that level as we develop new athletes."

That seems like good value, how much does the team cost to run, Eu15mill, Eu25mill, a year??

If he pulled that fact out of somewhere other than you know where then thats great news.

 

[Maxiton]

If he pulled that fact out of somewhere other than you know where then thats great news.

Right, but don't forget he is in the midst right now of trying to find a sponsor. Think about it. Arguably the most successful team in pro cycling, and here in the middle of the Tour he hasn't yet secured a sponsor. Because of that he is losing Cav and stands very soon to lose the rest of his riders.

So the good news is wrapped in bad news. Potentially, anyway. Let's hope a sponsor comes through real soon. It's hard to believe that HTC or some similar company won't jump at the chance to get such high value marketing.

 

[Race Radio]

Quote from Bob Stapleton
"What we're focused on is these repeatable systems where we find and develop fine young talent and I think we've shown that we can do that over the last three or four years. So I think our goals are to do that work and we think that we can consistently create value for sponsors. The team has generated something like 400 million in euros in media value over the last three years, and that's a big number and we think that we can sustain that level as we develop new athletes."

That seems like good value, how much does the team cost to run, Eu15mill, Eu25mill, a year??

Yet they can't find a sponsor.....nor can Leopard

 

[craig1985]

Yet they can't find a sponsor.....nor can Leopard

So would you say that HTC folding is a certainty?

 

[hfer07]

Quote from Bob Stapleton
"What we're focused on is these repeatable systems where we find and develop fine young talent and I think we've shown that we can do that over the last three or four years. So I think our goals are to do that work and we think that we can consistently create value for sponsors. The team has generated something like 400 million in euros in media value over the last three years, and that's a big number and we think that we can sustain that level as we develop new athletes."

That seems like good value, how much does the team cost to run, Eu15mill, Eu25mill, a year??

like a typical businessman-Stapleton has to project that kind of success in order to attract potential sponsors to step in-but if the revenues were such as he claims-wouldn't the current sponsors rather continue their "investment" to grow instead of pulling out?

bottom line: he's full of sh!t

 

[Race Radio]

So would you say that HTC folding is a certainty?

No, I think Bob will get a sponsor and they will announce it on the rest day

 

[shieh165]

** Advertising Removed **

 

[Dermie]

like a typical businessman-Stapleton has to project that kind of success in order to attract potential sponsors to step in-but if the revenues were such as he claims-wouldn't the current sponsors rather continue their "investment" to grow instead of pulling out?

bottom line: he's full of sh!t

They may just budget a certain amount for a period in one sector then move onto another for another period to try to get a better spread of publicity for their product over a broader spectrum of sport or whatever the medium they want to use.

 

[taiwan]

Quote from Bob Stapleton
"What we're focused on is these repeatable systems where we find and develop fine young talent and I think we've shown that we can do that over the last three or four years. So I think our goals are to do that work and we think that we can consistently create value for sponsors. The team has generated something like 400 million in euros in media value over the last three years, and that's a big number and we think that we can sustain that level as we develop new athletes."

That seems like good value, how much does the team cost to run, Eu15mill, Eu25mill, a year??

The claim about developing young talent is convincing, looking at their results with Cav, Greipel, EBH, Goss, Degenkolb, Rasmussen. Could just be recruiting well, but it works.

 

[Anonymous]

the thing with sponsors is eventually they get all they can get from the relationship.

Had most people heard of HTC phones prior to the team, no, but now they have, its served his purpose, they have established their market. The same with Garmin, when they started out very few people knew about their products, now they do.

The exposure is high initially, giving a brand entry into the marketplace, but gradually over a period of years the benefits decrease.

 

[The Hitch]

the thing with sponsors is eventually they get all they can get from the relationship.

Had most people heard of HTC phones prior to the team, no, but now they have, its served his purpose, they have established their market. The same with Garmin, when they started out very few people knew about their products, now they do.

The exposure is high initially, giving a brand entry into the marketplace, but gradually over a period of years the benefits decrease.

Are you seriously suggesting the success of the HTC brand is down to a fact that they sponsored a team in a sport 99% of the world doesnt care about?

 

[taiwan]

They could have popularised the brand among some rich minorities who're into cycling. Middle class/white collar Brits/Americans?

 

[nesocip]

As a person who has spent half of my life studying/doing marketing i gotta be a bit rude here and call his statement a sack of runny ****.

Maybe the hardest thing in marketing is to quantify the effects of advertising, and there are many different methods developed by lots of different great minds of marketing, and every single one of them is full of holes and far from "good", not to say perfect.

I have no idea which method he used to come to these silly figures, but to have such a return from sponsoring a sports team (any sports team, even football) would make it probably the best sponsorship contract (for the sponsor) in the history of sports.

 

[El Pistolero]

Are you seriously suggesting the success of the HTC brand is down to a fact that they sponsored a team in a sport 99% of the world doesnt care about?

99% of the world that matters knows and watches the Tour at some point in their life.

 

[nesocip]

99% of the world that matters knows and watches the Tour at some point in their life.

Yes, and they all go buy HTC phones after Cav takes a stage.

 

[King Of The Wolds]

99% of the world that matters knows and watches the Tour at some point in their life.

For sure. But whilst pretty much everyone knows who Mark Cavendish is in the UK now, I bet there's hardly anyone who knows what team he races for.

