Team Cerevelo funding...?
 

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. After all
we are talking at least $10 million a year for a pro team.

Team Cerevelo funding...?
 

In article
,
" wrote:

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. After all
we are talking at least $10 million a year for a pro team.

I can't say for sure how big, but not only do they do reasonably well in
roadie circles, they're a huge force in the triathlete market. How big?

http://triathlon.competitor.com/2009...-2009-kona-bik
e-count-presented-by-triathlete-magazine_5170

Every year there's a fun bit of gear voyeurism called the "Ironman Bike
Count". Triathlete Magazine looks at the bike and equipment brands used.

Top five bikes in the count this year:

Bike Count (last year¹s totals in parentheses)
Cervelo * 462 (415)
Scott * 109 (103)
Specialized * 93 (66)
Felt * 92 (89)
Trek * 90 (103)

There's 1800 entrants, so about a quarter of all bikes at Ironman are
Cervelos.

If you assume the average wholesale value of a Cervelo is around $1000,
Then that's maybe a half a million dollars worth of Cervelos being sent
to Hawaii each year.

What I can't really say is how big the tri-training market is, and to
what extent Cervelo plays in that more price-sensitive territory.

Cervelo also isn't the only sponsor of Test Team, just the title
sponsor. Nonetheless, they must have a lot of skin in the game.

Also, $10M to run a pro team? Really? I count Sastre and Hushovd as the
big names on Cervelo:

http://www.cervelo.com/riders.aspx

Is their total wage bill likely to be $3M?

--
Ryan Cousineau http://www.wiredcola.com/
"In other newsgroups, they killfile trolls."
"In rec.bicycles.racing, we coach them."

Team Cerevelo funding...?
 

Ryan Cousineau wrote:
In article
,
" wrote:

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. After all
we are talking at least $10 million a year for a pro team.

I can't say for sure how big, but not only do they do reasonably well in
roadie circles, they're a huge force in the triathlete market. How big?

http://triathlon.competitor.com/2009...-2009-kona-bik
e-count-presented-by-triathlete-magazine_5170

Every year there's a fun bit of gear voyeurism called the "Ironman Bike
Count". Triathlete Magazine looks at the bike and equipment brands used.

Top five bikes in the count this year:

Bike Count (last year¹s totals in parentheses)
Cervelo * 462 (415)
Scott * 109 (103)
Specialized * 93 (66)
Felt * 92 (89)
Trek * 90 (103)

There's 1800 entrants, so about a quarter of all bikes at Ironman are
Cervelos.

If you assume the average wholesale value of a Cervelo is around $1000,
Then that's maybe a half a million dollars worth of Cervelos being sent
to Hawaii each year.

What I can't really say is how big the tri-training market is, and to
what extent Cervelo plays in that more price-sensitive territory.

Cervelo also isn't the only sponsor of Test Team, just the title
sponsor. Nonetheless, they must have a lot of skin in the game.

Also, $10M to run a pro team? Really? I count Sastre and Hushovd as the
big names on Cervelo:

http://www.cervelo.com/riders.aspx

Is their total wage bill likely to be $3M?


Also, their partners appear to be all of cycling related products, so
likely to be mainly in-kind support and probably a small amount of cash.

26 men riders, 14 women riders, 7 mechanics/drivers, five soigneurs,
three doctors, four DS, and four team management. Mechanics, soigneurs,
and doctors are probably hired on on an as needed basis.

That's a lot of paychecks.

Team Cerevelo funding...?
 

z wrote:
Ryan Cousineau wrote:
In article
,
" wrote:

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. After all
we are talking at least $10 million a year for a pro team.

I can't say for sure how big, but not only do they do reasonably well
in roadie circles, they're a huge force in the triathlete market. How
big?

http://triathlon.competitor.com/2009...-2009-kona-bik
e-count-presented-by-triathlete-magazine_5170

Every year there's a fun bit of gear voyeurism called the "Ironman
Bike Count". Triathlete Magazine looks at the bike and equipment
brands used.

Top five bikes in the count this year:

Bike Count (last year¹s totals in parentheses)
Cervelo * 462 (415)
Scott * 109 (103)
Specialized * 93 (66)
Felt * 92 (89)
Trek * 90 (103)

There's 1800 entrants, so about a quarter of all bikes at Ironman are
Cervelos.

If you assume the average wholesale value of a Cervelo is around
$1000, Then that's maybe a half a million dollars worth of Cervelos
being sent to Hawaii each year.
What I can't really say is how big the tri-training market is, and to
what extent Cervelo plays in that more price-sensitive territory.

Cervelo also isn't the only sponsor of Test Team, just the title
sponsor. Nonetheless, they must have a lot of skin in the game.

Also, $10M to run a pro team? Really? I count Sastre and Hushovd as
the big names on Cervelo:

http://www.cervelo.com/riders.aspx

Is their total wage bill likely to be $3M?


Also, their partners appear to be all of cycling related products, so
likely to be mainly in-kind support and probably a small amount of cash.

