Team Garmin Fighting Economy By Selling Memberships To Club

Team Garmin-Slipstream, the cycling team that became the first to plan its own anti-doping tests, is bringing another unique business concept to the market by selling $995 memberships to a special team club. The effort is designed to help the team raise revenues in a depressed economy when sponsorship is hard to come by. Team Garmin Owner Doug Ellis said he hopes to attract 50 members and generate $50,000 in memberships. The team's budget is $12-15M a year. Members of the club receive an official team kit, merchandise, access to exclusive team events, race-day strategy from the team's director, and sponsor discounts and pro deals from cycling companies like Felt bicycles and Shimano shoes (Tripp Mickle, SportsBusiness Journal).

BUCKING THE TREND: The FINANCIAL TIMES' Robin Kwong reports cyclists in Asia are "fueling a renaissance for high-end bicycle makers by paying upwards of $1,000 for the latest models." The industry, which has "expanded rapidly over the past few years, is proving resilient to the economic downturn, thanks partly to the ability of bicycle makers to market increasingly expensive, sophisticated bikes to the masses." But while U.S.-based brands like Schwinn and Specialized "used to dominate the sector," the "most sought-after bikes are now largely made and marketed by Asian companies" such as Giant and Merida (FINANCIAL TIMES, 2/17).