The organizers of the 2015 UCI Road World Championships are on course to exceed their revenue expectations of more than $20M for the annual cycling event before the first tire has hit the road. The world championships take place in Richmond, Va., from Saturday until Sept. 27. “We are 98 percent to our goal with the idea that there’s a lot of revenue to be generated during the event itself,” said Lee Kallman, Richmond 2015’s VP of Marketing & Business Development. “We are thrilled with where we are at this point in the game.” The biggest revenue stream for the event is sponsorships. Organizers have been able to secure 26 official partners for the second UCI Road World Championships to be staged on U.S. soil -- the first one took place in Colorado Springs, Colo., in ’86. Considering cycling’s recent history, which has been plagued by doping scandals and the Lance Armstrong case, organizers knew a traditional sponsorship model that is very media centric would be a “tough sell,” Kallman said. Richmond 2015 took the approach of targeting the “real beneficiaries” of the event, he said. As a result, the sponsorship portfolio includes a large number of Viginia-based corporations and Fortune 500 companies. “Companies that we’ve partnered with aren’t necessarily the obvious ones when you think of big global sporting events,” Kallman said. “But what resonated with them was the opportunity for the region and what that means from them and their employees.” Companies like Anthem, CarMax and Genworth Financial have launched initiatives around the world championships or will activate on site. Organizers declined to provide specifics but said the sponsorships range from low-five figures to seven figures in value. VIP hospitality, private tents, travel program, merchandise and concessions are the other big revenue generators.
MORE THAN A BIKE RACE: While the event is free, organizers created VIP areas close to the start and finish line that require a ticket. Those tickets range from $150-$475, depending on the event and day. The rest of the course, which runs through downtown Richmond, is free to the public and features a FanFest area. “About 85-90 percent of the course is open to the public,” said Tim Miller, COO of Richmond 2015. He added that the organizers put up Jumbotrons along the course to guarantee fans do not miss any part of the action. There is also a mobile app, which allows spectators to watch a live feed of the race. The world championships are expected to draw more than 450,000 spectators over the course of the event. “We are feeling confident to have at least that number of spectators out. Hotels in the downtown area, in and around the finish line are by enlarge full,” Kallman said. The event will bring in an estimated $158M to the Commonwealth of Virginia, including $130M for the Greater Richmond region, organizers claim. In addition to the economic impact, Richmond will receive global exposure as roughly 300 million TV viewers will watch the event worldwide. Miller described the city as an “unbelievable” partner to work with. “From a public works and a public utility standpoint, the preparation that has gone into welcoming the world to this region for the event has been pretty remarkable,” he said. Organizers did not comment on the city’s expenditure in staging the event.
