No more USPS team...official?

Discussion in 'Road Cycling' started by kjellquist, Apr 23, 2004.

  1. kjellquist

    kjellquist New Member

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    This was just written in the cycling news updates for the 4th stage of the Tour de Georgia;

    Unfortunately for US Postal-Berry Floor fans, this Tour de Georgia will be the first and last time that Lance will be racing here in a USPS jersey. A few months ago, there were rumours alluding to the US Postal Service pulling out its sponsorship at the end of the year, and this was confirmed by USPS spokesman Gerry McKiernan today. The Postal Service has decided to go "in another direction" with its marketing plan according to McKeirnan, after eight years of sponsorship.
    On the other hand, it's highly likely that a new sponsor will step in to fill the breach, and presenting sponsor Berry Floor has already indicated that it will increase its commitment. According to our sources in Berry Floor, the presence of the best known cyclist in the world meant that Berry Floor more than doubled its turnover in 2003, the first year of sponsorship of the USPS team.
     
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  2. WKrider

    WKrider New Member

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    I would imagine that alot of sponsors will be jumping at the chance to associate themselves with this team.
     
  3. Rudy

    Rudy New Member

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    I was kinda upset and disappointed when I heard the news. So was Lance. But one can look at this as a mixed blessing.

    I think now that it's pretty much a fore conclusion that Lance will win his 6th Tour. I think of it as, Lance being p***** o** and wants to come out and prove to them that he's still got it.
    Remember Indurain stop trying at the same age as Lance's, 32.
    So, just like a football or baseball player on the last year of his contract, he'll come out swinging. And he'll come back next year too :) woohoo!!!

    2nd thing is...I never understand why such a company like the postal service would sponsor a cycling team. I mean ... we all know that there's a post office around the corner right? we all pretty much take it for granted that they exist anyway.

    3rd...hopefully we can get a U.S. base sponsor, not a European one. This is also a sad point. The sport's just not as popular here as it is in Europe. I know getting sponsor from Europe is no problem but a U.S. base? I hope so.
    It is sad that such a company would actually terminate a cycling team that just won 5 Tour de France. And has a chance and getting a 6th. I mean how many chance can you say that about a team? It's sad that they lose so much faith in Lance and the team so easily.
    Makes me want to start using UPS or FedEX from now on GRRRRRRRRRRR
     
  4. patch70

    patch70 New Member

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    There is more to Lance winning a sixth tour than just seeming to be in better form than his rivals in April!
     
  5. limerickman

    limerickman Moderator

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    I think that USPS are perhaps a little premature in deciding to stop sponsoring this team.
    Apart from LA, they have other great riders like Hincapie, Landis,
    Ekimov, Beltran etc.

    I'm curious as to how they arrived at their decision.
    Has LA told them that he's going to retire at the end of this year -
    perhaps this may have influenced them to stop sponsoring this team ?
    Who knows.

    It is a pity that an American sponsor has decided to leave the sport, either way.
    It is good for the sport to have a broad range of sponsors from different geographic locations (it helps to publicise the sport outside of the traditional cycling nations).

    Looking at the photos of Georgia - it looks like the fans enjoyed getting a chance to see LA, Julich and the European stars like
    Cippo, Voigt, Vogels etc and to see a reasonable standard of racing live (although the Flandrian Classics are where the real action was last week).
     
  6. kjellquist

    kjellquist New Member

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    They dropped out because they are losing more and more money every year and could not justify the expense. In my opinion, they should drop out since our tax dollars bail them out every year and the sponsorship was not helping.


     
  7. asgelle

    asgelle New Member

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    Given that the purpose of the sponsorship was to improve their market share in the European international parcel business, in which USPS competes with Fed EX, UPS, etc.; how do you justify your statement that the sponsorship was not helping.
     
  8. kjellquist

    kjellquist New Member

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    because after many years of sponsorship they are still losing money year after year....believe me, they are/were under a lot of justified pressure to stop spending millions on a cycling team when they can't turn a profit.


     
  9. badger_biker

    badger_biker New Member

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    I think it is very unfortunate to have them drop the sponsorship but any losses are certainly not due to this relatively small expense in their budget.

    By the way not a dollar of anyone's tax money has been used by the USPS since the early 80's. They are totally funded by their products. :mad:
     
  10. donhix1

    donhix1 New Member

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    I know there has been alot of criticism of a government agency sponsoring a bike team. It is really hard to quantify how effective sponsoring a team is as an advertising tool. I am also not aware how much business USPS does in Europe. It seems to me that most of the shipping would be to Europe and not much back to the US using USPS.
    I just hope some one else picks up the team.
     
  11. Cryder

    Cryder New Member

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    Actually, they are remarkably capable of tracking press placements, and converting those into GRP (Gross Ratings Points) and then to a CPP (Cost Per Point) index. It was estimated by Advertising Age magazine that the USPS sponsorship earned an estimated $45 MILLION dollars in UNPAID advertising dollars PER YEAR. This has been an overwhelming success as sponsorships go, and Lance currently sits, while seperate from USPS, as one the most equitable sports endorsements you can make. His going rate as for endorsements ranges in the 10 to 20 million dollar range. The media picture as a whole when dealing with big budget projects is very exacting and detailed.

