Professional Cycling For the Fans - I wanna own a team - how much do it take?

How much money does it take to bankroll a team? How much does a primary sponsor contribute? I'm assuimg sponsorship pays the bills and any prizes are considered bonus money?

And is it me or are all the riders pretty much mercenaries and no lasting team loyalty exists meaning they are always looking for greener pastures? Not that I blame them, I'm just curious to know.

Funny you said bankroll a team...look at some of their sponsors....saxobank...rabobank. Banks = big money multi-national corporations that have an endless amount of resources. Must be around 10 million a year to bankroll a team like Astana...just a guess though.

I think I heard on TdF coverage that the primary sponsor of a major team chips in around $8 million per year.

I think I heard on TdF coverage that the primary sponsor of a major team chips in around $8 million per year.

Or you can pull an Astana and work on a budget of $0.

I think I heard on TdF coverage that the primary sponsor of a major team chips in around $8 million per year.

That's it? $8 mill for the amount of marketing exposure in Europe the Tour, Vuelta, Giro and classics bring, you would think American corporations would be lining up.

I actually think total a team has to have a guaranteed$20-25 mil a year.

I actually think total a team has to have a guaranteed$20-25 mil a year.

He did say "primary sponsor". So perhaps the other 12-17 million can be made up from other sponsors. Not sure though, but I think you are right that it takes over 20.

$20 million is very high. I think Astana used to be hyped as a $15 million team, no? This isn't F1 we're talking about, with the billion-strong TV audience (a figure I've always doubted) and million-dollar cars.

$10 - $15 million is the usual budget for a top UCI team I think.

The lowest UCI Pro Team budget is 5.2 million, average is 12.2 million USD.

http://www.roadcycling.co.nz/TourdeFrance/tour-de-france-demystified-part-3.html

Doing some math from this site:

http://www.uci.ch/Modules/ENews/ENewsDetails.asp?id=NjQzOA&MenuId=MTYxNw&LangId=1&BackLink=%2FTemplates%2FUCI%2FUCI5%2Flayout.asp%3FMenuID%3DMTYxNw

The Overall Budget for UCI protour teams in 09 was 182 million euros divide by 18 teams and you have about 10.2 million Euro per squad budget which is roughly $15million US. The lowest budgeted team operated on a budget of 3.7 million euro or around $5 million US. So theoretically you could "own" and run a team for one year at around the $5 million US mark but to run a team like Astana (if Lance was getting paid) I guarantee you that you'd be pushing that $20 million US mark.

edit: corrected for 20 teams see the above post

That's right - so $20 million will easily get you places. Given the costs between teams are roughly similar (buses, equipment etc), the wages are the determining factor.

I can't believe it cost that much to run a bicycle racing team. You could easily race in Nascar or a Daytona Prototype for that kind of money, both of which are legitimate business opportunities.

I can't believe it cost that much to run a bicycle racing team. You could easily race in Nascar or a Daytona Prototype for that kind of money, both of which are legitimate business opportunities.

Transportation probably cost quite a bit - shuttling from one country to the other from training and races. Plus, its a full roster of 20 racers, support staff, mechanics, lodging costs etc.

I can't believe it cost that much to run a bicycle racing team. You could easily race in Nascar or a Daytona Prototype for that kind of money, both of which are legitimate business opportunities.

DP is $2-3 million. It is not a business opportunity except as a write-off.

These aren't investments, other than "investments in branding" with funds coming out of the marketing, advertising and R&D budgets for corporate sponsors.

Team Katusha is reported at $30 mil/yr. The team is effectively owned by the Russian Federation. With state-run natural gas corporation as main sponsor only imagination is the limit...However, Astana was funded on the similar principle, with primary sponsor being another gas corporation, and look what happened...

FWIW

SF

Paul Newman, I think used to run, or maybe still does, a car in the open wheel car races, and he always (publicly) said it cost him $20,000,000.00 per year.
So if Astana can get a whole team for that it's a bargain. But bikes and bike tools are a lot cheaper than cars and car tools.
When we say write off, that still means, you have to take in $20,000,000.00, or more, and GIVE it to the team. It's not as though when you say "write off" the money just appears in your wallet! And after you take it in, and give it to the team, you no longer have the money.
So...
dc

In my opinion, it's a good value for the sponsor. For $10 million you get your name plastered on every sports page and on tv for hours every day.

Cheaper than sponsoring an F1 team.

In my opinion, it's a good value for the sponsor. For $10 million you get your name plastered on every sports page and on tv for hours every day.

Cheaper than sponsoring an F1 team.

True. But still, cycling lacks that oomph, even though F1 isn't too big in the US either. Guess supercars have that glamor super bikes lack.

In my opinion, it's a good value for the sponsor. For $10 million you get your name plastered on every sports page and on tv for hours every day.

Cheaper than sponsoring an F1 team.

And if Lance isn't involved in next years TDF that coverage drops to just about zero. Even with him, the N.A. interest is really only for 21 days. There are losts of places to through sponsorship/advertising dollars that are more attractive to N.A. corporations. You might as well be racing a yacht as riding a bicycle.

Sponsors want glamour sports with epic settings. That's why you don't see companies lining up to sponsor endurance athletes too much - they'd prefer a huge stadium, great interest in the game, and extensive coverage. However big the TdF is, its audience is tiny compared to soccer, cricket or F1.

In my opinion, it's a good value for the sponsor. For $10 million you get your name plastered on every sports page and on tv for hours every day.

Cheaper than sponsoring an F1 team.

Not sure I agree with you. Ask the average person watching the TdF what business Astana is in and see if they know. Or Silence-Lotto...or Slipstream.

Not sure I agree with you. Ask the average person watching the TdF what business Astana is in and see if they know. Or Silence-Lotto...or Slipstream.

That's being America-Centric though. FDJ doesn't sponsor a team to advertise to Americans. This is primarily a European sport. My guess would be that Quick Step in Europe is about as well known as Jelly Belly is in America. I doubt that AG2R gives to hoots about whether or not Americans know who they are.

Remember also that the TDF is just one race in a racing calendar that runs from January to October.

And if Lance isn't involved in next years TDF that coverage drops to just about zero

In North America yes. Most Euro teams are sponsored by European companies.

Funny you said bankroll a team...look at some of their sponsors....saxobank...rabobank. ...

Don't forget Caisse D'Epargne, Confidis (and recent departee Credit Agricole). Add gambling (which is hard to distinguish from banking these days), and you have Francais Des Jeux, and Silence Lotto, and Investment Houses (Ag2R), and that's nearly half the Pro Tour teams.