Tour de Georgia back in 2010?
Posted on 17. Nov, 2008 in Bike Racing, Sponsors, Sports Business
Like a can of peaches [cringe], the Tour de Georgia is on the shelf. It’s been the best in North America from a pure racing standpoint, although they have had financial trouble in the past. The dismal economy obviously isn’t helping their cause, but I don’t think that’s really the problem. It’s that bike races always cost a lot to put on, but the value for sponsors depends on where the event is held. Unfortunately, the Tour de Georgia is probably too big and expensive to stage in small towns like Dahlonega, Georgia (Pop. 3,638).
Without a significant TV or web audience, the best thing a bike race like the Tour de Georgia can monetize is feet on the ground. A lot of people would say media coverage too, but I think the value there is more about marketing the event itself than delivering direct benefits to the sponsors. In any case, small towns in Georgia can’t send a lot of foot traffic through the expo and have little value for corporate hospitality. Atlanta is a good location for the final stage, but apparently not lucrative enough to offset spending $150,000 a night on hotels in places like Tybee Island.
Sure, the Tour of California costs a lot more to organize and sponsor. But look at the large and bike-loving Nielsen DMA’s it will run through in 2009: #2 (LA), #6 (Bay Area, twice), #20 (Sacramento), #28 (San Diego). This year’s TdG, meanwhile had one day in #8 (Atlanta) but the next biggest market was #96 (Savannah).
I think the lesson is that you need to tailor your bike race to the to revenue potential of your local market. Or, if you have your heart set on running a UCI 2.HC stage race, you need to find a really big market.
[Note: The Tour of Missouri seems to be doing pretty well, although it relies on state government money that Georgia isn't willing to pony up.]
(image: Ben Jacques-Maynes on Brasstown Bald, 2006 Tour de Georgia)
Well said
I remember this article. Seems like sadly not much has changed.
On another note, I once happened across Gov. Perdue decked out in in a NASCAR racing suit (a lá George W on an aircraft carrier) in the parking lot of Turner field. He was filming a commercial lobbying to bring the NASCAR Hall of Fame to Georgia.
Sadly, for better or for worse that is our ‘local market’ and an effort the GA state gov is willing to pony $$$ up for.
I imagine that the NASCAR HoF would bring a lot more economic activity to the state than the bike race, although I have mixed feelings about taxpayer-funded sports in general. (and about whether NASCAR is a sport)