The Financial Challenges of Running a Professional Cycling Team: Lessons from the Hess Cycling Collapse

The Rise and Fall of Hess Cycling: Ambition Meets Harsh Reality

In late 2023, Hess Cycling emerged with high hopes and bold ambitions. The team’s co-owner, Rolf Hess, envisioned building a British women’s team capable of winning major races, including the Tour de France Femmes. With an initial budget of 750,000 euros and plans to grow substantially, the team sought to combine athletic development with innovative sponsorship strategies centered around promoting riders as individual brands.

However, the promising start quickly unraveled. Despite the ambitious vision, Hess Cycling struggled financially from the outset. Riders and staff experienced delayed payments and unreimbursed expenses. Equipment suppliers and mechanics reported unpaid bills and logistical challenges, such as last-minute vehicle hires, which added operational strain.

The situation worsened when the team’s title sponsor withdrew early in 2025 following negative media coverage related to a civil claim against one of the team’s directors, unrelated to the cycling operations. Although the allegations were denied, the sponsor’s exit left Hess Cycling with a significant funding gap. Despite the Hess Sports Group injecting over £200,000 to keep the team afloat temporarily, the financial shortfall proved insurmountable, leading to the team’s collapse within months.

Structural Financial Challenges Unique to Professional Cycling

Unlike many other sports, professional cycling teams do not receive revenue from television rights. These rights are controlled by race organizers such as Amaury Sport Organisation (ASO), which runs the Tour de France and other major events. Consequently, teams rely heavily on sponsorship deals to cover costs, including rider salaries, equipment, travel, and staff wages.

This sponsorship-dependent model creates significant vulnerability. If a sponsor pulls out, the team’s financial foundation can quickly crumble, as there are few alternative income streams. The escalating costs of maintaining competitive performance, including investments in technology and training, further pressure budgets.

The lack of a robust developmental tier compounds these issues. While the elite Women's World Tour is expanding, the lower-tier continental teams—which serve as a talent pipeline—often operate on precarious budgets. Hess Cycling never progressed beyond the continental level, limiting its competitive success and appeal to sponsors.

The dominance of a few organizations like ASO in controlling race rights also hinders teams from negotiating a share of global media revenues. Efforts to create a more equitable economic model, such as the 'one cycling' initiative aimed at redistributing TV rights income, have yet to materialize, leaving teams financially exposed.

The Human Cost: Riders and Staff Left Vulnerable

The collapse of Hess Cycling left many riders and team members out of pocket, some waiting over a year for owed payments. One former rider described the experience as disillusioning, noting that the team appeared designed to benefit a single individual rather than the athletes themselves.

Mechanics and other support staff also faced financial and logistical hardships, often covering expenses out of pocket and scrambling to meet race-day demands without adequate support. The lack of formal protections and the fear of jeopardizing future career opportunities discourage many riders and employees from speaking out.

This power imbalance is exacerbated by the athletes’ aspirations and the competitive nature of professional cycling. Many riders accept unfavorable conditions in the hope of a breakthrough, creating a dynamic where teams hold disproportionate leverage. The absence of strong contractual safeguards and industry-wide standards leaves personnel vulnerable to exploitation.

Some team management figures argue that expectations may be unrealistic given the rapid growth of women’s cycling and the financial pressures involved. However, critics emphasize the need for better governance and support structures to protect those working within the sport.

Looking Forward: Potential Paths to Financial Stability in Cycling

The Hess Cycling case underscores the urgent need for structural reforms in professional cycling’s economic model. Securing a share of television rights revenue could provide teams with a more stable income base, reducing reliance on volatile sponsorships.

The Union Cycliste Internationale (UCI) has initiated consultations on key topics including the economic model, calendar, and fan engagement, signaling recognition of these challenges. Greater collaboration between race organizers, governing bodies, teams, and sponsors could foster a more sustainable ecosystem.

Developing a stronger, well-funded developmental tier would also help create a pipeline of talent and provide a more solid foundation for teams. This could mitigate the financial risks associated with rapid expansion and high operational costs.

Finally, improving contractual protections and financial transparency within teams would safeguard riders and staff, ensuring they are fairly compensated and supported. Establishing industry-wide standards and enforcement mechanisms could address the power imbalances currently disadvantaging athletes and employees.

What this means

The story of Hess Cycling is a cautionary tale about the fragile financial foundations underpinning professional cycling teams. While passion and ambition drive the sport forward, the current economic model leaves teams exposed to sudden funding losses and operational difficulties. For cycling to thrive, stakeholders must collaborate to create a more equitable and sustainable financial framework that protects riders, staff, and the future of the sport. Only through such reforms can the dreams of teams and athletes be realized without the looming threat of financial collapse.