 

[craig1985]

Companies like AG2R, Cofidis, Rabobank (to name a few) obviously still view cycling as a worthwhile cause to advertise their product. I mean how many times have Cofidis tried to pull out and they keep remaining to be a sponsor of their team?

 

[L'arriviste]

Companies like AG2R, Cofidis, Rabobank (to name a few) obviously still view cycling as a worthwhile cause to advertise their product. I mean how many times have Cofidis tried to pull out and they keep remaining to be a sponsor of their team?

If Bob Stapleton is trying to get global sponsors in non-cycling markets, I think nowadays it's a tough sell. And with what he's brought in himself (and not taken over from others) - HTC, Columbia, Skype etc. - he's not really connected with the European regions.

For the purposes of their sponsorship, most non-cycling sponsors now in cycling are all "regional" sponsors whose core markets remain very much engaged with the sport by tradition. Cofidis sells loans in FR and BE, AG2R insures in FR, Rabo operates in NL and the rest of Europe (though it does try to show off at the ToC due to certain US interests).

As if to underline that, many of the secondary sponsors are in fact themselves funded by administrative regions. Vendée, Euskadi, Topsport Vlaanderen, Vorarlberg etc. There used to be many more than that (Illes Balears, Communitat Valenciana, Brandenburg etc) until the scandals broke and the money dried up.

Bob's obviously not in bed with any of that, though I wish him luck, because his teams have always managed to look polished even if they're on a shoestring budget.

 

[MartinGT]

the thing with sponsors is eventually they get all they can get from the relationship.

Had most people heard of HTC phones prior to the team, no, but now they have, its served his purpose, they have established their market. The same with Garmin, when they started out very few people knew about their products, now they do.

The exposure is high initially, giving a brand entry into the marketplace, but gradually over a period of years the benefits decrease.

So what happens with Team Sky? Everyone know about Sky and the twunt Murdoch already!

 

[El Pistolero]

Yes, and they all go buy HTC phones after Cav takes a stage.

Brand recognition. Are you really going to argue that Coca cola for example should stop advertising because no one will buy their product because of a commercial lol? And they do sponsor the Tour by the way.

 

[nesocip]

Brand recognition. Are you really going to argue that Coca cola for example should stop advertising because no one will buy their product because of a commercial lol? And they do sponsor the Tour by the way.

My comment was an ironic continuation of your statement, following in the steps of its sheer stupidity, excuse my language.

There is a world beyond Europe. To be more specific there is a world (a big, expanding, unsaturated market) in SE Asia that DOES have the means to buy stuff, regardless of what they tell you on CNN and doesnt give a flying **** about cycling, Tour or Mark Cavendish.

I own a HTC phone, and i did buy it because they support the sport i love (even if its a team i dislike), but me, you, and other posters here are FANATICS representing a tiny tiny minority of world's population.

As for brand awareness (not recognition), it only goes so far, and 99% of the "99% of people that matter in the world" already are more then aware of HTC. So you contradict your own statement there.

Gonna go home now finally to watch the race and stop wasting time discussing **** with laymen.

Have a nice day.

 

[El Pistolero]

My comment was an ironic continuation of your statement, following in the steps of its sheer stupidity, excuse my language.

There is a world beyond Europe. To be more specific there is a world (a big, expanding, unsaturated market) in SE Asia that DOES have the means to buy stuff, regardless of what they tell you on CNN and doesnt give a flying **** about cycling, Tour or Mark Cavendish.

I own a HTC phone, and i did buy it because they support the sport i love (even if its a team i dislike), but me, you, and other posters here are FANATICS representing a tiny tiny minority of world's population.

As for brand awareness (not recognition), it only goes so far, and 99% of the "99% of people that matter in the world" already are more then aware of HTC. So you contradict your own statement there.

Gonna go home now finally to watch the race and stop wasting time discussing **** with laymen.

Have a nice day.

Everybody knows Coca Cola, but they still do a lot of ads. Why? To keep up their number one position.

Yeah, Asia. I'm sure there's a market there. But cycling will also grow there when the people get "richer".

 

[Dr. Maserati]

As a person who has spent half of my life studying/doing marketing i gotta be a bit rude here and call his statement a sack of runny ****.

Maybe the hardest thing in marketing is to quantify the effects of advertising, and there are many different methods developed by lots of different great minds of marketing, and every single one of them is full of holes and far from "good", not to say perfect.

I have no idea which method he used to come to these silly figures, but to have such a return from sponsoring a sports team (any sports team, even football) would make it probably the best sponsorship contract (for the sponsor) in the history of sports.

I agree that Bob is certainly putting a favorable spin on his numbers.

I believe that value is calculated on exposure of the name/sponsor through the different media - TV, print, online - and on how prominent that exposure is.

Of course how this relates to sales or brand exposure is much harder to quantify.
Having said that I always believe that sponsorship in cycling is excellent value - it gives high profile exposure in many countries, also cycling fans are quite loyal and it gives sponsors the opportunity to invite guests etc to events.

 

[Libertine Seguros]

Are you seriously suggesting the success of the HTC brand is down to a fact that they sponsored a team in a sport 99% of the world doesnt care about?

The success wasn't due to sponsoring the cycling team. Of course it wasn't. But the cycling team was part of a move for brand recognition. Now they're a hugely well-known company, plunging money into a minority recognition sport is unnecessary expenditure, so they don't need or want it anymore.

Stapleton could finance the team out of his own pockets again. I hear that he's developed a way to spontaneously turn his completely idiotic statements into money, so the team will be safe until 2074.