sign in sign up
<<
Home , 2001 Tour Down Under, 2010 Tour Down Under, 2011 Tour Down Under, 2011 UCI World Tour, Alberto Contador, Alessandro Petacchi

SPECIAL REPORT | CYCLING

Big business at La Grande Boucle

One of the most gripping races in the long history of the Tour de was also one of its most commercially successful.

By James Emmett

The build-up to the 98th edition of compelling Tours in recent history. The the , which took place ASO, and specifically Tour director Christian across three weeks and 3,450km this Prudhomme, are to be applauded for ensuring July, was dominated by the ongoing Alberto the stages were varied enough to keep the Cantador saga. The Spaniard, a three- race open right up to its final throes. As Tour winner and the defending champion such, spectators along the roads, although coming into this year’s event, is still awaiting impossible to accurately gauge since no a verdict from the Court of Arbitration for ticketing policy is possible in open road racing, Sport (CAS) on whether or not he is guilty seemed more than usually thronging, with the of having doped during the 2010 Tour. The stages in Lourdes and on the Alpe d’Huez in Spanish cycling federation have already cleared particular attracting seas of spectators. It is him, but the case has gone to CAS because the estimated that some 15 million people line the roads to watch the Tour each year. “There’s no other sport Television figures, a more reliable measurement of the Tour’s popularity, were that allows fans to be as also some of the best ever recorded. The close to the action and that European Broadcast Union (EBU) reported that figures were up across almost all its connection can really be of member nations. TV2 achieved a value to sponsors.” 41.33 per cent average share, Dutch public organisation charges between €100,000 and broadcaster NOS 45.65 per cent. TV2 €200,000 to towns for the right to play host attracted an average of 418,000 to the beginning or end of various stages. The UCI, world cycling’s governing body, and the viewers, registering a 54.8 per cent share, while Grand Depart, the start of the Tour, which is World Anti-Doping Agency (WADA) dispute in public service broadcaster EEN now attracting interest from potential hosts that decision. The time the whole affair has recorded an average market share of 66 per as far-flung as Qatar and Japan, commands taken, almost everyone in the sport seems to cent and reached a peak of 76.52 per cent on million-euro sums. ASO, which can offer agree, is ridiculous and Contador, having been the second weekend of the Tour. The race a suite of sports properties extending far allowed to compete by the race organisers is now broadcast in more than 180 countries beyond the Tour, also has an ever-expanding ASO since he is still technically innocent – at and rights fees go most of the way to making sponsorship portfolio, as the trend continues least until the CAS decision – was booed at up the €100 million it is thought to cost ASO for companies looking to associate themselves the rider presentation event that preceded the to run the event each year – particularly those with cycling, wary of having their brand start of the Tour. Thankfully, as the racing paid by the EBU and France Télévisions, both tarnished by doping scandals, viewing event got underway, the drama on the roads quickly of whom signed five-year renewals believed sponsorship as a safer option than team eclipsed that off it. to be worth a collective sum of almost €200 sponsorship. Qatar Airways and Le Coq 198 riders from 22 teams started the million this year. Sportif are the most recent additions to a Tour this year – all 18 top-tier ProTeams In fact, for ASO, part of the media corporate partnership list that includes LCL as well as four teams from the organisation that runs several other sports Banque, Vittel, Carrefour, Orange, PMU, lower continental division, given special events as well as owning French newspaper , Brandt, Ag2r Mondiale and Škoda, invitations by ASO. From a racing perspective, L’Equipe, the Tour is an immensely profitable whose -wide activation campaign, this was one of the most competitive and business. As well as broadcast rights fees, the including standout television adverts, was

