One of the most-viewed annual sporting events in the world, the Tour de France, is an economic boon for many parties. The cities and town that host or are on the tour see more visitors who spend money. Sponsors participate in a carnival-like parade. With global media coverage, it is estimated that over 170 million people watch some or all of the Tour, and each rider is a billboard for the team's sponsors. The Tour is the leading professional cycling event and all parties feel its economic influence.

IN PICTURES: 8 Financial Tips For Young Adults

Cities and Towns
The vast majority of the Tour takes place within France. Each year more than 200 towns apply to host the Tour. For those that pass muster, they spruce up their communities in preparation for the influx of visitors. Most of the time, the roads are repaved. Many days before the tour arrives, visitors spend the bulk of their vacation spending money on lodging, camping sites, restaurants and shopping.

If your town is one of the lucky ones, the economic affect is worth the hassle. For many of these towns, the Tour represents the biggest event of the decade. Towns typically pay 100,000 euros to 150,000 euros to host the start or finish of a stage. (If you do a little sleuthing and stay flexible on which teams to follow, you can still enjoy all the excitement of live sporting events. Don't miss Money-Saving Tips For Sports Fans.)

Tour de France Caravan
The Tour de France Caravan is one of the most unique promotional ideas around. Henri Desgrange created the caravan in 1930 to give sponsors a way to promote their brands and products. The caravan is one of the major features of the Tour as sponsors strive to create an image in the minds of the millions of spectators on the road. The 20-kilometer long procession involves more than 30 brands in 160 wildly decorated vehicles. It takes 45 minutes for the parade to pass, as representatives hand out 16 million gifts to the spectators. It is a spectacle that for 39% of people is the main attraction, according to one survey.

Sponsors range from local companies that pay for their one-day participation to national firms that provide significant support. Sponsorship in the caravan generally runs from 200,000 euros to 500,000 euros per advertiser. (If you're a tennis fan, these numbers tell the story of one of the biggest sporting events in the world. Check out Wimbledon: By The Numbers.)

Media Coverage
If you watch the Tour, you will see the motorbikes with TV camera operators and photojournalists on the back seat following all the action. One-hundred and seventy million people in 186 countries watch the Tour through 118 TV channels with live coverage on 60 channels. In 2007, a new television contract was signed with France Televisions for 120 euros million over five years. They also provide the feed to all other broadcasts. This gives them a great platform to sell commercials to the French audience.

Twenty-two professional teams will participate in the 2010 Tour. The average budget for each team is 8.6 million euros and the average salary of a Pro Team member is 190,000 euros. Most teams share the prize money among all team members, as each member has a role to play to help the team do well. The winner of the Tour de France receives 450,000 euros. In the past, winners have shared their winnings with their team members.

The Bottom Line
A look at the economics of the Tour de France shows that all who participate receive valuable benefits. As a global sporting event held each year, the Tour gives the towns, sponsors and the country a positive way to promote themselves while offering a three-week event. (For more, check out 7 Affordable Summer Adventure Sports.)

Catch up on the latest financial news, read Water Cooler Finance: Shocking Court Rulings, Sinking Markets.

Related Articles
  1. Investing News

    Learn from These Big CEO Blunders

    A ceo can seem to have it all: power, influence and gravitas. But it can all erode — along with a company’s share price — in the wake of a scandal.
  2. Personal Finance

    Who Is Next in the Athleisure Trend?

    Which companies are jumping on the growing athleisure wear trend and how can investors start getting in on this?
  3. Personal Finance

    Top 10 Most Valuable Sports Teams in 2015

    Cleats, pads and profits: we take a look at the top 10 most valuable sports teams in the world.
  4. Personal Finance

    The Future Outlook of the Golf Industry

    The popularity of golf peaked in 2003. To regain popularity and survive, the industry is adapting to appeal to a younger generation of players.
  5. Entrepreneurship

    Nike and the NBA, a Perfect Duo?

    What does Nike's recent eight-year contract partnership with the NBA entail for its largest competitor Under Armor?
  6. Economics

    The NBA’s Business Model

    Drawing interest domestically and abroad, the NBA has seen its popularity and revenue streams rapidly increase over the past few years.
  7. Personal Finance

    Is ESPN a Sport Monopoly?

    With such a dominant presence in sports as demonstrated through substantial ratings and a firm online presence, some may consider ESPN a sports monopoly.
  8. Economics

    3 Main Reasons Las Vegas Sports Teams Keep Folding

    Learn why a unique labor force, competition for entertainment dollars and the stigma of gambling have kept professional sports out of Las Vegas.
  9. Investing News

    Why FIFA Can't Give the 2022 World Cup to Qatar

    Learn about the high price tag for the 2022 World Cup in Qatar, along with allegations of human rights abuses and bribery scandals in the bidding process.
  10. Entrepreneurship

    How Did Mark Cuban Get Rich?

    From his first business to today, here’s how Mark Cuban got rich.
  1. Why is Manchester United (MANU) carrying so much debt?

    The takeover of Manchester United by the Glazer family beginning in 2005 saddled the historic club with substantial amounts ... Read Full Answer >>
  2. What are Manchester United's (MANU) largest revenue sources?

    Manchester United is one of the most popular U.K. soccer teams. Its principal stadium is Old Trafford, located in the heart ... Read Full Answer >>
  3. Does Manchester United (MANU) own Old Trafford stadium?

    Old Trafford Stadium was built for and is currently still owned by Manchester United Football Club (Man Utd.). This means ... Read Full Answer >>
  4. What's the biggest sports endorsement deal ever signed?

    According to Forbes, basketball player Derrick Rose holds the largest endorsement deal as of 2014; the deal is for more than ... Read Full Answer >>
  5. What are the biggest stadium naming rights deals of all time?

    The top three stadium naming rights deals of all time were all for stadiums hosting New York City teams. The largest was ... Read Full Answer >>
  6. What is the difference between a mutual fund and money market fund?

    The Herfindahl-Hirschman index can be used to determine competitive balance in sports. Competitive balance is desired in ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  4. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  5. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  6. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
Trading Center