The Economics of Professional Road Cycling (eBook)

Daniel Joseph Larson is a Lecturer at the University of Oklahoma in the Department of Health and Exercise Science. His research interests are largely contained within the economics of competitive cycling, ranging from professional competition to recreational participation. His past work experience includes periods of collegiate cycling team coaching, professional cycling team management, and managing several competitive cycling events. His past academic research topics also include cycling event management, the industrial organization of sport coaches, U.S. professional cyclist compensation, and cycling competition policies. Daam Van Reeth is an Associate Professor at the Catholic University of Louvain and program director of the business administration program at the University College Brussels (Belgium). His research interests relate to the economics of sport, with special focus on professional road cycling. Research topics he worked on include TV demand for the Tour de France, doping, gender balance in sports coverage of the Olympic Games, performance measurement and fantasy sports.

Foreword 6
Contents 9
1 Introduction 11
Abstract 11
References 16
2 The History of Professional Road Cycling 17
Abstract 17
1 Introduction 17
2 Economic Aspects of Professional Road Cycling: From Local Races to Global Sport Events 18
2.1 The Emergence of Professional Road Cycling (1890s--Mid-1950s) 18
2.2 The Development and Crises of Professional Road Cycling (Mid-1950s--Mid-1980s) 21
2.3 The Globalization of Professional Road Cycling Since the Mid-1980s 23
3 The Institutional Organization of Professional Road Cycling: The Historical Role of the International Cycling Union 26
3.1 The Organization of the Cycling Calendar 27
3.2 The Creation of a World Ranking System 30
3.3 The Setup of Race Rules and Anti-Doping Regulations 31
4 The Show of Bicycle Races: A Century of Grand Tours 33
4.1 National Passions: The Grand Tours' Background 34
4.2 Epic Races: Grand Tours' Difficulty 36
4.3 Epic Fights: Riders' Performance and Grand Tours' Competitiveness 38
5 Concluding Thought 40
References 40
3 The Organizational Structure of Professional Road Cycling 42
Abstract 42
1 Introduction 42
2 The Recent Evolution of the Organization of Professional Road Cycling 43
3 The Current Organizational Setting of Professional Road Cycling 46
3.1 General Structure 46
3.2 Governing Bodies 48
3.3 Race Organizers 50
3.4 Cycling Teams 52
3.5 Professional Cyclists 54
4 A Closer Look at the Organizational Structure of Professional Road Cycling 55
4.1 Theoretical Background 56
4.2 Some Peculiarities of Professional Road Cycling from an Organizational Point of View 57
4.3 Why Reforms Are so Difficult 58
4.4 Doping as an Organizational Problem 60
5 The Proposed 2017 UCI Reform 61
6 Conclusion 62
References 62
4 The Finances of Professional Cycling Teams 64
Abstract 64
1 Introduction 64
2 The Growth in Team Budgets 65
3 The Costs of Cycling Teams 70
3.1 Team Composition 70
3.2 A Closer Look at the Operating Expenses of Cycling Teams 70
3.3 Rider Salaries 75
4 The Revenue of Cycling Teams 80
4.1 Sponsorship Money 80
4.2 Participation Allowances and Prize Money 82
5 The Issue of TV Revenue Sharing 85
6 The Velon Initiative 88
7 Conclusion 89
References 90
5 Peculiarities of Sponsorship in Professional Road Cycling 92
Abstract 92
1 Introduction: On the Origins of Team Cycling Sponsorship 92
2 Business-to-Business Characteristics of Team Cycling Sponsorship 94
3 Duration and Termination of Team Cycling Sponsorship 97
4 Motives for Team Cycling Sponsorship 98
5 The Integration of Sponsorship into Marketing Communication 99
6 The Return of Team Cycling Sponsorship 102
