Date of Award
As the field of economics has spread in scope, it is now used in almost every field of study. Individuals, organizations, and professionals all use economics to evaluate their practices and decisions. One area that economics has expanded to study is the world of sports. One sports industry, however, has not seen much attention, and that is the professional cycling industry. Professional cycling, like all sports, is a calculated science. Every decision is precise, thought out, and calculated repeatedly. Winning does not come without meticulous planning and precision.
Professional cycling teams’ financial structure causes them to implement strategies not seen in other sports and business markets. While most firms have the goal of maximizing their profit, professional cycling teams do not because they focus on providing the service of advertising. The cycling industry is almost entirely funded through sponsors and therefore cycling teams have an unusual maximization function where they are instead looking to maximize sponsorship dollars. This paper will examine the framework of the cycling industry and demonstrate how that framework leads teams into three main strategies for sponsor dollar maximization.
Shearer, Grant, "Is Winning a Necessity for Financial Success in the Cycling Industry" (2019). Dickinson College Honors Theses. Paper 322.