Cycling League Plans Equity Offer To The International Cycling Union
Two people familiar with the situation said that the organizers of a proposed 10-race series that Int'l Cycling Union President Pat McQuaid called a "breakaway" league "are working on a plan that would give the sport’s governing body an undisclosed stake," according to Alex Duff of BLOOMBERG. People, who declined to be identified because the discussions are private and ongoing said that the offer comes as sports marketing company Gifted Group Ltd. "tries to win UCI support for World Series Cycling after its first proposal was rejected." Gifted Group has raised €20M ($25.9M) from investors to start the series, and "wooed as many as 10 of the top 18 cycling teams with a promise they would split 64% of sales." According to a pitch to investors last year drawn up by London-based bank N.M. Rothschild & Sons Ltd., "investors would have received 26% of revenue, and Gifted Group 10%." One of the people said that Gifted Group has also "reached an agreement with a TV company to buy the broadcast rights to the series." Teams currently do not get a share of TV revenue. Garmin team Manager and President of the team's association Jonathan Vaughters said that the "cycling's competition model should be brought in line with sports that spread the winnings around" (BLOOMBERG, 10/1).