Show me the Money

It's always amazed me how Pro cycling teams continue to exist financially...and of course many successful teams have ceased to exist (Columbia HTC, Discovery...). It seems to me that the only real thing that teams can offer potential sponsors at the moment is the possible exposure to an international market. This limits the sorts of organisations willing to stump up the sort of money required. Also there's the not inconsiderable chance of being linked into some sort of drug related negative publicity (Festina?)

With most major international sports (World Football, Formula One..) backers of the teams have some potential return from gate revenue, a share of the broadcast rights etc so there is  some basis for on going funding of the team. They are not completely at the mercy of the advertising budget of some multi national corporation. When the corporate money dries up then cycling is looking for generous benefactors. At the moment it seems unless there's a wealthy philanthropist willing to sign big cheques (Gerry Ryan et al) many teams would not be a the start line. 

Pro cycling is a free spectator sport and always will be, so outside of sponsorship any revenue back to the teams must come from either merchandising (minor money) or a share of the broadcast rights (major money).

If we want to provide a stable environment for teams to grow, build the careers of it's cyclists and develop younger talent then a share of revenues earned from the sport must somehow be fed back to the teams themselves. They are what makes the sport.

Cyclingnews ran this piece yesterday:

Giro d’Italia race organisers look set to sign historic deal

Sharing television rights between race organisers and cycling’s elite teams could be within touching distance. Cyclingnews understands that a deal between Italy’s RCS and the sport’s major teams is close to agreement.
RCS Sport organises a portfolio of Italy’s grandest races, including the Giro d’Italia, Tirreno-Adriatico, Milan-San Remo and the Giro di Lombardia. A deal would be a historic moment in cycling, as traditionally race organisers pocket all television rights, selling their broadcast rights on potentially global scales.


Last year a number of team managers openly discussed revenue sharing opportunities with organisers in a bid to stabilise their sponsor’s investments and the teams in general. The possible deal would see teams earn a percentage of RCS Sport’s television revenue, a move that contrasts to ASO, the organisers of the Tour de France, who retain all rights.


Such a move from RCS Sport would enable them attract teams’ most high profile riders in the knowledge that teams would be only too happy to supply their stars in order to gain financial rewards. The higher the profile of the riders, the higher the potential would be for advertising rates and television revenues.


For a more detailed look at some of the implications see:


http://inrng.com/2012/05/race-revenue-sharing/#more-8473