Would You Spend $2-Million of Sponsorship Dough on a Trailer?

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10/25/2019 11:56 AM
Edited Date/Time: 10/25/2019 4:47 PM

Am I hearing correctly that the new Husky Team trailer cost $2,000,000.00? I am pretty stunned by that figure, but Kawi has a similar unit as of last year. Is this the new "bar" for signing top-tier riders? That is to say, do these teams market their McMansionTrailers to rider's agents? And, do sponsors consider this type of financial overhang as a positive ("hey, this is a kick ass trailer--as CEO of the primary sponsor my crew will love hanging here") or negative ("wow, you can tell these guys are riding in style on OPM....other people's money, like OUR'S. RUN!!")?

And, with J-Bone revealing that JGR is down-sizing from running two semi's around North America to running a single unit due to a lack of funding, I am left to question which way the sport is heading. Would a non-factory team find box-vans (or showhaulers) to be more favorable, vis-a-vis, expenses and allocation of sponsorship dollars?

Did AutoTrader or Weinerschnitzel really benefit from running a couple of billboards around the country, or would Fun-Mover's accomplish the same thing at a favorable p&l hit? Remember, this thread is more directed at "what is the most efficient use of sponsorship dollars?"....not a question of the bad-assery of luxo team trailers.

Reed did TeamTwoTwo on the large. When he ran the privateer Husky, he ran it out of a borrowed ShowHauler (a big ass FunMover for clarity). He even said then that he was not going in the hole to run a semi around the country.

I mean, I completely understand human nature. For sure, who gives up flying the corporate G5 when the clients are footing the bill and the kitty gets refreshed annually? But, should we get upset when the well runs dry and doors close?

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“Men, we are surrounded by the enemy. We have the greatest opportunity ever presented an army. We can attack in any direction.”
― General Anthony McAuliffe, 101st Airborne, while addressing troops at Bastogne during the Battle
of the Bulge.

10/25/2019 12:06 PM

Coming from a guy who owns a small trucking company, and doesn't like much besides motocross.... I sure as hell wouldn't spend $2 million on a tractor and trailer. That's stupid.

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10/25/2019 12:07 PM

mikec265 wrote:

Coming from a guy who owns a small trucking company, and doesn't like much besides motocross.... I sure as hell wouldn't spend $2 million on a tractor and trailer. That's stupid.

We own a towing company and just spent $750,000 on a new rotator. When you need it and it helps why wouldn’t you spend that??

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10/25/2019 12:10 PM

$2M on a very specialized and purpose built piece of equipment that will last you 10+ years isn’t really a big deal in my opinion. I imagine the trailer is more of a draw to the support personnel than the rider anyway. The mechanics are the ones who need it most.

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10/25/2019 12:17 PM

Couple pizzas, and a couch to take a nap.

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10/25/2019 12:20 PM

mikec265 wrote:

Coming from a guy who owns a small trucking company, and doesn't like much besides motocross.... I sure as hell wouldn't spend $2 million on a tractor and trailer. That's stupid.

Hauling freight and professional motor sports are about as far apart as you can get. You’re trying to turn a profit. They’re trying to win championships.

The fact they both use a tractor trailer to accomplish the goal is where the similarities end.

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10/25/2019 12:21 PM

Companies write off depreciation, and one day sell those for big $.It is similar to a Trade Show Booth once set up in the pits. The same reason Red Bull sets up big stages, bars and eateries with no race team. Marketing. If you want to be the small guy back behind the semi's you will get noticed a lot less by Joe Blow.

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2015 Beta 500 RS, history: 99 KTM 300, 87 CR250, 84 KLR 600, 82 GPZ 550, 81 KX 250, 80 KX 250, 79 Montesa 414 VE, 78 250 VB, 77 360 VB, 76 360 VA, 75 YZ 125, 74 TM 125, 72 TS 125, 60's West Bend Go Boy Kart

10/25/2019 12:25 PM

Money-crunching and/or spending the dough for the show, different deals.

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10/25/2019 12:26 PM

Johnny Depp wrote:

Companies write off depreciation, and one day sell those for big $.It is similar to a Trade Show Booth once set up in the pits. The same reason Red Bull sets up big stages, bars and eateries with no race team. Marketing. If you want to be the small guy back behind the semi's you will get noticed a lot less by Joe Blow.

Kawi moved their old trailer to the factory off road team after 10 years doing MX/SX. They get their money’s worth out of it.

Plus like you said, a factory team needs to look professional. Looking professional will draw more sponsors and more money to the team.

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10/25/2019 12:27 PM
Edited Date/Time: 10/25/2019 12:33 PM

So Bobby Hewett is spending big dough on upgrading his team, Meanwhile JGR Suzuki is looking for change in the couch cushions to rent one mid level 450 guy?

