The Finances of Professional Cycling Teams

Daam Reeth ()
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Daam Reeth: Katholieke Universiteit Leuven, Campus Brussels and Campus Kortrijk

Chapter Chapter 3 in The Economics of Professional Road Cycling, 2022, pp 35-67 from Springer

Abstract: Abstract Although cycling races are usually won on an individual basis, professional road cycling is a sport practiced in teams. This chapter focuses on cycling team’s finances which are in at least three ways very different from the finances of teams in most other sports. First, although cycling teams operate like small businesses, according to the rules of the International Cycling Union, they are not run for profit. As a result, team budgets or team revenue should, in principle, equal team expenses. Second, cycling teams do not have a home stadium or arena. The lack of a home venue, and thus the impossibility of hosting their own cycling races, prevents cycling teams from collecting ticketing revenue, an important source of revenue in most team sports. Third, while revenue from broadcasting rights is a growing source of income in many other sports, it is currently not available to professional cycling teams. As a result, as of 2022, cycling teams are still almost exclusively financed by sponsorship money. In this chapter, we show how team budgets have grown substantially in the past 30 years, and we discuss in detail the different costs and the (potential) sources of revenue to the teams. We take a look at the finances of women’s cycling teams as well.

Keywords: Team finances; Team budgets; Prize money; Rider salaries; Team expenses (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:semchp:978-3-031-11258-4_3

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DOI: 10.1007/978-3-031-11258-4_3

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