Is Chad Reed really spending millions?

Drtbykr
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Drtbykr
Edited Date/Time 1/22/2014 7:58pm
I can't imagine how much it would cost to run a top-notch race team, even with I suspect free bikes and factory parts.

Never a big fan, but I do have his autograph, he seemed nice enough. (can't be a JS7 AND Reed fan.)

Anyway, good on him...........I'm still in shock.
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Crush
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Crush 1/20/2014 6:55pm
1/20/2014 6:55pm
This year with Discount Tyre on? I hope not.

The last few years, easy. Times over.

Tracks, trainers, rig, bikes, flights for the whole crew... There's more than just entry fees and a bike.
crashnburn11 1/20/2014 7:16pm
1/20/2014 7:16pm
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his own team, so he is losing millions just from the opportunity cost

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40Plus_922mx
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40Plus_922mx 1/20/2014 7:17pm
1/20/2014 7:17pm
A bare bones team with 2 riders semi bikes part salaries travel exp etc. Is 500k. So Reeds team would probably start at 1 mill and go from there.
Cashmore
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Cashmore 1/20/2014 7:22pm
1/20/2014 7:22pm
crashnburn11 wrote:
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his...
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his own team, so he is losing millions just from the opportunity cost
So he turned down a ride that would have been nothing but coin in his pocket to go blow his own personal money and get nothing in return? Nope.... sorry.
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Motodude 1/20/2014 7:25pm
1/20/2014 7:25pm
He's investing in his brand..its working so far. Look at the standout professional presentation he has, ala F1 teams, you don't have to see his number to know who he is from the stands. There's a lot to be said about that, I want my brand on his helmet.
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40Plus_922mx 1/20/2014 7:26pm
1/20/2014 7:26pm Edited Date/Time 1/20/2014 7:27pm
crashnburn11 wrote:
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his...
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his own team, so he is losing millions just from the opportunity cost
Cashmore wrote:
So he turned down a ride that would have been nothing but coin in his pocket to go blow his own personal money and get nothing...
So he turned down a ride that would have been nothing but coin in his pocket to go blow his own personal money and get nothing in return? Nope.... sorry.
You are right. Nope! The "other deal" {RCH...cough cough} was generous yes. But there is a lot more to Reed having his own team that would not come with the offer, Twotwo merchandise, toys, graphic kits, etc etc. And furthermore he rode every bike and decided that he wanted the green machine which was also not avail at RCH.
crashnburn11 1/20/2014 7:27pm
1/20/2014 7:27pm Edited Date/Time 1/20/2014 7:28pm
crashnburn11 wrote:
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his...
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his own team, so he is losing millions just from the opportunity cost
Cashmore wrote:
So he turned down a ride that would have been nothing but coin in his pocket to go blow his own personal money and get nothing...
So he turned down a ride that would have been nothing but coin in his pocket to go blow his own personal money and get nothing in return? Nope.... sorry.
from http://racerxonline.com/2013/09/24/between-the-motos-chad-reed
"And from what I understand, you turned down good money from them to keep your team intact?"
"Yeah, I could have been an over 2 million dollar guy before I swung a leg over a bike. "

He may even have deals for more than 2 million as is, but he is losing money compared to what he could have made just riding for their team. He just wants to do it his way
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davistld01 1/20/2014 7:47pm
1/20/2014 7:47pm
Motodude wrote:
He's investing in his brand..its working so far. Look at the standout professional presentation he has, ala F1 teams, you don't have to see his number...
He's investing in his brand..its working so far. Look at the standout professional presentation he has, ala F1 teams, you don't have to see his number to know who he is from the stands. There's a lot to be said about that, I want my brand on his helmet.
^^^THIS IS THE DEAL^^^

Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be a viable part of the world of SX/MX racing long after he's no longer in the saddle. Team TwoTwo will be instantly recognized as a premier racing team...will pull more outside sponsors looking for exposure, which means less $$$ out of Reed's bank account to keep the wheels greased. I totally see TwoTwo having a two rider team within two years...and neither rider will be Chad Reed.
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Katoomey 1/20/2014 7:56pm
1/20/2014 7:56pm
Motodude wrote:
He's investing in his brand..its working so far. Look at the standout professional presentation he has, ala F1 teams, you don't have to see his number...
He's investing in his brand..its working so far. Look at the standout professional presentation he has, ala F1 teams, you don't have to see his number to know who he is from the stands. There's a lot to be said about that, I want my brand on his helmet.
davistld01 wrote:
^^^THIS IS THE DEAL^^^ Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be...
^^^THIS IS THE DEAL^^^

Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be a viable part of the world of SX/MX racing long after he's no longer in the saddle. Team TwoTwo will be instantly recognized as a premier racing team...will pull more outside sponsors looking for exposure, which means less $$$ out of Reed's bank account to keep the wheels greased. I totally see TwoTwo having a two rider team within two years...and neither rider will be Chad Reed.
I agree completely with both of these comments.