    Strategically, I am pleased to see USPS make this announcement before the Tour. If Lance were not able to win his sixt tour, and they pulled out - the reaction would be very negative indeed. It also leaves the team valuable time to find a sponsor while the entire team is in the global media spotlight. It would be my opinion that a European brand would do very well to sponsor an american team to make inroads into american culture. Lance is very mainstream with american culture, and therefore very equitable.

    As far as pressure on USPS goes, every publically traded company gets enormous pressure for every decision they make, add the burden of a sponsorship, and investors freak out. For a government agency, they did a remarkable job of fending off pressure and keeping the project alive for eight years. Truly incredible and totally impossible without an enormous success rate.

    Traditionally, think Motorola, once a big sponsor fades, other american brands see that sponsorship opportunity as somewhat tarnished... they tend to think of the teams in the context of the typicall mega sport "franchise", and want ulimited access and equity. Its a tough sport to land dollars for because there are sooo few guarantees.

    My .02

    - n -
     
  12. SevenCyclesRule

    SevenCyclesRule New Member

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    :mad: Government watch groups complaining about government waist are responsible for Postal pulling their sponsorship of LA and the team. These same morons would be the first to complain if there favorite sports team lost their ride. I will grant you that the money they are spending on sponsoring a cycling team might be better used somewhere else, but lets look at the this a different way.



    Where is the Postal Service going to spend that money they are paying the team?

    Are they going to lower stamp prices…NO :eek:
    Are they going to pay the postal works more, you know the letter carriers and such…NO:eek:
    So where are the millions of dollars going… “Up In Smoke”??????


    (Tommy Chong would be proud.) :cool:

    <<if you have to ask about this you are to young…LOL>>




    Government watch groups and the US Postal Service can bite my musette. I have had it with their whole “we know better the you attitude.” You don’t dump the Super Bowl champion team especially if they have one 5 in a row for you, postal never should have pulled out on LA.



    Lastly I would like any of you out there to feel free in joining my in boycotting the US Postal Service. I have not mailed anything since the announcement was made. If I can email someone I do not write, if I can’t pay your bill online or at a local office I do not use their product. And yes I will pay for the privilege of paying a bill online simply so I do not have to use the postal service. I even refuse to buy things online that will be shipped using the US Postal Service. I will not support them if they will not support Lance. I may never mail anything again. Join the fight!!!



    GO LANCE!!!!!!



    ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
    ::::: WEAR YELLOW :: LIVE STRONG :::::
    ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
     
  13. badger_biker

    badger_biker New Member

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    That seems a little idiotic and extreme. Why not give them some props for having the courage to sponsor a team when it had no history of winning and then providing the support money to form a team that was a true winning machine. They took a big chance on Lance and it paid off for both parties. If he weren't surrounded by The Blue Train, 6 consecutive victories would surely not have been the result.
     
  14. SevenCyclesRule

    SevenCyclesRule New Member

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    :mad: :mad: :mad: :mad: :mad:
    You are entitled to your opinion. I agree with you postal took a chance with Lance, but do you drop the Super Bowl MVP mid season. For what they were paying him the first year out you might say Lance was the one taking the chance. Besides Lance have been picked up by another team if postal did not step up. He is a winner and you can’t keep a winner down. Cutting a wining team loose during the season is idiotic too, don’t you think? Just because it is the way things have been done in the past does not make it right.
     
  15. gntlmn

    gntlmn New Member

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    Actually, USPS should be hailed as a hero. It stepped up and provided the opportunity for Lance to become the champion he has at a time when no other pro team on Earth would risk signing a recovering cancer patient. They supported him and allowed the team management the opportunity to build the best Tour team and to win (cross my fingers) six Tours in a row.

    From a business perspective, they are very wise. They have acquired the opportunity when no one else wanted it, and they are unloading the responsibility when they know it is still in high demand. That's why they found a replacement sponsor right away. There is no problem now about sponsors rejecting Lance for cancer worries. He has proven otherwise.
     
  16. jknotz

    jknotz New Member

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    The "Discovery Channel" has taken over sponsorship from USPS and the team will be intact next year, just look for new colors and jerseys !

    Great news !

    Jim :)
     
  17. jhuskey

    jhuskey Moderator

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    2nd thing is...I never understand why such a company like the postal service would sponsor a cycling team. I mean ... we all know that there's a post office around the corner right? we all pretty much take it for granted that they exist anyway.

    Wake up call! This is "our" government that leads the world in finding ways to spend the money I send in. Sponsoring the cycling team probably was making too much sense since they have been winners. This goes against US Government philosohpy. So dump them and sponsor the Missouri Surf Team.
     
  18. limerickman

    limerickman Moderator

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    Is USPS not a private company ?
     
  19. jhuskey

    jhuskey Moderator

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    No thats UPS. USPS= United States Postal Service created by US Congress in 1775. They operate as an independent agency of the Federal Government
     
  20. limerickman

    limerickman Moderator

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    Thanks - yep I always thought that USPS was a division of UPS.
    Thanks for this.
     
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