How much?

A recent article in L’Equipe looked into how much it costs to run a Pro-Tour team and how much it costs to organise a race. To illustrate the latter they used the recent Tour de L’Ain, a 2.1 UCI race whose budget of Euros 552,000 is financed as follows:-

  • 60% from the local communes, departments and regions
  • 40% from 60 private sponsors, for which the principal sponsors paid around Euros 35,000

So how was all this money spent?

  • Security: Euros 45,000 was spent on motor outriders, ambulances and police escorts. In addition, 200 police officers were provided free of charge by the region.
  • Transport for the 16 teams taking part: Euros 25,000 is the amount determined by the UCI’s sliding scale which depends on the teams’ status.
  • Accommodation for the 16 teams: Euros 75,000 for 5 day’s of half-board, in 3 starred hotels, for 12 people in each team which equates to 960 nights in total.
  • TV transmission on France 3 regional costs Euros 85,000
  • Administration costs for UCI, Anti-doping etc totals Euros 25,000
  • Prizes for the riders Euros 57,000
  • Organisational costs total Euros 120,000 split between accommodation for the organising committee, mounting and demounting the installations at the start and arrival towns.
  • Sundry costs of Euros 120,000 for the announcers, tour radio, public announce system, petrol for the cars, neutral assistance vehicles, marketing and communication etc etc

Of course, none of this would ever take place if it were not for a large and willing band of volunteers, usually from the local cycling clubs who are more than happy to lend a hand, probably in return for a couple of t-shirts. According to the organisers, they’ve managed to break even in each of the last 10 years. I know how much it costs to stage a local cyclosportive so, to my mind, these figures check out. If for any reason the organisers didn’t balance their books, then in all likelihood the principal sponsors would bail them out.

Show me the money

To illustrate how much it costs to run a team, L’Equipe had access to information from France’s only Pro-Tour team, Ag2R La Mondiale whose budget for 2011 was Euros 8.5 million, consistent with it’s ranking of around 14-15th out of the 18 teams.  This sum is provided by its principal sponsor AG2R, Kuoto who provides the bikes plus some financing, a further 12 sponsors who all provide some level of sponsoring and the team makes a further Euros 160,000 at the end of each year from the sale of bikes.

By far the biggest expense, as is the case for most sports’ teams, is salaries and associated costs which accounted for 68% of AG2R’s budget (Euros 5.78 milllion). This percentage is lower at AG2R than at other teams because they don’t have a roster of really big names, their principal riders being Nico Roche, John Gadret, Jean Christophe Peraud and Christophe Riblon. Two-thirds of this (Euros 3.853million) goes to the 27 riders and the remainder is spent on the 23 support staff. The range of gross monthly salaries varies from Euros 3,000 to Euros 35,000 per month making their highest paid rider (before image rights and bonuses) on Euros 420,000 pa. The salary of the 5th highest paid rider (ie it excludes those named above)  is Euros 180,000 pa. One should not forget that being a French team, with largely French riders, carries a heavy price tag in terms of social costs. Hence a lot of multi-national teams are based in countries such as Switzerland and Luxembourg where, unless the riders are based there, they’re generally paid gross and are responsible for making their own contributions.

After salary related costs, the next biggest expense relates to taking part in competitions. Costs here amount to some Euros 1.275 million, (15% of the budget) of which Euros 750,000 cover transport, around Euros 550,000 of which are covered by the race organisers, leaving the team to pick up Euros 200,000. The remainder is spent largely on training camps and food during the races.

General costs of some Euros 850,00 of which Euros 270,000 covers membership of UCI, French Federation, licences, AIGCP, participation in the bio-passport. The rest is spent on consultancy fees for physiotherapists amongst others, costs of running the office, rent. It costs Euros 450,000 to lease and run the vehicles and the remaining 1.7% covers sundry costs such as telephone bills.

Again, having spent some time looking at the costs of running a Continental pro-team, this summation rings very true. So, when you see figures of Euros 20 million being bandied around for the cost of BMC bear in mind that most of the difference between their budget and that of AG2R’s is salary related. Messrs Evans, Gilbert and Hushovd don’t come cheap.

In fact, the article in L’Equipe goes on to focus on salaries in cycling and how they compare to other sports. The average annual salaries of French riders are as follows:-

  • Pro-tour team Euros 122, 512
  • Continental pro team Euros 87,838
  • Continental team  Euros 22,243

Please note this refers only to French riders on French teams, so would exclude Sylvain Chavanel riding for Quickstep or Amael Moinard at BMC. The average salary for a French rider compares favourably with average salaries for rugby and basketball players, and is considerably higher than for those playing handball and volleyball in France. Wisely, the article excludes any comparison with the average salary of a football player in France who, if memory serves me correctly, earns in a week what a cyclist will earn in a month.

Finally, L’Equipe turns its attention to the 30 highest paid riders in the sport in 2011. It groups them in bands rather than giving exact figures and I would say that it’s a not unreasonable assessment. However, I think there may be a couple of errors in their figures and two notable omissions. Unsurprisingly, the man on the highest salary, which is estimated as between Euros 4-5 million pa, is Alberto “November can’t come quick enough” Contador. On around Euros 3 million pa are PhilGil and Cadel Evans. On just under Euros 2 million are Messrs Schleck Jr, Cancellara and Boonen. The first Frenchmen appear in the category “above Euros 500,000 but below Euros 1 million” and they are, unsurprisingly Messrs Chavanel, Voeckler and Fedrigo. However, with a large number of names in this list having had a stellar season and who are moving teams at the end of this season, it’ll be out of date all too soon.

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