8485 | SportsProMedia.com SportsPro Magazine | 8485

080-085_Tour of the France_v1.indd 84 08/08/2011 16:24:00 highly effective this year. Of course, VIK profits from the Tour are spread around its still the key measurement for teams looking elements to many of the deals are likely to other loss-making cycling events, and which for sponsors and there is very little on-site be substantial, given the race requires some resulted in several teams barring broadcast activation beyond the corporate caravan of 2,400 vehicles and the accommodation, travel journalists from their team buses this year. trucks and floats that drives along each route and sustenance requirements of the 4,500 In fact, cycling is unique in that sporting ahead of the riders. personnel involved over the three weeks, but endeavour, how the races play out, who According to Jared Melzer, sports the best estimates suggest that ASO is able to goes in a breakaway to ensure that television marketing and sponsorships manager for count on around €40 million in sponsorship cameras are on them for as long as possible ’s Sports revenue for the Tour annually. and when, is shaped as often by sentiment or Management organisation, cycling needs to do Sponsorship plays an even more crucial commercial necessity as by tactical racecraft. a lot more to drive value for its backers. “We role for the teams that compete at the Tour. Team Europcar, wanting to justify their new need to continually try to show more value, to The teams, whose annual budgets range from sponsor’s investment in them with some TV help sponsors with their strategy, help them around €7 million to €16 million, are almost time and racing on their home roads in the integrate. Because when a sponsorship runs entirely dependent on wealthy owners or Vendée region, had riders in almost every out, there’s always going to be that evaluation sponsorship. Merchandise sales account for single break in the first week of the Tour. part. I think people are getting better, within a small percentage of each team’s revenues And yet, despite ASO’s burgeoning the sponsorship industry, at putting less but prize money is insubstantial – at least portfolio and the fact that title sponsors emphasis on that media exposure figure, media compared to elite events in other sports commit sums of up to €12 million a year value. It’s going back to sales, or introducing – and they are not entitled to any share to the teams, cycling is still one of the most products or uniting employees. It’s what of broadcast fees – an issue that is raised unsophisticated sponsorship markets in matters to companies and then figuring out almost every year, with ASO arguing that sport. Estimated equivalent media value is ways to use cycling to help achieve these

8485 | SportsProMedia.com SportsPro Magazine | 8584

080-085_Tour of the France_v1.indd 85 08/08/2011 16:24:10 SPECIAL REPORT | CYCLING

goals. And that’s where sponsorship in cycling hasn’t really moved on yet. It’s very hospitality- driven. It’s all about CEO, CMO, CFOs getting together. It’s still very much an ego-buy sport. “Cycling is like a travelling circus or festival. Each day there are new start and finish cities, with many opportunities to connect and engage with fans at these locations, at the bus, on mountain tops. It’s a sport that you can activate globally, nationally, regionally and locally. There’s no other sport that allows fans to be as close to the action and that connection can really be of value to sponsors if they capitalise on it correctly. People wait outside team buses for hours, or stake out their spot on mountains hours before the race comes through, and no company is engaging them while they wait. It’s a captive audience.”

Team by team review:

BMC (USA)

Co-owned by former US Olympic cyclist Jim Ochowicz, BMC might be an American team in name, but it deals not in dollars but in Swiss francs. Andy Rihs, the richest man Team Europcar, through and , consistently delighted the French public in cycling having made hundreds of millions through hearing aids, is both a co-owner and, Despite being funded by Flavio Becca, in professional cycling and a man who has through his up-market Swiss bike brand BMC, whispers on the pro-cycling circuit suggest done more than most to combat doping in the a sponsor of the team. Pouring money into that Nygaard is under pressure to sign a sport, is partnered by Doug Ellis, a man who his plaything in search of the perfect squad, sponsor to ease the financial burden on his made his money in software engineering and last year he signed , the Australian owner. To that end, the team signed a deal whose deep pockets were crucial to the genesis who has come close to winning the Tour with Infront Ringier hoping to take advantage of the team. The association with GPS device several times. Evans’s victory this year has all of Swiss rider ’s popularity manufacturer Garmin has now been running but ensured that Rihs will keep his enthusiasm, in his home market. “Maybe there’s not so for four years, and, according to Melzer, it is and cash, in the sport for a little while yet. much of an immediate need for a sponsor,” one of the most successful sponsorships in the Melzer opines. “I’m not sure how hard professional peloton. “Garmin has definitely Team Leopard-Trek () they’ve worked. Certainly when you don’t gained value from that deal,” he says. “It fits have a sponsor, you’re not constrained to the very well. From the car side of things – during Former Sky and communications sponsor’s goals. So from Becca’s standpoint, the race or travelling to the race or to the hotel director Brian Nygaard’s slick start up he pretty much can direct that team as he likes. – every team has a GPS unit. It’s an easy story team were one of the favourites coming I’d like to see them get a sponsor though; I to tell. There are more and more people who into the tour, with both Schleck brothers, think that would be healthy for the sport.” have GPS devices on their bikes now too. I Luxembourg’s sporting darlings, expected would imagine that they would continue for to star. Both ended up on the final podium Team Garmin-Cervélo (USA) many years, based on the authentic product fit in Paris, but the top spot eluded them. and the success of the team.” Recovering from the tragedy that befell them Formed through a merger between the at the Giro d’Italia earlier in the year, where Garmin and Cervélo teams last year, Jonathan HTC-Highroad (USA) Belgian rider Wouter Weylandt was killed in Vaughters’ squad outdid themselves this year, a crash, the team had plenty of goodwill and capturing the best team award as well as four In Manxman , HTC- support from spectators both at home and stage wins and a sizeable spell in the yellow Highroad had possibly the most explosive along the roads. jersey. Vaughters, something of an innovator cyclist of all time. Consequently, and

