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Functional Threshold Power (FTP) is a key metric for cyclists, representing the highest power output they can sustain for an hour. It acts as a training benchmark and is linked to the body's lactate threshold, where lactate production equals its reabsorption, marking a turning point in performance. The podcast emphasizes that while FTP is crucial, it is not the sole determinant of race success; factors such as racing strategy, energy management, and bike handling skills also play critical roles. A higher FTP allows cyclists to better manage their efforts during races, but they must learn to use this power strategically.