NEW UCI PRO TOUR cycling team GreenEdge has secured its first non-technical deal, signing a two-year agreement with Japanese car manufacturer Subaru.
On the basis of 2012 being the inaugural season on the UCI circuit for GreenEdge, and much of the contribution from Subaru likely to be value in kind in terms of providing vehicles for athlete and equipment transportation, Frontloaded estimates the cash plus VIK value of the deal at between $250,000 and $500,000 per year.
With technical sponsors Scott Sports and Santini in place, signed in March and April respectively, Australia-based GreenEdge is a title rights sponsor away from commercial equality with the rest of its UCI competitor teams.
The ultimate aim for GreenEdge is to drive Australian cycling on the world stage and to produce highly achieving Australian cyclists, much as Team Sky is doing for British cycling and riders. But the lack of commercial interest from Australian brands has proved disappointing for Green Edge.
A title rights deal can bring in up to $10m per year for a pro cycling team and this remains firmly on the agenda for GreenEdge for the 2012 season. It is looking far more likely however, that the team may well have to look again to the Asian markets to provide the financial backing it desires.