It will be cool to see others riding under his tent and tutelage.
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Sullivan315 1/20/2014 8:01pm
1/20/2014 8:01pm
I agree with the branding but he also built a solid group of guys and didnt want to leave them hanging without a job
rocketsocks26 1/20/2014 8:24pm
1/20/2014 8:24pm
U gotta believe he gets all his equiptment meaning bikes, oils, racefuel, parts, tires, gear, etc for free. His gear deals boots shift n goggles I bet is ard a mil. He is a smart guy. Im not a huge fan but reoect him. N admire his family n dedication to the sport
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JW381 1/20/2014 8:30pm
1/20/2014 8:30pm
Motodude wrote:
He's investing in his brand..its working so far. Look at the standout professional presentation he has, ala F1 teams, you don't have to see his number...
He's investing in his brand..its working so far. Look at the standout professional presentation he has, ala F1 teams, you don't have to see his number to know who he is from the stands. There's a lot to be said about that, I want my brand on his helmet.
davistld01 wrote:
^^^THIS IS THE DEAL^^^ Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be...
^^^THIS IS THE DEAL^^^

Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be a viable part of the world of SX/MX racing long after he's no longer in the saddle. Team TwoTwo will be instantly recognized as a premier racing team...will pull more outside sponsors looking for exposure, which means less $$$ out of Reed's bank account to keep the wheels greased. I totally see TwoTwo having a two rider team within two years...and neither rider will be Chad Reed.
Katoomey wrote:
I agree completely with both of these comments.

It will be cool to see others riding under his tent and tutelage.
Similar to Deegan and how rich/successful he is as a brand. (Mentioned in the thread I started earlier that now resides in the dumbgeon haha)

I was wondering about this tho, he's had his team since 2011, someone on here said that he pays all his guys 6 figures a year, that's a lot of money. Does he have any way to get a bonus from Discount Tire after his win on Saturday? Especially after parking right in front of the Discount Tire banner.
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observer 1/20/2014 8:53pm
1/20/2014 8:53pm
davistld01 wrote:
^^^THIS IS THE DEAL^^^ Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be...
^^^THIS IS THE DEAL^^^

Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be a viable part of the world of SX/MX racing long after he's no longer in the saddle. Team TwoTwo will be instantly recognized as a premier racing team...will pull more outside sponsors looking for exposure, which means less $$$ out of Reed's bank account to keep the wheels greased. I totally see TwoTwo having a two rider team within two years...and neither rider will be Chad Reed.
Katoomey wrote:
I agree completely with both of these comments.

It will be cool to see others riding under his tent and tutelage.
JW381 wrote:
Similar to Deegan and how rich/successful he is as a brand. (Mentioned in the thread I started earlier that now resides in the dumbgeon haha) I...
Similar to Deegan and how rich/successful he is as a brand. (Mentioned in the thread I started earlier that now resides in the dumbgeon haha)

I was wondering about this tho, he's had his team since 2011, someone on here said that he pays all his guys 6 figures a year, that's a lot of money. Does he have any way to get a bonus from Discount Tire after his win on Saturday? Especially after parking right in front of the Discount Tire banner.
" Especially after parking right in front of the Discount Tire banner.".....

That's the move of a heady racer.
Chad's been around this game a long time & seen it all. He's proceeding cautiously forward, and as was mentioned previously, bet he's got a young talent on his team within a year or two.( Roczen would be an EXCELLENT addition!)
Bet he'd be a cool dude to work for.
I'm gonna have to ask Goose about that next time I see him.
ihatemotocross 1/20/2014 9:25pm
1/20/2014 9:25pm
davistld01 wrote:
^^^THIS IS THE DEAL^^^ Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be...
^^^THIS IS THE DEAL^^^

Becoming a brand, and marketing your brand is what makes the world go round. This is how Chad Reed will still be a viable part of the world of SX/MX racing long after he's no longer in the saddle. Team TwoTwo will be instantly recognized as a premier racing team...will pull more outside sponsors looking for exposure, which means less $$$ out of Reed's bank account to keep the wheels greased. I totally see TwoTwo having a two rider team within two years...and neither rider will be Chad Reed.
Katoomey wrote:
I agree completely with both of these comments.

