[elviento]

With Phonak pulling out, it seems most sponsors of pro teams end their sponsorships after a few years. Does that mean in the long term the sponsorship does not bring sponsors the expected publicity (hence indirect financial rewards)? Does anyone know the average/maximum tenure of any pro team sponsor?

Mapei was in the sport for over a decade partially due to it's big boss' passion in the sport and not necessarily for the indirect financial gain. There has already been a big debate on USPS' sponsorship of their team, even with Lance's success.

So would it be fair to say, pro team sponsorship by a company is generally not worth it?

 

[euro-trash]

There are of course a huge number of variables, including the markets of the given company, so a one size fits all answer isn't possible. But, after 5 years or so of sponsorship, there is a decrease in the marginal benefit of sponsorship, meaning those that are likely to become familair with Company X's products through cycling, have likely become aware of them within 5 years. The marginal cost of sponsorship however, remains the same or goes up. Once the marginal return on the investment isn't as high as other sponsorship opportunities, the sponsor is likely to leave cycling to go after a new marketing avenue.

Some companies have a cyclical sponsorship; Lampre comes to mind. They sponsor a team for a while, leave the role of title sponsor for a while, then return as title sponsor a few years later. Whether that corresponds to the roll-out of a new product or the entry into a new market is something I don't know.

 

[Dwayne Barry]

Does anyone know the average/maximum tenure of any pro team sponsor?
QUOTE]

I think Kelme holds the record for the longest sponsorship, maybe somewhere in the 15-20 year range. The team continues as Comunidad Valenciana now.

 

[Einstruzende]

Does Deutsche Telekom / TMobile count? Aren't they the same company?

Funny you mention this though, as I was noticing the same thing (only been following pro cycling for 3 years now).

Also, if iShares becomes Phonak's team name, it'll suck. Just doesn't have a good ring to it.

 

[surftel]

Telekom owns T-Mobile, same company

Kelme was the longest sponsorship by a company but they stopped a few years back when they went BK

I think the oldest team is Crédit Agricole, they used to be Gan, Z, and Puegeot...Puegeot was a sponsor back in the 60's

 

[MarkS]

So would it be fair to say, pro team sponsorship by a company is generally not worth it?

It depends on what you mean by worth. I did work for a company that had several sports sponsorships in the 1990s (all non-cycling). Although there was a marketing justification for each, it seemed to me that the major justification for all of them was that the CEO and his director-cronies liked to rub shoulders with the stars of the sports and have great seats for important matches/games. If you look at cycling sponsorships, there often seems to be a cycling fan sitting at the head of the company. The products of some companies seem to be a better fit with a cycling sponsorship than others. For example, the only benefit that I can see that the United States Postal Service ever derived from its sponsorship of the USPS team was that the phrase "Go Postal" became a little less sinister once Lance and the boys were riding up the cols of the Tour de France. But, if some cycling-crazed CEO wants to sponsor a team, I won't complain -- unless I am a shareholder.

 

[bas]

With Phonak pulling out, it seems most sponsors of pro teams end their sponsorships after a few years. Does that mean in the long term the sponsorship does not bring sponsors the expected publicity (hence indirect financial rewards)? Does anyone know the average/maximum tenure of any pro team sponsor?

Mapei was in the sport for over a decade partially due to it's big boss' passion in the sport and not necessarily for the indirect financial gain. There has already been a big debate on USPS' sponsorship of their team, even with Lance's success.

So would it be fair to say, pro team sponsorship by a company is generally not worth it?

Hell - what does Phonak even do? haha I think its hearing aids or hearing aid batteries?

 

[botto]

rabobank has been around for +/-10 years. like t-mobile/telekom and fracais des jeux they've been the same sponsor/team, just switching the product they're advertising.

after Kelme's 20+ year stint in the pro ranks, I'd hazard a guess that Lotto is now the current longest running marquee sponsor in the pro peleton.

 

[Dwayne Barry]

Does Deutsche Telekom / TMobile count? Aren't they the same company?

You have to distinguish between the company that owns the team and the primary sponsor. Those are two different entities. And even the owning company can change names but still have all the same principle people involved. I think some people consider LA Sheriff-Motorola-USPS-Discovery to be a continuous ownership but at some point the name changed (between Motorola and USPS I think).

 

[botto]

actually Motorola and Chevrolet-LA Sheriff's had nothing to do with USPS, or each other for that matter.

IIRC it goes Subaru-Montgomery/USPS/Discovery.

You have to distinguish between the company that owns the team and the primary sponsor. Those are two different entities. And even the owning company can change names but still have all the same principle people involved. I think some people consider LA Sheriff-Motorola-USPS-Discovery to be a continuous ownership but at some point the name changed (between Motorola and USPS I think).

 

[Dwayne Barry]

actually Motorola and Chevrolet-LA Sheriff's had nothing to do with USPS, or each other for that matter.

IIRC it goes Subaru-Montgomery/USPS/Discovery.

That's probably right. I wasn't sure about those connections at all.

 

[Einstruzende]

I dare someone come up with a "family tree" for the current 20 pro tour teams. I lack the knowledge else I would.

 

[surftel]

I work for Telekom and for many years much of our marketing and brand development was shaped around the team. It is a perfect vehicle as now the T-Mobile brand is in 6 European countries. You would be hard pressed to find someone in the company that thinks it is a waste of money, but you never know how long it will last as all advertising methods run their course

I was in a upper level meeting in Bonn one year, turned around, and there was one of Zabel's Milan San Remo trophies. I had to take a picture.

 

[cyclist_ca]

Phonak been a sponsor for more then a few years. They were a much smaller outfit before they went big time.

As an aside. My father wore a hearing aid. One day I was looking at it and noticed it was made by Phonak. I though "Cool!".