8687 | SportsProMedia.com SportsPro Magazine | 8687

080-085_Tour of the France_v1.indd 86 08/08/2011 16:24:14 genuine commercial backing from Euskaltel, a Basque telecommunications company, although it is effectively a Basque national team – and is proud of the fact that it draws its riders solely from the region – and receives significant funding from the regional government. Such support means that, more than any other team, Euskaltel-Euskadi is not driven by results. Although the team’s ProTour licence is set to expire in 2012, as long as the sport remains popular in the region, the team is likely to stick around for some while yet.

Saxo Bank-Sungard (Denmark)

Faced with a rider exodus and a consequential sponsorship shortfall, team owner and his American chief executive Trey Greenwood worked wonders last year to secure the services of three- time Tour winner and a renewal with investment banking sponsor Saxo Bank. Contador, who won the Giro in May, struggled with fatigue and injury in this year’s Tour but ensured the support of an initially frosty French public with a heroic Team Europcar, through Thomas Voeckler and Pierre Rolland, consistently delighted the French public secured three more stage wins attack on stage 19. The team, as it is now, is unsurprisingly, the team was again remain in the hunt for the right built around Contador, and the Spaniard’s built around him this summer. He didn’t up until the closing stages. It was something lingering dispute with the UCI and WADA disappoint. Adding another five stage wins of a last hurrah for the team management over doping charges from last year means to the 15 he had collected on previous organisation, Belgian Cycling Company, Riis and Greenwood will have to use all their Tours, as well as, for the first time, the green which had enjoyed the support of its two considerable nous to weather what to be points jersey, Cavendish, who is also one co-sponsors since 2005. As of next year, an uncertain few months ahead. of the most engaging professional cyclists Lotto, the Belgian national lottery, will and has an ever-growing number of Twitter be going it alone, focusing on developing Sky Pro Cycling (Great Britain) followers, ensured that Bob Stapleton’s team young Belgian riders with a smaller budget remained the most prolific team on the rather than spending millions attempting Founded last year, the British team had a circuit. His victory in Paris, though, was a to keep star riders like Gilbert. As a result, breakthrough Tour in 2011. Although overall swansong for his team. HTC’s three-year deal Belgian Cycling Company have been rather contender ’ hopes were expires at the end of the season and, unable reluctantly forced into a merger with fellow dashed when he broke his collarbone in the to secure a sponsor to match the team’s Belgian team Quick Step, taking Omega first week, a stage win, a fine showing by the budget, Stapleton has announced that the Pharma, a Belgian pharmaceutical company team and a more relaxed approach to fan and sport’s most successful team will fold and its believed to be paying around €9 million a media interaction ensured that Sky’s grand riders are free to negotiate with other outfits. year for its sponsorship, with them. project, already being hailed as a success back at home as more and more Britons get on Omega Pharma-Lotto (Belgium) Euskaltel-Euskadi () their bikes, was being viewed in a far more positive light than last year in Europe. Sky’s The opening week of this year’s Tour was The team from the Basque country enjoyed UK£30 million sponsorship package expires tailor-made for Omega Pharma-Lotto and a successful Tour with lead rider Samuel in 2013. The widely-held assumption that the their Belgian champion . He Sanchez finishing sixth overall and taking deal will be renewed, however, has recently duly obliged, winning the second stage and the jersey. The been put under pressure by the News coming close frequently enough afterwards to team, which was founded in 1994, enjoys International scandal.

