What is the value of a sports team’s name? Take the Yankees, the Red Sox or the Dodgers. These famous American baseball teams have
changed owners over the years, and the Dodgers even moved across the
country. But their names have remained
constant. Fans have been buying their
name-branded merchandise for generations.
Advertisers pay a premium to be associated with those names. When such a team is for sale, a huge part of
the value is allocated to the bundle of intangible assets known as “goodwill” of
which the protected name is a major component.
Can you imagine if those teams changed their names every year or two
depending upon the changing landscape of advertising sponsors? The New York Wheaties become the New York Bud
Lites, and then the New York Nikes? The Dread Pirate Roberts understood this concept perfectly! And
what if the same companies advertise with (sponsor) multiple teams? You could end up with the Boston Geicos and
the New York Geicos. How confusing would
that be? Just think of the lost revenue
opportunities from not having a time-honored name? The Yankees brand by itself is a veritable “golden
goose.” Tossing that name aside in favor
of a new sponsor’s name would be financial folly – not only for the team, but
even for the sponsor. Association with the
Yankees name itself multiplies the effect of the advertiser’s exposure as a
team sponsor.
Yet the above scenario is exactly what happens with
professional cycling teams. Many of them
change names every year or two, as sponsors come and go. There are four Tour de France teams sponsored
by lottery systems, and three of them have used or still use the word “Lotto”
in their ever-changing names. It’s
almost impossible to keep them straight.
From one year to the next, it is very hard to tell which teams are new
and which ones are successors to teams from the previous year. For die-hard fans who follow all the teams
through all the season-long races, maybe this is not a problem. But for the millions of TDF-only fans – those
who only tune in each July for the “Grande Boucle,” the annual name scramble
makes it very hard to develop lasting team loyalties. Forget the fans. What is the impact on revenues? It seems to me that the teams and their advertising
sponsors are squandering a huge financial opportunity by failing to create and capitalize
on a powerful and enduring brand name.
That’s my soap box. For more information on the ever-evolving
names of the teams, see my prior posts at the following links: http://tourdefrancebypapaduck.blogspot.com/2012/06/pro-cycling-teams-in-general.html
and: http://tourdefrancebypapaduck.blogspot.com/2012/06/more-tidbits-on-teams.html
Now, here is the list of teams
invited to compete in this year=s Tour de France, along with a few notes:
17 UCI-Qualified Teams:
AG2R la Mondiale (ALM), France .
Astana Pro Team (AST), Kazakhstan .
BMC Racing Team (BMC), USA .
Etixx Quick Step (EQS), Belgium . Recently, Omega Pharma Quick Step (and lots
of other names – including “Lotto” – before that).
FDJ.fr (FDJ), France . Recent name sponsor BigMat is gone. FDJ is the French lottery.
IAM Cycling (IAM), Switzerland . New team since 2013, sponsor is a Swiss asset
management firm.
Lampre – Merida (LAM), Italy . Name has changed frequently over the years.
Lotto – Soudal (LTS), Belgium . Formerly Lotto-Belisol, and a long list of other
name changes.
Movistar Team (MOV), Spain .
Orica GreenEDGE (OGE), Australia . Fourth year in the TDF.
Team Cannondale Garmin (TCG),
USA . Merged from Garmin-Sharp (USA ) and Cannondale-Liquigas (Italy ). Both teams have a long and confusing history
of name changes.
Team Giant Alpecin (TGA), Germany . Formerly Dutch team Argos Shimano. Another old team with a long and confusing
history of name changes – and now a nationality change.
Team Katusha (KAT), Russia .
Team LottoNL Jumbo ( ? ) Netherlands . Formerly Belkin, Blanco (blank), Rabobank, Novell, WordPerfect, and
other names.
Team Sky (SKY), Great Britain .
Tinkoff – Saxo (TTS), Russia . Formerly Dutch team Saxo Bank, with other
names over the years.
Trek Factory Racing (TFR) USA . Descended from RadioShack (USA ) and Leopard Trek (Luxembourg ). Two old teams (USA & Lux) hot rivals,
with long list of former names; merged a couple of years ago with Luxembourg
registration. This year changed to USA
registration.
5 Wild-Card Teams:
Bora Argon 18 (BOA), Germany .
Cofidis Solutions Crédits
(COF), France . Slight name change.
MTN – Qhubeka (MTN), South Africa . New team since 2013.
Team Europcar (EUC),
France. An old team under various names;
has new name and new vision for development of French riders since 2011.
4 Teams that have disappeared:
Euskatel - Euskadi (EUS), Spain . Basque team with distinctive orange kits
(uniforms). They folded for lack of
funding, and declining results. Basque
riders with their wonderfully unpronounceable names can still be found on other
teams.
Liquigas - Cannondale (LIQ), Italy . This team has merged with the US team Garmin. (See list of 2015 TDF teams.)
Vacansoleil (VCD) Netherlands . Folded end 2013 when sponsor withdrew.
Saur - SoJaSun (SAU), France. Folded end 2013 when sponsor withdrew.
Jeff Louder (BMC) on the verge of winning Stage 4 (Park City) Tour of Utah 2010. BMC is one team that has kept its name and image consistent over recent years.
Langeveld, Clarke & Vachon, leading the breakaway at Stage 12 (Lyon) Tour de France 2014. They are riding for Garmin-Sharp, OricaGREENEDGE and Bretagne-Séché-Environment respectively. For 2015, Garmin merged with Cannondale and now goes by "Team Cannondale Garmin."
Ladagnous and Gallopin riding for two of the lottery sponsored teams - FDJ and Lotto-Belisol, Stage 12 (Lyon) Tour de France 2014.
The BMC team car following the peleton, Stage 12 (Lyon) Tour de France 2014.
The Trek team car following the peleton, Stage 12 (Lyon) Tour de France 2014.