In retrospect, maybe not a good idea for Coy to change to Suzuki from Yamaha? Everybody in this sport knows that Suzuki management is fickle, and R&D investment is terrible.

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10/25/2019 12:33 PM

$2MM doesn't get you out of the parking lot with a 2-rider B level team in a full rig team (starting from scratch)

*Facts*

If I was willing and able to blow $2MM, it'd be a toy hauler and a solid B level rider as a start up

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10/25/2019 12:51 PM

EngIceDave wrote:

$2MM doesn't get you out of the parking lot with a 2-rider B level team in a full rig team (starting from scratch)

*Facts*

If I was willing and able to blow $2MM, it'd be a toy hauler and a solid B level rider as a start up

There are plenty of used setups on racingjunk.com for 150K. They aren't purpose built for moto but would work just fine for a smaller team on a budget. Here are a couple of examples.



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10/25/2019 12:53 PM

But do you really thinking they are buying it outright with cash? I doubt it.

I would finance it over a 15 year loan. Spend $15,000 per month, that is $200,000 per year.

So now you're only budgeting $200k per year for truck/trailer, which is a drop in the budget on the total budget you have to work with. Use the rig for 5 years(cost $1m). Sell it for $1-1.5mill, pay off the remain debt, buy another and do it again.

That's all easier said than done, but just showing an example of how 2million is a crazy number but not when you use it the right way.

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10/25/2019 12:59 PM

Brent wrote:

So Bobby Hewett is spending big dough on upgrading his team, Meanwhile JGR Suzuki is looking for change in the couch cushions to rent one mid level 450 guy?

In retrospect, maybe not a good idea for Coy to change to Suzuki from Yamaha? Everybody in this sport knows that Suzuki management is fickle, and R&D investment is terrible.

Because Yamaha was working out so well...

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2015 Beta 500 RS, history: 99 KTM 300, 87 CR250, 84 KLR 600, 82 GPZ 550, 81 KX 250, 80 KX 250, 79 Montesa 414 VE, 78 250 VB, 77 360 VB, 76 360 VA, 75 YZ 125, 74 TM 125, 72 TS 125, 60's West Bend Go Boy Kart

10/25/2019 1:00 PM
Edited Date/Time: 10/25/2019 1:02 PM

A uh.. 'friend' of mine once worked for a top motorcycling racing team. The team had some really big outside sponsors, and because of that, and a LOT of money to work with. More than probably any other team in the paddock, including the factories.

The team spent every single dime every year they had the sponsor, for 4+ years. When the sponsor suddenly went away, the team immediately folded because they didn't have time to find a new sponsor.

They didn't save one penny for a 'rainy day fund' (even though they had a massive budget, more than they ever had had). They didn't plan for the future, at all.

Teams are like people. If given X amount of money, they are going to spend X + $10 more, then wonder what happened.

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10/25/2019 1:19 PM

What do I know?

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10/25/2019 1:35 PM

EngIceDave wrote:

What do I know?

How to properly rehab an ACL reconstruction? laughing cheerful

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10/25/2019 1:54 PM

Doesnt seem like an issue to me. Theyre spending $200,000 a year on their main source of advertising - racing. The ROI is certainly there. Otherwise they wouldnt do it.

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10/25/2019 1:59 PM
Edited Date/Time: 10/25/2019 2:01 PM

I know I break my neck every time I see one on I70.

I also remember when they first started to show up at the nationals. They would roll in after dark and ever one was like wow.

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10/25/2019 2:00 PM
Edited Date/Time: 10/25/2019 2:03 PM

kb228 wrote:

Doesnt seem like an issue to me. Theyre spending $200,000 a year on their main source of advertising - racing. The ROI is certainly there. Otherwise they wouldnt do it.

How does one measure ROI on a semi wrap?
Serious question---not being a troll.
I have owned and sold several businesses and the whole semi-truck presence in mx has always intrigued me, vis-a-vis value vs. bling.

Perhaps I am jealous, but I've tried like hell to justify a Prevost in several of my ventures and simply could not convince any CFO to let me do it. 😄

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“Men, we are surrounded by the enemy. We have the greatest opportunity ever presented an army. We can attack in any direction.”
― General Anthony McAuliffe, 101st Airborne, while addressing troops at Bastogne during the Battle
of the Bulge.

10/25/2019 2:35 PM
Edited Date/Time: 10/25/2019 2:37 PM

kb228 wrote:

Doesnt seem like an issue to me. Theyre spending $200,000 a year on their main source of advertising - racing. The ROI is certainly there. Otherwise they wouldnt do it.

Red Crawford wrote:

How does one measure ROI on a semi wrap?
Serious question---not being a troll.
I have owned and sold several businesses and the whole semi-truck presence in mx has always intrigued me, vis-a-vis value vs. bling.

