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Is this a Good offer from a new sponsor?
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| stealingsilver |
Posted on 21-03-2013 15:54
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Free Agent
Posts: 113
Joined: 08-02-2013
PCM$: 200.00
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Hi there,
I am managing the Continental team "IG Sigma Sport" and at the end of the season I will move up to pro continental. I get around £150,000 from IG and around 100,000 from Sigma Sport.
The Sigma Sport contract is running out and I have sent out a scout to find a new sponsor. Wiggle have come in with an offer of £450,000 as a secondary Sponsor for 4 years. Is this a good offer? Normally I would just accept it but 4 years is a long time and it would worry me that when I become a World Tour team I would still be committed to them.
Also I have another question. I have asked to delay the decision. How long does this delay it for? |
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| fcancellara |
Posted on 21-03-2013 15:56
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Grand Tour Specialist
Posts: 4813
Joined: 18-08-2011
PCM$: 200.00
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As a secondary sponsor I guess that'd be fine, just try to find a big primary sponsor 
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| Jesleyh |
Posted on 21-03-2013 16:00
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World Champion
Posts: 14744
Joined: 21-07-2012
PCM$: 200.00
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stealingsilver wrote:
Hi there,
I am managing the Continental team "IG Sigma Sport" and at the end of the season I will move up to pro continental. I get around £150,000 from IG and around 100,000 from Sigma Sport.
The Sigma Sport contract is running out and I have sent out a scout to find a new sponsor. Wiggle have come in with an offer of £450,000 as a secondary Sponsor for 4 years. Is this a good offer? Normally I would just accept it but 4 years is a long time and it would worry me that when I become a World Tour team I would still be committed to them.
Also I have another question. I have asked to delay the decision. How long does this delay it for?
Can´t you negotiate for a smaller contract(3 years, but a bit lower wage?)
But 450000 isn´t that bad, especially for the first two years. If you don't want 4 years, then take 3 years.
Not sure about the delaying question though...
Feyenoord(football) and Kelderman fanboy
PCMdaily Awards: 12x nomination, 9x runner-up, 0x win.
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| TheManxMissile |
Posted on 21-03-2013 16:08
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Tour de France Champion
Posts: 17833
Joined: 12-05-2012
PCM$: 0.00
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This is perfect for me to respond to
I am currently paying with Node4, similar size UK Conti team to IG
at the end of the season Giordana left and Rexona came in
My entire budget is 540,000 (45,000 per month). The whole teams is only 36,500 per month. And is happily pushing for PCT. For a better idea check out my story The Hammarlings.
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| yoejo |
Posted on 22-03-2013 10:47
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Neo-Pro
Posts: 275
Joined: 21-09-2007
PCM$: 200.00
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I also have some questions. I am in year 2015 with Geox-Tinkoff bank and now I get 380 000/month in sponsor revenues. It´s pretty good but this year the sponsor contracts expires. is it usually better to do launch sponsor search (I guess it costs money) or to extend the contracts. What actually wighs in in how much money I´ll be offered from my current sponsors? How happy they are or how much goals I have achieved. they usually are pretty excited anyway since I win so much.
so, launch sponsor search (does it costs money every time I launch it?) or extend with the happy sonsors? |
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| TheManxMissile |
Posted on 22-03-2013 11:41
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Tour de France Champion
Posts: 17833
Joined: 12-05-2012
PCM$: 0.00
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Searching for new sponsors costs a certain per month, but its quite nice to have a choice of sponsors available
Renewing can only happen in July or later, so its doesn't hurt to run some searches earlier in the season.
Happieness and goals might have some impact on renewal but not masses.
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| Ad Bot |
Posted on 06-12-2025 23:47
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Bot Agent
Posts: Countless
Joined: 23.11.09
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| stealingsilver |
Posted on 22-03-2013 11:43
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Free Agent
Posts: 113
Joined: 08-02-2013
PCM$: 200.00
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Thanks guys,
It ended up that I actually took the Wiggle offer as there was a bug when I delayed my decision. When they came back, which was around 2 weeks later they only offered 1 year which is ideal for me. |
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| LLDS |
Posted on 22-03-2013 11:53
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Domestique
Posts: 699
Joined: 10-02-2013
PCM$: 400.00
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yoejo wrote:
I also have some questions. I am in year 2015 with Geox-Tinkoff bank and now I get 380 000/month in sponsor revenues. It´s pretty good but this year the sponsor contracts expires. is it usually better to do launch sponsor search (I guess it costs money) or to extend the contracts. What actually wighs in in how much money I´ll be offered from my current sponsors? How happy they are or how much goals I have achieved. they usually are pretty excited anyway since I win so much.
so, launch sponsor search (does it costs money every time I launch it?) or extend with the happy sonsors?
My advice is to keep your sponsors happy, but to search for alternative until July. You can start the search in January.
I was in the same situation, I searched for half a year for sponsors, but in July both of my sponsors were happy so they offered me another 3 years of contract and more money  . |
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| lluuiiggii |
Posted on 22-03-2013 18:37
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Grand Tour Champion
Posts: 8425
Joined: 30-07-2010
PCM$: 200.00
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yoejo wrote:
I also have some questions. I am in year 2015 with Geox-Tinkoff bank and now I get 380 000/month in sponsor revenues. It´s pretty good but this year the sponsor contracts expires. is it usually better to do launch sponsor search (I guess it costs money) or to extend the contracts. What actually wighs in in how much money I´ll be offered from my current sponsors? How happy they are or how much goals I have achieved. they usually are pretty excited anyway since I win so much.
