Serious question why/how is the sport on the verge of financial meltdown?
Where does cycling revenue come from?
For the teams its sponsorship and prize money. Prize money is relatively small even for marquee events and its normally split amongst the riders. Sponsorship is hard to come by. Cycling is still a minority interest sport and therefore sponsor exposure is limited. The reputation of the sport is still tarnished and lurches from one doping crisis to another - hardly attractive ground for brands that spend years and millions developing their image. Look at the recent churn in teams at the World Tour level nevermind the lower leagues. The Tdf is also so dominant that sponsors consider that exposure is only mainstream for 3 weeks of the year - that represents poor value.
Unlike other sports its almost impossible for teams to leverage revenues from a fan base because its impossible for fans to pledge support to a team when its identity is constantly changing. You also have the strange quirk that fans don't see it as cool to wear team kit so shirt revenues a'la football for example is irrelevant.
Consider the churn in recent seasons
Rabobank withdraw, Belkin come in for one season > team disbands
Europcar manage to secure one more year from title sponsor but cant raise enough money for World Tour status so have to drop out.
Liquigas Cannondale forced to merge with Garmin cutting the roster and shedding another 30 riders out the World Tour level.
Eusakatel Euskadi - lose title sponsor and can't do a deal with Fernando Alonso to take over. Team disbands
Vacances Soliel - title sponsor pulls out and can't be replaced. Team disbands
Thats ignoring the constant change in title sponsor for the other teams. Argos Shimano > Giant Alpecin. Radio =shack Nissan > Trek Factory Racing. etc
ASO hold exclusive broadcast rights over the major tours and one day races. RCS are the Italian equivalent for the Giro. Races are expensive to put on with towns and cities, provinces helping fund the race by bidding for stage finishes in the hope it boosts tourism. Its expensive and ASO and RCS are not swamped with applicants due to the financial implications involved with the logistics. The organisers of the other races in the calendar are also battling a very challenging business model to put on the events. There is even doubt about the future of staples such as Paris Nice
A key fact is also that cycling is free to watch. There is no spectator revenue as in most other sports. TV revenues are largely retained by ASO and RCS which is something that the teams are unhappy with as they see that as revenues are increasing this is not being shared with the teams to support the development of the sport.
The UCI made a profit of £1,3m in 2013. Not bad but not a lot to fight doping and stay ahead of the cheaters let alone challenge the likes of Astana in the Court of Arbitrations for Sport. The CIRC report cost about £2m and told us naff all!!
So all in all you can see that cycling is not an easy sport to sustain.