7 Sponsorship of Cycling Races 105
References 106
6 TV Viewing of Road Cycling Races 108
Abstract 108
1 Introduction 108
2 The Successful Marriage of Road Cycling and Television 110
3 The Pitfalls of Measuring TV Audiences for Sport 113
4 TV Audiences for Cycling 117
4.1 The UCI's ``official'' TV Audiences 117
4.2 ``Real'' Observed TV Audiences for Cycling: The Case of the Tour de France 121
5 Research on TV Audiences for Cycling 125
6 The Future of Televised Cycling 130
References 135
7 Human Capital Development in Professional Cycling 138
Abstract 138
1 Introduction 138
2 Human Capital in Professional Cycling 139
2.1 Physical Components of Cycling Human Capital 140
2.2 Cognitive Components of Cyclists' Human Capital 141
3 Athletes 142
3.1 Career Progression and Specialization 142
3.2 Genetics/Physiological Characteristics (Nature) 144
3.3 Development (Nurture) 145
3.3.1 Physical Preparation 145
3.3.2 Competitive Experience 147
3.3.3 Formalized Development Programs 147
4 Coaches and Directors 149
4.1 Experience as a Competitor 149
4.2 Experience as a Coach/Director 150
4.3 Traditional Educational Attainment 151
4.4 Formal Certification and Continuing Education 151
5 Summary/Conclusions/the Future of Human Capital Research in Cycling 152
References 153
8 Agents in Professional Road Cycling 155
Abstract 155
1 Introduction 155
2 Team Sports Agency Literature 156
3 Historical Background of Riders' Agents 157
4 Riders' Agents Regulations: An Application to Cycling of Pre-existing Regulations 158
4.1 International (UCI) Regulations 158
4.1.1 UCI Regulation of Access to the Profession 159
4.1.2 Regulation of the Activity 160
4.2 French Regulations 161
4.2.1 FFC Regulation of Access to the Profession 161
4.2.2 Regulation of the Activity 162
4.3 Italian Regulations 162
4.4 Analysis of These Regulations 162
5 The Main Features of the Intermediation Market in Professional Cycling 164
5.1 Main Features of the Supply Side 164
5.2 Main Features of the Demand Side 166
5.3 Who Pays the Agent? 167
5.4 Rider Agent Remuneration? 167
5.5 Interesting Practices 168
6 Conclusion 169
References 170
9 Globalization in Professional Road Cycling 172
Abstract 172
1 Introduction 172
2 Globalization and the UCI 173
3 Globalization at the Rider Level 176
3.1 The Internationalization of the Peloton 176
3.2 Globalization in Professional Road Cycling Relative to Other Sports 181
3.3 Globalization in the Results of Top Cycling Competitions 182
4 Globalization of Cycling Teams 185
4.1 Geographical Dispersion of Cycling Teams 185
4.2 International Heterogeneity of Cycling Teams 189
4.3 From Import to Globalization 192
5 Globalization of the UCI Road Cycling Calendar 194
5.1 The Internationalization of the UCI Road Cycling Calendar 194
5.2 The Internationalization of the UCI WorldTour Calendar 197
5.3 The Problems of a Globalized Cycling Calendar 198
6 Summary of the Results 200
7 Conclusion and Policy Proposals 202
References 212
10 Strategic Behavior in Road Cycling Competitions 213
Abstract 213
1 Introduction 213
2 Why Is There Strategy, not just Brute Force, in Road Cycling Competitions? 214
2.1 Air Resistance, Drafting, and Crosswind 214
2.2 Cycling Races as Strategic Individual and Team Competitions 216
2.3 Game Theory in Road Cycling 218
3 Attack Timing Strategy: When to Attack? 219
3.1 Flat Stage Strategy: When Do You Attack to Win the Stage? 220
3.2 Mountain Stage Strategy: When Do You Attack to Win the Stage? 222
3.3 Stage Race Strategy: On Which Stage(s) Do You Attack to Win the Race? 223
4 Cooperation in a Breakaway and in the Peloton: When to ``Free Ride''? 226
4.1 The Breakaway's Dilemma: Why Cooperate in a Breakaway? 226
4.2 Possible Solutions to the Breakaway's Dilemma: How Can Certain Breakaways Succeed? 229