26 men riders, 14 women riders, 7 mechanics/drivers, five soigneurs,
three doctors, four DS, and four team management. Mechanics, soigneurs,
and doctors are probably hired on on an as needed basis.

That's a lot of paychecks.

Cervelo are probably seeding the team for several years with the hopes
of picking up a title sponsor soon to carry it long term.

Team Cerevelo funding...?
 

In article adead8e2-de1b-44d7-b590-
,
says...


Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team.
After all
we are talking at least $10 million a year for a pro team.
Cervelo, as a company, is heavily leveraged. They will be ok so long
as they keep moving every more product.

Team Cerevelo funding...?
 

On Dec 19, 12:11*am, Ronko wrote:
In article adead8e2-de1b-44d7-b590-
,
says...

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. *
After all
we are talking at least $10 million a year for a pro team.

Cervelo, as a company, is heavily leveraged. They will be ok so long
as they keep moving every more product.

Perhaps the owners of Cervelo are very wealthy. I can't believe they
have not tried to pick up a big name sponsor.

Team Cerevelo funding...?
 

In article
,
" wrote:

On Dec 19, 12:11*am, Ronko wrote:
In article adead8e2-de1b-44d7-b590-
,
says...

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. *
After all
we are talking at least $10 million a year for a pro team.

Cervelo, as a company, is heavily leveraged. They will be ok so long
as they keep moving every more product.

Perhaps the owners of Cervelo are very wealthy. I can't believe they
have not tried to pick up a big name sponsor.

Doubtful. The company history is on their site, both the founders (and
still co-owners) were engineers, and all they've done since '95 is sell
Cervelos.

http://www.cervelo.com/content.aspx?t=Company&i=History

However, they do quite plausibly claim to be the biggest maker of tt and
tri bikes on the planet, and since that means capturing the high end of
a high-end market, they're probably viable enough to run their own road
team, especially if it gives them more push into road bikes, a market
where they have room to grow.

--
Ryan Cousineau http://www.wiredcola.com/
"In other newsgroups, they killfile trolls."
"In rec.bicycles.racing, we coach them."

Team Cerevelo funding...?
 

On Dec 19, 12:05*pm, Ryan Cousineau wrote:
In article
,



" wrote:
On Dec 19, 12:11*am, Ronko wrote:
In article adead8e2-de1b-44d7-b590-
,
says...

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. *
After all
we are talking at least $10 million a year for a pro team.

Cervelo, as a company, is heavily leveraged. They will be ok so long
as they keep moving every more product.

Perhaps the owners of Cervelo are very wealthy. I can't believe they
have not tried to pick up a big name sponsor.

Doubtful. The company history is on their site, both the founders (and
still co-owners) were engineers, and all they've done since '95 is sell
Cervelos.

http://www.cervelo.com/content.aspx?t=Company&i=History

However, they do quite plausibly claim to be the biggest maker of tt and
tri bikes on the planet, and since that means capturing the high end of
a high-end market, they're probably viable enough to run their own road
team, especially if it gives them more push into road bikes, a market
where they have room to grow.

--
Ryan Cousineau /
"In other newsgroups, they killfile trolls."
"In rec.bicycles.racing, we coach them."

i saw a big fat dude on a bike path the other day riding a sweet
cervelo and wearing some obscure pro kit that he probably got from
WCP ... if cervelo as a company has penetrated this demographic, then
they're probably doing well financially. look what it did for trek.

Team Cerevelo funding...?
 

On Dec 19, 3:11*am, Ronko wrote:
In article adead8e2-de1b-44d7-b590-
,
says...

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. *
After all
we are talking at least $10 million a year for a pro team.

Cervelo, as a company, is heavily leveraged. They will be ok so long
as they keep moving every more product.

let's hope they haven't leveraged too much; usually things start to
slip then you get a lot of crappy product then the company is gone.
But I recall cervelo saying they didn't like their riders "being told
something else when (they) left the room"- refering to the split from
riis and doping issues; they make a point of being in the race and
being clean as opposed to winning the race and getting caught. So they
wanted to be the primary sponsor of their own team for that reason.
Let's hope it works out for them.

Team Cerevelo funding...?
 

On Dec 19, 12:11*am, Ronko wrote:
In article adead8e2-de1b-44d7-b590-
,
says...

Just how big is Cervelo bike company...? It's hard to imagine a
smaller bike company having enough money to sponsor a team. *
After all
we are talking at least $10 million a year for a pro team.

Cervelo, as a company, is heavily leveraged. They will be ok so long
as they keep moving every more product.

How do you know they are heavily leveraged? You have managed to make
me curious :)

(I'm not disagreeing with you, I am just curious. I went to their
website to try to find out for myself but didn't see any financial
statements listed, and as a privately owned company they aren't
required to provide that sort of info. I don't normally pay attention
to this sort of stuff, so if I'm missing something obvious, I'm sorry)
heather