8687 | SportsProMedia.com SportsPro Magazine | 8786

080-085_Tour of the France_v1.indd 87 08/08/2011 16:24:29 SPECIAL REPORT | CYCLING

Total prize money won

Tour de France 2011

Team Prize money BMC Racing Team €493,990 Team Leopard-Trek €395,310 Team Europcar €147,130 Team Garmin-Cervelo €145,940 HTC-Highroad €104,940 Omega Pharma-Lotto €96,600 FDJ €90,660 Euskaltel-Euskadi €87,780 Saxo Bank-Sungard €72,290 Sky Pro Cycling €67,000 Mark Cavendish pulls on the green jersey in what would prove to be HTC-Highroad’s last Tour de France Movistar Team €46,660 Movistar Team (Spain) even those weren’t helped when their Ag2r La Mondiale €45,560 Romain Fellu had to retire from the race hurt. Le Credit En Ligne €41,740 Another team struck by tragedy and Johnny Hoogerland, however, one of the Vacansoleil-DCM €35,650 misfortune in the build up to the Tour, riders involved in a crash with a television as Xavier Tondo died in a freak domestic car, was a sensation, riding with panache Lampre-ISD €30,100 accident in May and Juan – extremely important within the cycling Saur- €26,930 suffered a horrific crash in the preparatory community – in the breakaways in almost Rabobank €24,290 , Movistar did well to have every stage, ensuring at least some television Jose Joaquin Rojas Gil push Cavendish all exposure for his sponsors. -Cannondale €22,360 the way for the green jersey. Founded as the Quick Step Cycling Team €19,940 Reynolds team in 1980, Spanish telecoms Lampre-ISD () Katusha Team €12,380 giant Telefonica, with its Movistar brand, Pro Team Astana €11,710 took over title sponsorship from Caisse One of two long-running Italian teams on the d’Epargne this year. ProTour, Lampre-ISD’s distinctive luminous Team Radioshack €10,540 pink jerseys were rarely seen during this year’s Ag2r La Mondiale (France) Tour as failed to recapture A total of €2,029,500 was awarded the form that saw him win the green jersey across the three-week race. BMC, Co-sponsored by insurance and pension fund last year. Lampre, an Italian pre-coated steel through Cadel Evans’s overall triumph, companies, Ag2r La Mondiale were the best manufacturer, has sponsored the team since took the €450,000 winner’s prize. Prize of the French ProTeams, although they were 1993 and the company’s support, given that it money barely accounts for a fraction of outdone by their compatriots at Europcar, is difficult to see just how much benefit beyond the teams’ collective annual budgets – who are a rung down on the UCI’s team hospitality opportunities the company derives, indeed, aside from at the Tour de France, ladder. Without ever being spectacular, the is seemingly unconditional. Although Lampre prize money rarely covers the costs a team achieved their main goal of a top ten don’t own the team, the company’s chief team incurs through competing – but the finish overall. executive, Mario Galbusera, is its president. figures do give a fairly accurate reflection This year ISD, a Ukrainian steel manufacturer, of the amount of exposure teams were Vacansoleil-DCM (Holland) has come onboard as a co-sponsor. able to gain for their sponsors, from which the overwhelming bulk of their A new ProTeam this year, Vacansoleil-DCM Rabobank Cycling Team (Holland) funding is drawn – through leading the are sponsored by a pan-European company various classifications of the race and specialising in upmarket camping holidays and What is effectively the Dutch national team taking stage wins. a Belgian farm supply company. The team had has competed in every Tour de France since modest ambitions coming into the tour and its foundation in 1984. Sponsored since 1996

8889 | SportsProMedia.com SportsPro Magazine | 8889

080-085_Tour of the France_v1.indd 88 08/08/2011 16:24:39 its cycling coverage. The 12th stage in Pau this year saw the team stay in the same hotel they stayed in last year when the Alberto Contador steak saga began.

