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broken record
Reed made good money back in the days when motor sports sponsorship + factory money was flowing, and the economy was booming. Then, he made some very good investments. Today, the money coming in is a LOT less. Companies have realized that motorsports sponsorship was more of a corporate ego boost than a sensible use of marketing budgets. There is no money train like the old days. This is impacting ALL motorsports.
Today, Reed has to pay for all the expenses of running a team, and whatever is left over is what he 'makes'. There are differences of opinion on what that number is. Many think Reed is negative cash flow already...and few who know the numbers in this sport think he is really netting any serious money. He is certainly earning less than he would make just riding for another team. Chads own agent (Steve Astephen) has stated that he recommended Chad fold up 22 and just go race for a top team and get paid in 2014. If it was not for Discount Tire...22 would not be racing right now. Chad is no fool.
If Chad hired KRoc...he would almost certainly be losing big money. Expenses would go up by about $250K a year just for a 2nd bike and associated resources...plus he would have to pay KR about $2M. That is $ off the already thin bottom line.
RCH, 22 and JGR could all be looked at as professional hobby teams, two of them backed by people with a true love of the sport. JGR has the deepest pockets...then RCH...then Chad...who is small fry in comparison to the backers of those other teams.
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And "changing the paradigm" would mean Chad pays out of pocket. Period. He's not going to do that.
When he switched over KTM made a lot of sense to me, since KTM buys out every single future contender. Musquin, Roczen, Herlings... Then, you think, well, he is german, gets red bull as a personal sponsor and the austrian brand and you think they could be attached for life.
But, woohoo, honestly, I understand completely that having RC as a team manager and your beloved Suzukis in your truck is an extra, but still. RCH has to have offered him a crazy amount of money, even that KTM could not afford, or maybe would not.
What I can't get is Red Bull still being his personal sponsor since RCH has monster?
Maybe the Husqvarna next effort in US has left empty the budget of KTM.
Anyways, I'm willing to see if this rumour is true.
They are different teams that operate differently. RCH has more money and more resources than TwoTwo, end of story.
Reed could probably afford Millsaps, and I could see him winning some races with either green bike under him.
Pit Row
Post a reply to: Roczen to change teams for 2015