Radio Shack Has Jumped The Shark

For those not following, Lance Armstrong has announced he’s leading a Radio Shack-sponsored team for 2010. He announced it in the middle of The Tour, which is well below the benchmark of how riders traditionally handle next-year contracts.

This is the pinnacle of irrelevance. An electronics store that doesn’t sell much electronics and a bike racer whose got maybe a few more podium spots in those aged legs. Lance, do what most old racers are doing. Just manage the team.

A couple of days later, Radio Shack announces terrible Q4 earnings. Story here Their valuation gets hammered.

This is an expensive marketing decision. How are they going to grow out of this one? More mobile phone sales? Flat screen TV’s? Support contracts? Where are the new customers? Cyclists? If you aren’t out of your Radio Shack stock already, the dead cat should bounce a little in the near future.