Team Radioshack (USA)

A disastrous Tour for Radioshack, a squad formed around last year, saw the team end the race with only a fraction of the riders that started as injuries struck at almost every stage. Unsurprisingly, with all their team leaders crashing out, the team was unable to make any kind of impact. Nevertheless renewals signed with Radioshack – despite the American electronics retailer having no interests outside the USA – Nissan and Trek before the start of the Tour mean Cadel Evans toasts the Tour de France win that had eluded him for so long on the final ride to Paris the team will continue to operate long into the post-Armstrong era. by Dutch financial organisation Rabobank, It is not yet clear which sponsor, Omega which specialises in food and agribusiness Pharma or Quick Step, a laminate flooring Team Europcar (France), FDJ financing, the team’s orange outfits only manufacturer which has sponsored the team (France), Cofidis LeC redit En Ligne serve to emphasise its national philosophy. A since 2003, will take the more valuable first (France) and Saur-Sojasun (France) mediocre showing at this year’s Tour, where name in the new team’s title. team leader failed to live up Four ProContinental teams, one tier down to expectations, is unlikely to quell the bank’s Katusha Team (Russia) from the ProTeams, were invited by ASO enthusiasm for the team, despite its recent to take part in this year’s Tour. Of the four, push into various other sports sponsorships. The Russian team suffered the one and Team Europcar, which faced closure at only positive doping test in this year’s Tour, the end of last year when former sponsors Liquigas-Cannondale (Italy) with Alexsandr Kolobnev rather bizarrely BBox and Bouygous Telecom withdrew suspending himself from the team following their support, excelled. From the myriad Another long-running Italian team with a a positive test for a banned diuretic. The breakaways in the first few stages in the luminous outfit, Liquigas’s fluorescent green scandal is unlikely to dent the team’s grand Vendée, the team’s home region, to Pierre jerseys were a little less anonymous than ambitions. Run by the Russian Global Cycling Rolland’s stage win and young rider’s white Lampre’s pink ones as they at least made some Project, Katusha is one of the best-funded jersey triumph, to Thomas Voeckler’s sort of challenge for the overall prize through teams on the circuit, with Gazprom, Itera heroic defence of the yellow jersey – the . Liquigas, a provider of liquefied and Rostechnologii all contributing to its €15 Frenchman surprised everybody by holding gas in Italy, has sponsored the team since its million-plus annual budget. onto the race lead for a full ten stages – foundation in 1999. Europcar were the team of this year’s Tour. Pro Team Astana () Paris-based Europcar’s decision to rescue Quick Step Cycling Team (Belgium) the outfit at the beginning of the year was Having won the Tour in 2009 and 2010 with dependent on Voeckler’s commitment to A disappointing Tour for the Belgian team, Alberto Contador, Astana were brought stay with the team. Despite more lucrative which began with an unceremonious and high back down to earth this year – quite literally offers from elsewhere, he stayed, the team profile drugs raid on the team bus – nothing in the case of their team leader, Alexander was rescued and Europcar were paid back was found but the team was left feeling Vinokuorov, who had to retire from the race in spades. A nationwide media campaign “deeply hurt” – culminated in the news that having broken his femur on the ninth stage. in the days following the Tour illustrated a merger with fellow Belgian outfit Omega The team, another very well funded outfit, the sponsor’s satisfaction with their new Pharma had been agreed for next year. With is backed by a conglomerate of Kazakh property. ‘3,450km on a full tank of courage’ squads capped at 30 riders, athletes from both companies, and, seemingly, has a long- the adverts read, under an image of an teams will be facing an anxious few months running deal with which sees the exhausted but celebrating Rolland and as they attempt to tie down their futures. broadcaster promote the team in and around Voeckler that defined this year’s Tour.

8889 | SportsProMedia.com SportsPro Magazine | 8988

080-085_Tour of the France_v1.indd 89 08/08/2011 16:24:46