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.

Teams
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

    These Free Super Bowl Ads Happened (BUD)

    The average 30-second Super Bowl cost marketers $5 million in 2016. But these companies benefited from free advertising during and after the game.
  2. Investing News

    Super Savings for Your Super Bowl Party? Bet on It

    Prices for wings, avocados and TVs are all coming down, which will make your Super Bowl 50 festivities less costly.
  3. Investing News

    Are Super Bowl Ads Worth Their High Cost?

    Are Super Bowl ads worth the investment? A look at the cost and how they're received.
  4. Mutual Funds & ETFs

    The Top 4 Entertainment ETFs for 2016 (PEJ, XLY)

    Learn more about the entertainment sector, the companies that are included and the four ETFs that provide investors with exposure to this industry.
  5. Markets

    Top Investment Banks in the Sports Industry

    Find out why the top investment banks in the sports industry tend to be smaller niche players and are prepared to battle the Wall Street giants for business.
  6. Retirement

    How Pro Athletes Can Choose the Right Advisor

    When it comes to finances, professional athletes can be vulnerable. Here's what they need to look for in a financial advisor.
  7. Investing

    How FanDuel and DraftKings Work

    DraftKings and FanDuel lead the daily fantasy sports industry, supported primarily by advertising, entry fees, media companies and sports leagues.
  8. Personal Wealth & Private Banking

    Five of the Best Yacht Clubs in Seattle

    Seattle doesn’t have a year-round sailing environment, but there are lots of opportunities for boating enthusiasts, from modestly priced to high-end clubs.
  9. Personal Wealth & Private Banking

    Four of Miami's Best Yacht Clubs

    Choices abound in Miami for boating enthusiasts, from high-end, high-priced yachting clubs to no-frill groups that still offer races, cruises and more.
  10. 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.
RELATED FAQS
  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 >>
Hot Definitions
  1. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  2. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  3. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  4. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  5. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
Trading Center