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Analysis: Is the time right for teams to share TV revenue?

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Old 05-03-12, 06:20 AM
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Analysis: Is the time right for teams to share TV revenue?

Finally, a chance to put the teams on better financial footing so we don't have debacles like HTC folding for lack of a sponsor.

https://velonews.competitor.com/2012/...revenue_216283
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Old 05-03-12, 09:22 AM
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Interesting article. One thing it doesn't mention in comparison with US leagues is that most teams in the MLB and the NFL both get substantial taxpayer subsidies in the form of stadium funding, tax breaks, special exemptions from anti-trust laws etc. These are key elements to any pro team's income statement. Also, cycling's inability to charge for tickets is obviously another huge difference.

The problem with cycling is that outside of TV rights, the revenue streams are very limited (basically advertising / jersey space). As a result, the UCI teams always seem to be on the verge of folding or merging despite the fact that (in relative terms) it's very cheap to field a team. This has probably always been the case. Part of me likes this arrangement: cycling hasn't yet been tainted with the huge money and hype inherent in something like the NFL or the EPL: it remains down-at-the-heels, a bit low rent (teams are run on a shoe-string budget) and accessible to any spectator for free. It's a uniquely "sport of the people" in a lot of ways, something I find hugely appealing. Only a very small number of top pros actually make any real money in this sport and I kind of like that. These guys remain blue collar athletes staying in cheap hotels and rewashing their jerseys to wear tomorrow. This is how cycling has always been.

Losing any of this is probably a minor concern, cycling will never generate the money that the NFL does. It would be nice to put the teams on a bit more solid financial ground by "spreading the wealth".
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Old 05-03-12, 10:13 AM
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The cost of running a World Tour team is $10 - 20 million a year. There is a limited number of corporations or really rich guys willing to foot this bill is limited.
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Old 05-03-12, 03:49 PM
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We're going to need stem-cams and a monopoly on roadside frites vendors.
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