trail wrote:
Jason N wrote:
Except that when you BUY the Yankees, you are essentially buying a company that has huge revenue streams and operates in a massive market where winning actually breeds more revenue. Those come in the form of ticket and merchandise sales, TV contracts, and licensing deals...among other things. As a potential owner, what businesses you currently are involved in, or how you made your money is of little relevance...you just need to have enough of it and a desire to make more by running a pro franchise. That's why when major pro teams go up for sale, there is usually a bidding war and the price gets driven up over the current estimated value of the franchise. The long term ROI is very easy to justify regardless of who you are.
When you SPONSOR a pro cycling team...you're putting up money with no direct revenue in return.
You're exactly right. Many big-time teams are largely vanity projects. Bahrain, Tinkoff, Astana, formerly BMC, Sky. Sure I'm missing some They all have/had huge super-wealthy personalities behind the sponsorship. The ROI is winning and reputation. Not answering to a board of directors about revenue.
But then there's Quickstep. Sponsored by a pretty marginal flooring company (marginal as in how large they are as an international enterprise, they may be pretty big in the Euro flooring industry, don't know), but with pretty a solid Belgian culture, and a very well defined objective: killin' it in the early season classics. I'm going to assume they have a pretty healthy budget, but probably nothing excessive. Bora-Hansgrohe is the same in Germany (objective: make Sagan awesome). Movistar in Spain of course.
Interestingly there's Lotto NL Jumbo and Lotto Soudal, sponsored by the Dutch and Belgian national lotteries, which in a way are comparable to the Bahrains and Astanas of the world: somewhat associated to the government but with enough revenue and at a long enough arms length that a slush fund targeted at a cycling team doesn't attract too much attention.
If we're comparing cycling teams to NFL franchises, there's a number of them that are like the Patriots or the Packers: solid management, most years good to very good. This is Sky, Movistar, and Quickstep, and maybe Lotto NL Jumbo now the Rabobank stink has mostly washed off. Then there's a bunch of them that may have good years depending on the quarterback they drafted (Bora with Sagan, Sunweb with Dumoulin, Bahrain with Nibali), but that go to shit if they don't have one (EF Drapac, Katusha, Astana). The rest is marginal, and can only hope for the occasional lucky strike.
Citizen of the world, former drunkard. Resident Traumatic Brain Injury advocate.