It will be cool to see others riding under his tent and tutelage.
JW381 wrote:
Similar to Deegan and how rich/successful he is as a brand. (Mentioned in the thread I started earlier that now resides in the dumbgeon haha) I...
Similar to Deegan and how rich/successful he is as a brand. (Mentioned in the thread I started earlier that now resides in the dumbgeon haha)

I was wondering about this tho, he's had his team since 2011, someone on here said that he pays all his guys 6 figures a year, that's a lot of money. Does he have any way to get a bonus from Discount Tire after his win on Saturday? Especially after parking right in front of the Discount Tire banner.
Insurance/Derivative products are probably apart of this, courtesty of Llyods of London (exotic insurance policys)
Woobia 22
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Woobia 22 1/20/2014 9:34pm
1/20/2014 9:34pm
Congrats to the Reed family for investing in the long term, hope we see Tate racing one day.

I seem to remember Jeremy stating it would fail and also RC ( I think)

RC has stepped into a team that was already up and going with a major sponsor, just doesn't have the riders yet.

In the past Reedy made a few extra bucks by gambling on himself to win Championships etc through Lloyds insurance. I am pretty sure he would be on some bonus scheme with sponsors or separate deals.

He deserves all the success that comes his way, and also the Team behind him.
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BobPA 1/20/2014 9:59pm
1/20/2014 9:59pm
I still don't see how his "brand" is profitable. Selling some t-shirts and graphics is not enough coin to fund a race team. What happens when he retires and someone takes the number 22? I am just having a hard time seeing how he is making these millions and millions that all you vitards claim.

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mxfiend
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mxfiend 1/20/2014 10:21pm
1/20/2014 10:21pm
rocketsocks26 wrote:
U gotta believe he gets all his equiptment meaning bikes, oils, racefuel, parts, tires, gear, etc for free. His gear deals boots shift n goggles I...
U gotta believe he gets all his equiptment meaning bikes, oils, racefuel, parts, tires, gear, etc for free. His gear deals boots shift n goggles I bet is ard a mil. He is a smart guy. Im not a huge fan but reoect him. N admire his family n dedication to the sport
Def. Doesnt get his bikes for free which i know for a fact .
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shredder22 1/20/2014 10:32pm
1/20/2014 10:32pm
crashnburn11 wrote:
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his...
Even if he isn't this year, he could have made maybe $2 million for riding for RCH, but he probably isn't making too much for his own team, so he is losing millions just from the opportunity cost
Cashmore wrote:
So he turned down a ride that would have been nothing but coin in his pocket to go blow his own personal money and get nothing...
So he turned down a ride that would have been nothing but coin in his pocket to go blow his own personal money and get nothing in return? Nope.... sorry.
40Plus_922mx wrote:
You are right. Nope! The "other deal" {RCH...cough cough} was generous yes. But there is a lot more to Reed having his own team that would...
You are right. Nope! The "other deal" {RCH...cough cough} was generous yes. But there is a lot more to Reed having his own team that would not come with the offer, Twotwo merchandise, toys, graphic kits, etc etc. And furthermore he rode every bike and decided that he wanted the green machine which was also not avail at RCH.
Reed said the main reason he didn't go to RCH is because he couldn't bring his crew with him and those guys are like family to him so he didn't want to leave them hanging while he went over to RCH and had different mechanics, managers, etc.
Aussie_power_sports 1/20/2014 10:44pm
1/20/2014 10:44pm
You guys have to remember Chad is a very wealthy man and a decent amount of it is due to business investments.. I read in Forbes magazine that he made a large sum (4-8mil) cant really remember just from property investments, stating that none of that money came from racing. Pretty sure he made 1mil+ from his insurance policy for winning the outdoors in 09.

I bet he receives massive money from Fox for the help of re-branding Shift and making it popular again.
Motodude
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Motodude 1/20/2014 11:13pm
1/20/2014 11:13pm
Factory bikes and parts don't come for free. Like most of these situations, big money is made away from the sport or off the track.

