Armstrong a money spinner

Lance Armstrong's popularity not only extends to pulling fans 'through the aisles' but also sponsors. This in a sport that needs every dollar it can get its hands on right now.

With the 2011 season about to begin at the Santos Tour Down Under and Lance Armstrong set to compete in his last international event in Adelaide we have more confirmation of the drawing power of the seven-time Tour de France winner.

Armstrong's popularity not only extends to pulling fans 'through the aisles' but also sponsors. This in a sport that needs every dollar it can get its hands on right now.

Simply put the Texan is a money spinner, an athlete who brings more than talent to the playing field.

A report in the US financial publication Bloomberg revealed that the Amaury Sports Organisation (ASO), organisers of the Tour de France, saw a marked increase in revenue stemming from the 2009 comeback of Armstrong.

Coincidentally this piece of news also justifies the investment by South Australian Tourism and the State Government in getting Armstrong to Adelaide.

The headline in Bloomberg says it all: "Lance Armstrong's Comeback Helped Add $32 Million to Tour Owner Income."

How was Armstrong's contribution to the burgeoning ASO coffers measured? His presence at the 2009 Tour de France and rivalry with then teammate Alberto Contador prompted sponsors like Skoda and Orange to renew their partnerships with the ASO.

"The Armstrong-Contador duel was certainly not irrelevant to the success of the race," quoted Bloomberg. "The financial targets of the Tour de France were "slightly" surpassed."

And so it must be for the Santos Tour Down Under (TDU).

"The proof is in the pudding ... if you look at the 2008 race versus 2009 and 2010, the numbers speak for themselves, they're staggering," said TDU boss Mike Turtur when it was announced Armstrong would ride in Adelaide.

"We're in a business here, I know we stage a bike race, but just as importantly, we stage a tourism event which is designed to do a couple of things - bring people to SA and also to increase economic activity.

"When you're running a business ... you look at things that work and are proven and deliver - certainly having Lance Armstrong on the start line caters for all those considerations more than we could ever have dreamt about.

Needless to say there is danger in this. With his genuine retirement even closer the sport has a problem - who or what will fill the void Armstrong leaves?

How secure are those investments by sponsors if they have no personality on which to anchor their involvement? Something they clearly factor into their accounting.

In some ways the past decade may be a lost one, with the sport coasting along on Armstrong's coat-tails in much the same way Australia is enjoying a measure of economic security on the back of the mining boom.

What has the sport really done to secure a stable economic future?

Recent events have shown us there is no certainty for sponsors (or teams) in the license system and some teams are having issues securing the backing required.

Yes there is a developing cohesive global circuit but we probably need a complimentary franchise team structure to make it work. And without doubt we need a root and branch restructuring of the governance of the sport.

At the moment there are more questions than answers and we can only hope the smart guys in the room come up with a few ideas and action them.

If not [without a sport defining personality like Armstrong] the next decade may be an uncertain one.