Lotto and Intermarché Merger Warning: Cycling Is Becoming Too Expensive

Belgium boasts the wealth of having up to four teams capable of competing at the WorldTour level. However, the upcoming merger between Lotto and Intermarché-Wanty reveals that the price tag for this richness is becoming far too high.

UAE Emirates reportedly carries a budget of €65 million. INEOS Grenadiers is above €50 million. Red Bull-BORA-hansgrohe has grown to a similar level. Visma | Lease-a-Bike’s budget is estimated well over €40 million. Lidl-Trek’s budget is increasing from €35 million to €40 million. Decathlon-AG2R La Mondiale is expected to operate with €40 million starting in 2026 as the French sporting goods chain takes ownership of the team.

In recent years, WorldTeam budgets have risen dramatically. Several teams employ more than 200 staff members. Beyond maintaining a top-level men’s squad, they also run women’s and development teams, whose costs have only increased over the years.

The question is whether the massive budget increases in the WorldTour are justified. Is cycling worthy of such enormous sponsor investments? According to certain reports, cycling remains comparatively affordable, which could justify the budget growth.

In a brochure, the global sports marketing agency Wasserman highlights the opportunities in cycling. "We are convinced that cycling offers one of the most dynamic and untapped opportunities for brands to make an impact. This is the perfect moment to invest in the world of two wheels. Cycling continues to grow, innovate, and inspire," writes Dries Smets, Wasserman’s cycling director.

According to the agency, cycling is the sixth largest sport globally, with no less than 683 million fans worldwide. Additionally, it ranks among the top three fastest-growing sports in terms of revenue and audience reach.

Statistics
These are fantastic statistics, and the amounts handled by top teams underline that cycling is on the rise. Yet many WorldTour teams are struggling. Securing new sponsors proves much more difficult than expected, and the asking prices are often too high for many companies.

The French WorldTeam Arkéa-B&B Hotels, featuring French Tour revelation Kévin Vauquelin, has already announced that both sponsors will withdraw after this year, leaving the team’s future highly uncertain. The merger between Lotto and Intermarché-Wanty is happening purely out of necessity.

Arnaud de Lie and Biniam Girmay. Photo: Cor Vos

Intermarché-Wanty boasts Biniam Girmay, the great champion of the African continent. His green jersey and three stage wins at last year’s Tour de France were celebrated in many African countries. However, it hasn’t yielded the expected major investment from multinationals targeting the African market.

Since Dstny dropped out as a co-title sponsor, Lotto has been searching for a replacement financier for more than a year. The Belgian Lottery has been the main sponsor of a professional cycling team since 1985, but now the team must merge to remain sustainable. An insider told us that a promotion to the WorldTour would not have been affordable independently.

The other two Belgian WorldTeams are also facing difficulties. Brothers Christophe and Philip Roodhooft run one of the most successful squads in the peloton. With riders like Mathieu van der Poel and Jasper Philipsen, they rack up major victories. Yet they have been searching for a second title sponsor for months after Deceuninck’s withdrawal.

Reportedly, an amount of around €8 million is being requested to be prominently associated with Mathieu van der Poel. There are interested parties, but the brothers have even been told by a serious company that it wants to wait to see what impact the trade war initiated by former US President Donald Trump might have on the business. So it’s not that easy to secure millions.

Fortunately, the Roodhooft brothers have managed solid financial policies for years and, as one of the few teams at the highest level, have built a financial buffer for the future. Still, the absence of a major second sponsor behind Alpecin cannot continue indefinitely.

It is known that Soudal Quick-Step’s owner Zdenek Bakala has been injecting millions into the team’s financing for years. The big question now is what Remco Evenepoel’s move to Red Bull-BORA-hansgrohe — a transfer increasingly confirmed by sources close to the German team to WielerFlits — means for the team. Some sponsors, particularly Specialized, consider the link with Evenepoel essential. On the other hand, the buyout fee provides some financial relief. New CEO Jurgen Foré is reportedly already exploring potential reinforcements.

Many smaller WorldTeams also face hardships. At Team Picnic – PostNL, team manager Iwan Spekenbrink has had to tread carefully for years to balance the finances. Rumors are growing that Jayco – AlUla’s Saudi Arabian co-title sponsor will withdraw after this year.

Stagnation
The malaise among the lower-tier WorldTeams is connected to a broader trend in cycling. TV revenue is under pressure. Organizers of top races find the growth curve for broadcast rights has flattened, and in many cases, they have to settle for less money. Several broadcasters are even considering dropping broadcasting rights for some major events. It is also a negative sign that Netflix is ending its Tour de France documentary after three years due to poor viewing figures and high production costs.

Photo: Cor Vos

Within cycling, many now look toward the OneCycling project. Although the UCI has shelved this initiative, the founders remain positive about the arrival of a new competition format, with the Saudi investment fund SURJ reportedly ready to invest $300 million. The advent of OneCycling is said to bring significant sponsor money back into cycling.

Details about the plan and how more sponsorship funding will be attracted have not been disclosed by the organizers. This lack of information fuels mistrust and increases uncertainty surrounding OneCycling’s launch.

It is clear that an enormous imbalance has developed at cycling’s highest level, growing worse every year. For many stakeholders, cycling is becoming too expensive. And it remains questionable whether the huge amounts invested in some teams are truly justified.