Perhaps I am jealous, but I've tried like hell to justify a Prevost in several of my ventures and simply could not convince any CFO to let me do it. 😄

having worked in/around marketing for 20yrs, proving ROI is often black magic and trickery at best.

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10/25/2019 2:44 PM

mikec265 wrote:

Coming from a guy who owns a small trucking company, and doesn't like much besides motocross.... I sure as hell wouldn't spend $2 million on a tractor and trailer. That's stupid.

cjg23307 wrote:

We own a towing company and just spent $750,000 on a new rotator. When you need it and it helps why wouldn’t you spend that??

Right but could you do the same Job for 1,000,000 and spend the oner mill on another rider ?
Not your tow truck, but in this case hauling bikes tools parts etc.

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10/25/2019 3:09 PM

3 funmovers gets more eyes on the sponsor.
When has 99% of people ever seen a factory rig going down the road for any sport? Never.
Me, less than 5 times. Lucas, Bud Light, Toyo tires,
Mickey Thompson, and a Ferrari Challenge team.
Only because I was with them.

For the factory, they probably don't care.
For the sub sponsors, they would get 3 times the exposure with 3 smaller rigs.

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10/25/2019 3:58 PM

WhatchaWant wrote:

3 funmovers gets more eyes on the sponsor.
When has 99% of people ever seen a factory rig going down the road for any sport? Never.
Me, less than 5 times. Lucas, Bud Light, Toyo tires,
Mickey Thompson, and a Ferrari Challenge team.
Only because I was with them.

For the factory, they probably don't care.
For the sub sponsors, they would get 3 times the exposure with 3 smaller rigs.

See, this is the logic that keeps smacking me in the face. If a rider goes down, park his FunMover and allocate those travel expenses into a reserve account. If you are down to 1 guy (frequently the case due to injuries)----then 1 FunMover and attendant expenses travel and everybody else stays home.

No one has convinced me yet that wrapped semi's are the better financial decision over wrapped funmovers. Sure, it has become the norm----but we also used to allow smoking in restaurants and 2 martini lunches which was cool for smokers and drunks! We had to dial those fockers back a bit, and MX sponsors may have to do the same with teams. 😄

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“Men, we are surrounded by the enemy. We have the greatest opportunity ever presented an army. We can attack in any direction.”
― General Anthony McAuliffe, 101st Airborne, while addressing troops at Bastogne during the Battle
of the Bulge.

10/25/2019 4:00 PM

EngIceDave wrote:

What do I know?

avidchimp wrote:

How to properly rehab an ACL reconstruction? laughing cheerful

Gotta admit, my shit is going well on that front

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10/25/2019 4:03 PM
Edited Date/Time: 10/25/2019 4:03 PM

mikec265 wrote:

Coming from a guy who owns a small trucking company, and doesn't like much besides motocross.... I sure as hell wouldn't spend $2 million on a tractor and trailer. That's stupid.

cjg23307 wrote:

We own a towing company and just spent $750,000 on a new rotator. When you need it and it helps why wouldn’t you spend that??

It's their money, so screw it, but I don't see a "need" to spend $2 million on one tractor trailer set up.

With that rotator you make way more than I do on one job, so the cost is justified.

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10/25/2019 4:15 PM

two girls at the same time.

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10/25/2019 4:15 PM

WhatchaWant wrote:

3 funmovers gets more eyes on the sponsor.
When has 99% of people ever seen a factory rig going down the road for any sport? Never.
Me, less than 5 times. Lucas, Bud Light, Toyo tires,
Mickey Thompson, and a Ferrari Challenge team.
Only because I was with them.

For the factory, they probably don't care.
For the sub sponsors, they would get 3 times the exposure with 3 smaller rigs.

I see them all the time. Then again, my business is next to Interstate 10.

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Arroyo Seco Raceway www.asmaracing.com

10/25/2019 4:16 PM

Here is fact many do not want to accept....sorry if it hurts

SX/MX is far smaller than most think. Because you think it's awesome (nothing wrong with that), you tend to think everyone thinks it's awesome. You're in a minority, not a majority. As awesome as it is, whatever you think new mx bike sales are, is likely wrong.

It's less, far less

Who buys new bikes every year anymore?? No one. We now race a bike for a few years, modifying to keep up, rather than buying new, crushing OEM sales

Sponsorship is tough
There is limited "billboard space" on each bike, making TV visual space minimal. Gear is covered typically with everyone but the outside sponsor. If you notice, everyone in auto racing refers to their vehicle as the "XXXYZ Ford/Chevy super dart" while in SX/MX they're referred to as only one of the big 5, only

It's not as rich an environment as people think

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10/25/2019 4:56 PM

I want to have a team sponsored by a BBQ sauce company. That’s where my head is at right now.

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