Happiness does matter for how much money the sponsors are willing to give you (or even if they're willing to give you any money at all, if the happiness is quite low they might not even want to negotiate). But afaik goals have little (or perhaps none) effect on sponsor happiness 
Edited by lluuiiggii on 22-03-2013 18:37
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| yoejo |
Posted on 22-03-2013 18:52
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Neo-Pro
Posts: 275
Joined: 21-09-2007
PCM$: 200.00
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Happiness does matter for how much money the sponsors are willing to give you (or even if they're willing to give you any money at all, if the happiness is quite low they might not even want to negotiate). But afaik goals have little (or perhaps none) effect on sponsor happiness
thx for that answer. it makes sense. I´m asking since previous editions of PCM the sponsor section has been a little bit so and so and not really worked out well, so that´s why I´m wondering.
what does the sponsor search cost per month? sorry for asking, but I want to make the right decision right away since I´m in an awesome career right now |
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| Geordie1892 |
Posted on 26-05-2013 15:35
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Junior Rider
Posts: 28
Joined: 21-09-2012
PCM$: 200.00
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yoejo wrote:
Happiness does matter for how much money the sponsors are willing to give you (or even if they're willing to give you any money at all, if the happiness is quite low they might not even want to negotiate). But afaik goals have little (or perhaps none) effect on sponsor happiness
thx for that answer. it makes sense. I´m asking since previous editions of PCM the sponsor section has been a little bit so and so and not really worked out well, so that´s why I´m wondering.
what does the sponsor search cost per month? sorry for asking, but I want to make the right decision right away since I´m in an awesome career right now
It depends on what level of agent you appoint to do a search. If you are regularly winning on UCI and competing in Grand Tours then its likely you will want to appoint an International agent as minimum but most likely a World focused agent.
Each international agent costs 6,000 E to launch and 3,000 E per week (not this is per agent per week!)
I believe (but am not 100% sure) that a world agent is double that of the international agent but this is where the biggest offers come generally come from. In my experience they don't look favorably on co-sponsor deals.
Also, I generally start a search in March/April to give the agents time but alos to keep costs low. If you want to negotiate with sponsors you have to pay the agent every week until the deal is signed
Hope this helps |
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| Geordie1892 |
Posted on 26-05-2013 15:39
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Junior Rider
Posts: 28
Joined: 21-09-2012
PCM$: 200.00
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I also have a couple of queries. Wondering if anyone has any similar experience that they can use to answer..
I have 2 sponsors currently:
Main Sponsor Due to expire end of current year
Co-Sponsor Due to expire following year
I am hoping to agree new sponsors for each.
Q1. Can I appoint a main sponsor who rules out co-sponsoring ? They seem to want to negotiate with me but will this cancel the remaining contract with the co-sponsor or would that still be allowed to run its course ?
Q2. Am I able to sign a 1 year main sponsor term and then renew both contracts (or appoint both new sponsors) at the end of the following year when both would be set to expire ?
Hope you can help |
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| eple |
Posted on 27-05-2013 21:24
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Stagiare
Posts: 173
Joined: 17-08-2009
PCM$: 200.00
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Q1: I'm wondering that too. Anyone know? |
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| Lachi |
Posted on 27-05-2013 23:11
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Grand Tour Champion
Posts: 8360
Joined: 29-06-2007
PCM$: 200.00
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Q1: Some main sponsors don't accept co-sponsors but I cannot tell if signing such a sponsor would cancel an existing co-sponsoring contract.
But in the end it isn't important because your goal should be to get the same or more sponsoring income, no matter if from one sponsor or two sponsors.
Q2: I never tried in PCM12 but in PCM11 you couldn't search for main sponsor and co-sponsor in the same year, so better don't risk it.
Edited by Lachi on 27-05-2013 23:12
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| eple |
Posted on 28-05-2013 00:00
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Stagiare
Posts: 173
Joined: 17-08-2009
PCM$: 200.00
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Thanks, Lachi.
The problem is the new sponsor is offering more than the expiring one, but less then the total of my co-sponsors. So if it cancels the co-sponsor out I'm down €900k pr year, but if it doesn't I'm up €900k. Sponsor confidence is high though, so I think maybe I'll just wait and see, or fingers crossed the one sponsor that was ok with being co-sponsor comes back with a decent offer.
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| Lachi |
Posted on 28-05-2013 12:15
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Grand Tour Champion
Posts: 8360
Joined: 29-06-2007
PCM$: 200.00
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Even if the co-sponsor would not be canceled immediately you would lose him when the co-sponsoring contract runs out. So it is only a matter of time when you run out of money, right? |
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| eple |
Posted on 28-05-2013 19:07
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Stagiare
Posts: 173
Joined: 17-08-2009
PCM$: 200.00
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Well yes, unless I can sign it for a short period. |
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| Geordie1892 |
Posted on 04-06-2013 14:52
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Junior Rider
Posts: 28
Joined: 21-09-2012
PCM$: 200.00
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Thanks Lachi
I have managed to appoint a new main sponsor on a 1 year term. Both up for renewal in a couple of months (i.e. scenario of Q2)
Will post what the outcome is here |
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