The CEO of British bike model Issue, Rob Gitelis, has spoken out in response to the continuing WorldTour relegation battle.
Talking solely to Cyclingnews, Gitelis described the present system as ‘very half-baked’, agreeing with EF Training-EasyPost supervisor Jonathan Vaughters’ latest declare that it might spell the loss of life of a staff.
Because the 2022 season nears its finish, the approaching cut-off for the UCI’s three-year rating system is drawing ever nearer, and with it the prospect of two groups being relegated from the game’s prime tier. Whereas the UCI has prompt it’s contemplating a reform, proper now the system mandates that there might be solely 18 groups within the WorldTour in 2023, regardless of 20 groups vying for a license.
Gitelis’ firm, Issue Bikes, has been a sponsor of Israel-Premier Tech, one of many groups at present susceptible to being relegated from biking’s prime tier, since 2020. Their present contract finishes on the finish of this season.
Regardless of a lot of the main focus being round that 18th spot and a WorldTour license, Gitelis defined that for Issue – and for different sponsors too – the cut-off shouldn’t be whether or not a staff has a WorldTour license however an invite to the Tour de France.
“There’s relegation, and there is not being within the Tour de France,” Gitelis defined. “Sadly, the Tour de France is so essential to our trade.
“In virtually the entire research which can be carried out, the worth of the Tour de France is nearly 50% of the entire 12 months’s worth.”
In that respect, there’s a potential security internet for relegated groups, with the highest two non-WorldTour groups every year incomes computerized wildcard entries to the Grand Excursions, whereas the third-placed get invitations to WorldTour one-day races comparable to Paris-Roubaix.
“We have a look at it as ‘okay, you are not within the WorldTour, however you have gotten a type of two spots, which implies you may trip all around the world for races’. To me, that is enterprise as ordinary,” Gitelis mentioned.
“Nevertheless, should you get relegated and also you’re in that third spot, which is the one the place you get all of the one-day WorldTour invitations, however you are not invited to the Grand Excursions, then all bets are off as a result of the worth of the sponsorship then modifications fairly a bit.”
Because it stands, Israel-Premier Tech are in that third spot. Lotto Soudal – the opposite WorldTour staff at present within the relegation zone – and TotalEnergies are each above them within the 2022 rating, so they’d not be assured a spot on the Tour de France.
Who pays the payments?
Gitelis explains that for many groups, the bike sponsor would normally additionally symbolize the second largest money injection for a staff behind the title sponsor.
The distinction, he says, between an excellent ProTeam and one which’s not getting these wildcard invites may very well be everything of that money injection, a sum he places within the area of three-quarters of 1,000,000 Euros.
“You have a look at the distinction in prices between what was referred to as ProContinental [UCI ProTeam] and the WorldTour [UCI WorldTeam], it is an unlimited distinction,” he mentioned.
“We used to sponsor staff Roompot. That was a ProConti staff, they raced Paris-Roubaix and issues like that. We gave them no money, we gave them bikes, it was that cheap. I believe for an excellent ProTeam, perhaps it is about €750,000.”
Skilled biking is constructed upon the mannequin of sponsorship and, naturally, the perceived worth of a staff will affect the dimensions of sponsorship it could entice. This in flip has an influence on the staff’s monetary safety.
For a sponsor, a staff combating for relegation comes with its dangers. A foul season might consequence within the staff being dropped out of the WorldTour, or out of these Grand Tour invite spots, the place the sponsor’s publicity can be lowered. The chance of this taking place, and the ensuing drop in sponsorship worth have been it to occur, would undoubtedly have an effect on how a lot cash a model can be keen to speculate.
“[Return on investment] simply turns into a lot totally different [if a team is relegated]. It is the story of enterprise, in spite of everything. And with sponsorship, you are an ROI,” Gitelis mentioned.
“If you’re not on the Tour de France, even should you’re racing one-day races and issues like that, ROI is simply a lot totally different. So that you could not justify to your shareholders. Why are you paying WorldTour cash and never being within the WorldTour? It is so simple as that.”
Understandably, Gitelis was unwilling to reveal particulars of the negotiations between Issue and Israel-Premier Tech, however a results of the above is that it is possible that almost all sponsorship agreements will now embrace a clause permitting a sponsor to tug out within the occasion of relegation.
Demise of a staff
Returning to the purpose made by Vaughters, Gitelis defined how relegation might consequence within the loss of life of a staff.
“Relegation might be an excellent factor till it occurs to you,” he joked. “I believe there must be a system, I simply suppose the present system was very half-baked.
“We simply completed a world pandemic,” he continued, explaining the extenuating circumstances underneath which he believes the UCI ought to take into account a rethink of the plan.
“Who would have thought at first after I signed with Israel-Premier Tech, that we have been going to undergo a world pandemic?
“So I really feel like there positively must be some flexibility round at the very least the present scenario after which I believe it must be higher thought via, how the relegation system would work, as a result of it’s a little bit of a cliff.
“We have seen Jonathan Vaughters and Sylvan Adams have each mentioned that. When you’re within the WorldTour at present and also you get relegated, that would doubtlessly simply imply loss of life to the staff.
“As a result of the riders’ contracts are based mostly on them being on a WorldTour staff and sponsorship contracts are based mostly on a WorldTour staff. Riders might go away, sponsors might go away, after which if riders do not go away however sponsors do, these riders have contracts that also must be paid. So it comes again to the staff having to pay them and maybe the funding shouldn’t be there.
“I believe that the intentions of the UCI have been appropriate, however if you have a look at one thing like European soccer, there’s income sharing and you are not relegated to loss of life. And also you’re then incentivized to get again to that higher division.
“In European soccer, you may fall for 4 or 5 years, as a result of there are a number of layers you could fall via. In skilled biking, there’s being on the Tour de France or not, and should you’re not, you then’re already in a fairly determined scenario.”