Look at http://www.flaviobriatore.it/ and Jackie Stewart http://en.espnf1.com/brm/motorsport/driver/879.html . They build teams, Jackie a 3x world F1 champ, developed Stewart F1 then sold it off to Jaguar, then RedBull picked it up. $$$$ Flavio is a billionaire.

Funny true story. some years ago I found myself walking directly behind Jackie through Brisbane airport, ol Jackie suddenly stopped to pick up a coin off the ground. I almost burst out laughing how surreal it was..
Underground 1/21/2014 12:12am
1/21/2014 12:12am
He said he's spending millions, not millions of his own. Estimates would have to be in the 2-3 mil a year, and with all the sponsors and branding, he might not have to tip in much, if any.

I look at the JGR team. My thoughts are that it is mainly another way to market Toyota for Gibbs with SOME of the money they are paying him, and keep Coy busy and learning the bidness in a less expensive manner. Joe is making money from the Nascar team which pays for the MX team, with money from the additional sponsors. Or it's a good tax write off for promotion!

Either way, it's good for the sport and hope both Chad and Justin can maintain this form which is giving us ONE of the best seasons ever so far. BerrrrrrrraaaaAAAAAP!
JB 19
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JB 19 1/21/2014 12:55am
1/21/2014 12:55am
You think when he was riding all of those nationals last year on a bike he hated that he was paying out of his own pocket to not want to be there?

I would say his sponsorship with Discount Tire is big money and it also has some strings attached. ........I'm just assuming.

Whatever the deal is, it's great for the sport to still have him out there.
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Brent 1/21/2014 1:14am
1/21/2014 1:14am Edited Date/Time 1/21/2014 1:21am
I can see him spending that kind of dough, Monster Energy Kawasaki s race team budget is rumored to be in the 15 million a year range. I'm sure a lot of that is paying Weimer and RV, but even after they are paid the costs of trucks, bikes, fuel, flights, hotels, insurance, taxes, etc, is staggering.

I don't think Reed is in this to make money, I think he just wants to race on his terms and he has the bank account to make it happen.
JamesOliver 1/21/2014 1:51am
1/21/2014 1:51am
I seem to remember a few years ago when Reed first started the team he said that he had lots of money saved from over the years because he didn't waste it on fast cars etc.

Wasn't there a whole thing about James Stewart making $10 million dollars when he won the championship in 2009? No reason why Chad wouldn't have made much less.
overthebars39 1/21/2014 2:28am
1/21/2014 2:28am
Aussie_power_sports wrote:
You guys have to remember Chad is a very wealthy man and a decent amount of it is due to business investments.. I read in Forbes...
You guys have to remember Chad is a very wealthy man and a decent amount of it is due to business investments.. I read in Forbes magazine that he made a large sum (4-8mil) cant really remember just from property investments, stating that none of that money came from racing. Pretty sure he made 1mil+ from his insurance policy for winning the outdoors in 09.

I bet he receives massive money from Fox for the help of re-branding Shift and making it popular again.
http://www.therichest.com/celebnetworth/athletes/chad-reed-net-worth/
Motodude
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Motodude 1/21/2014 3:29am
1/21/2014 3:29am
When Kawi/Monster paid RV $2m last year it pretty much gutted all other Kawi race programs.
Motocross Illustrated 1/21/2014 3:44am
1/21/2014 3:44am
Motodude wrote:
When Kawi/Monster paid RV $2m last year it pretty much gutted all other Kawi race programs.
Is that all RV gets? like a million and a half. I think Cairoli earns something like that for half the work.
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ty159 1/21/2014 4:17am
1/21/2014 4:17am
BobPA wrote:
I still don't see how his "brand" is profitable. Selling some t-shirts and graphics is not enough coin to fund a race team. What happens when...
I still don't see how his "brand" is profitable. Selling some t-shirts and graphics is not enough coin to fund a race team. What happens when he retires and someone takes the number 22? I am just having a hard time seeing how he is making these millions and millions that all you vitards claim.
This apparently was written by someone who is ignorant of how royalties from merchandise and sponsorship dollars are generated.....

As for the number.... Let someone else race with it. Doesn't change "TwoTwo".... He has "TwoTwo" plastered all over the rig, bike, gear, clothing. "TwoTwo" will be around and continue to generate income until Chad has had enough and retires completely.

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