4.3 The Peloton's Dilemma: Why Cooperate in the Peloton? 231
5 Three-Player Interactions: With Whom to Ally? 232
6 Sprint Strategy: How to Sprint? 234
7 Conclusion 235
References 236
11 The Tour de France: A Success Story in Spite of Competitive Imbalance and Doping 238
Abstract 238
1 Introduction 238
2 A Successful Managerial and Economic Model 239
2.1 A Well-Designed and Well-Managed Sport Event 239
2.2 The Financing Model of the Tour de France 241
2.3 The Tour de France and Tournament Theory 243
3 Is Competitive Balance an Explanation for the Tour's Attractiveness? 245
3.1 Competitive Balance and Professional Road Cycling 246
3.2 How Imbalanced Is the Tour de France? 247
4 Doping Did not Hinder Tour de France Success, but Could It Be Fought Better? 251
4.1 Doping: An Unobservable Determinant of the Tour de France Outcome 252
4.2 How to Combat Doping More Efficiently? 253
5 Conclusion 256
References 259
12 Modeling Performances and Competitive Balance in Professional Road Cycling 261
Abstract 261
1 Introduction 262
2 The Difficulty of Modeling Performances and Competitive Balance in Road Cycling 263
2.1 Aggregated Team Performance Versus Individual Performance 263
2.2 The UCI WorldTour 264
2.3 Leader's Objectives 264
2.4 Performances by Support Riders 265
2.5 Strategic Interactions Between Opponents 266
2.6 Efficacy Versus Efficiency 266
3 Literature on Modeling Performances and Competitive Balance in Road Cycling 267
3.1 Modeling Performances in Cycling 267
3.2 Modeling Competitive Balance 269
3.2.1 Modeling Competitive Balance Between Riders 271
3.2.2 Modeling Competitive Balance Between Teams 272
4 An Innovative Measure: Competitive Intensity in Road Cycling 273
4.1 Competitive Intensity in Professional Team Sports 274
4.2 Competitive Intensity in Road Cycling 275
4.2.1 Competitive Intensity in Regular Stages 275
Criterion 1: Interest of the Breakaway in Relation to the General Classification 276
Criterion 2: Uncertainty for the Stage Victory 278
Criterion 3: Attacks 280
Calculation Overview 280
4.2.2 Competitive Intensity in Time Trials 280
4.3 Illustrations 282
4.3.1 Illustration in a Regular Stage 282
4.3.2 Illustration in a Time Trial 283
4.4 Implications 284
5 Conclusion 285
References 286
13 Doping in Cycling: Past and Present 288
Abstract 288
1 Introduction 288
2 From Amphetamines to Clenbuterol 289
2.1 Amphetamines 290
2.2 Anabolic Steroids 291
2.3 (Gluco)corticosteroids 292
2.4 Growth Hormones 293
2.5 Beta-2-Agonists 293
3 The Wonder Drug EPO 294
3.1 The Origin of Blood Doping 294
3.2 How EPO Found Its Way into Cycling 295
3.3 Second-, Third-, and Fourth-Generation EPO 297
4 Testing of Doping 298
4.1 Testing of EPO 298
4.2 Contador's 0.000000000005 299
4.3 Monitoring the Blood 300
4.4 Operaci00F3n Puerto and Operaci00F3n Galgo 302
4.5 Blood Passport 304
5 Determinants of Doping Use 306
5.1 The Difficult Choice to a Rider 306
5.2 The Omnipresence of Doctors 309
5.3 A Note on the Role of the UCI 310
6 Where Does Cycling Stand in 2015? 312
References 314
14 The Future of Professional Road Cycling 315
Abstract 315
1 Introduction 316
2 The Need for Change in Professional Road Cycling 317
2.1 Dominance of the Tour de France 317
2.2 Aging Audiences 318
2.3 Old-Fashioned and Badly Packaged Competition Formats 319
2.4 Tarnished Doping Image 320
2.5 Unstable Business Model 321
3 Past and Current Reform Plans 323
3.1 The Cycling 2020 Project (2007) 324
3.2 The World Series Cycling (2011) 325
3.3 The Avignon Project (2013) 326
3.4 The UCI Reform Plan (2013) 327
4 Fundamentals for a New Professional Road Cycling 330
4.1 A More Valuable Core Product 331
4.2 A Credible Sport that Better Respects Its Main Actors 334
4.3 A Stable Business Model 338
5 Conclusion 341
References 342