Credibility: Why Is Mv Not Racing?? - MVAgusta.net
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post #1 of 45 (permalink) Old 05-05-2011, 09:46 PM Thread Starter
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Credibility: Why Is Mv Not Racing??

So we have these great bikes that are built for performance off the showroom floor and a strong racing tradition (at least back in the day).

So why does MV not invest/participate in superbike racing? The tiny effort made with one rider for one season a couple years ago does not count. I'm talking a real sponsorship effort.

I don't think MV Agusta can really have any credibility if they do not compete on the track!!!
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post #2 of 45 (permalink) Old 05-05-2011, 09:57 PM
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Because it costs a lot of money.
MV has not been profitable since it's (latest) inception. Despite sponsors, racing is a drain on the P&L. Companies such as Ferrari sell cars (they often don't like) in order to fund their racing program. Similar with Ducati. Why do you think Ducati ditched their WSB team ? To pay for MotoGP and Rossi.

The ROI (Return on Investment) for most racing and sponsoring programs is usually below 1, which means it eats money. As a finance professional I've been on different sides of the deal, and I've hardly seen anything work out. For instance, I performed discounted cash flow analysis on the Brazilian Soccer Team and Tiger Woods when I worked for Nike. It was ugly. Usually the last resort for any of the brand managers involved will be that their asset has a brand building capacity whih goes beyond the category. Marketing fluff...

I'd like to analyze the Red Bull effort

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post #3 of 45 (permalink) Old 05-05-2011, 10:25 PM
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$$$$$$$$$$$$$$$

Or lack thereof.

Now if Red Bull would just step-up to the plate and fund it I am sure Castiglioni and Bondi would love the opportunity.

I used to be fast....now I just dream about it.
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post #4 of 45 (permalink) Old 05-05-2011, 10:47 PM Thread Starter
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Thanks for the professional input YVES. But it's difficult to understand why MV can't invest at least in any of the regional superbike series- ie. BSB, AMA, Italian SB, etc.. I would think, with the exception of WSB that the cost would be minimal to participate, after all thats the entire concept of superbike, supersport; involvement with minimal costs.

MV has a new F4, the new F3, a new RR; but they can't dig up enough scratch for a little race effort. I have to call Bull Shit on that.

You stated the reason why these companies sponsor is for "BRAND BUILDING CAPACITY". From a nonfinance guy, I'm guessing this surrounds the inability to quantify the ROE from sponsorship. So it comes down to a simple belief from the CFO that this investment is a good thing.

In MVs case, racing is not something they should consider based on a quantified ROE. THEY HAVE A FREAKING RESPONSIBILITY TO RACE!!!How can you be in the business of making race bikes and not actually race?? That Italian dude that just bought MV back from HD should be ashamed of himself!!!
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post #5 of 45 (permalink) Old 05-05-2011, 10:55 PM
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While I'd love to see them race again...I'd rather wish they spent the money on extending their dealer network....

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post #6 of 45 (permalink) Old 05-06-2011, 02:05 AM
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Quote:
Originally Posted by yves View Post
Because it costs a lot of money.
MV has not been profitable since it's (latest) inception. Despite sponsors, racing is a drain on the P&L. Companies such as Ferrari sell cars (they often don't like) in order to fund their racing program. Similar with Ducati. Why do you think Ducati ditched their WSB team ? To pay for MotoGP and Rossi.

The ROI (Return on Investment) for most racing and sponsoring programs is usually below 1, which means it eats money. As a finance professional I've been on different sides of the deal, and I've hardly seen anything work out. For instance, I performed discounted cash flow analysis on the Brazilian Soccer Team and Tiger Woods when I worked for Nike. It was ugly. Usually the last resort for any of the brand managers involved will be that their asset has a brand building capacity whih goes beyond the category. Marketing fluff...

I'd like to analyze the Red Bull effort
Dude... Is this the Yves I used to ride with here in Portland with Chris Ancien? Jeff Lind here Bizzotch!
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post #7 of 45 (permalink) Old 05-06-2011, 03:29 AM
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Speaking of cred. How much cred do you have black ninja assassin guy!

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post #8 of 45 (permalink) Old 05-06-2011, 03:35 AM
It's true, racing costs....big style. Formula One car racing teams budgets are massive, similarly MGP teams, just think of Ducati's wages bill for Rossi alone!

Like many others I'd love to see MV's out there on the track but unless major sponsors (i.e. someone with Ooodles of cash!!) take an interest, I think the privateers will be waving the MV flag for some time to come. For now I'm just pleased the company is still making production motorcycles, the recent past for MV has been shakey to say the least.


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Keep one wheel down!

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If you can't fix it with a hammer you've got an electrical problem!


No MV's in the garage anymore
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but I pop in here from time to time
. Come to think of it I don't have a garage since the old one burnt down!
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But.....a new one is currently rising from the ashes......watch this space!
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post #9 of 45 (permalink) Old 05-06-2011, 04:51 AM
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Cleaning debts, improving your image, prove that the calendar you'll propopose for bike development and return to competition can be done on time plus an ideal package rider + bike on a Championship you can win, if not, don't start anything (e.g like Aprilia last year )


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post #10 of 45 (permalink) Old 05-06-2011, 06:53 AM
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Quote:
Originally Posted by Jeffy View Post
Dude... Is this the Yves I used to ride with here in Portland with Chris Ancien? Jeff Lind here Bizzotch!
Jeff ! How are you man ? Like your choice in bikes

Check your PM

Yves
Fort Worth, TX
Bend, OR

2010 Ducati 1198R Corse LE
2008 MV F4 312R (RG3, X-Bikes ECU,...)
2005 Ducati 999S
2004 Ducati 998S Final Edition

Last edited by yves; 05-06-2011 at 07:52 AM.
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