Lance Armstrong Forced to Pay £6.5m to SCA Promotions for Lying about using Performance ....

The Telegraph (U.K.) ^ | February 16, 2015 | Tom Cary

[Cecily]

Lance Armstrong has been ordered to pay $10 million (£6.5m) to SCA Promotions, the Dallas-based company that paid him around $12m in bonuses during his career. Armstrong won seven Tour de France titles between 1999 and 2005 before being stripped of all of them in 2012 for doping.

The dispute with SCA dates back to 2005 when the firm withheld bonuses due to concerns that the Texan had cheated. SCA eventually reached an out-of-court settlement with Armstrong, paying him $9.5m plus $2.5m in costs. After ­Armstrong’s cheating was exposed, SCA sued to get its money back. The company has a separate lawsuit ­pending against Armstrong and his agent Bill Stapleton in Dallas.

The defeat on Monday is the latest blow for Armstrong, who has seen a succession of sponsors, including Trek, Oakley and Nike, ­terminate their contracts with him. There is also a potentially extremely costly federal case pending in the United States which was initially brought by the former US Postal rider Floyd Landis and which has been joined by the US Department of Justice.

[Cecily]

I wonder how many of Lance's sponsors knew all along he was doping, and know today which of the cyclists they sponsor are doping. Lance did wrong, but this "we're shocked, shocked!" stance by those associated for years with him is questionable.

[Baynative]

Bike Ping

I'm gonna guess that most of the sponsors knew and didn't care as long as he didn't get caught and they weren't tarnished. It was part of the culture and while Lance has been stripped, humiliated and punished, the records of Pantani, Riis and Contador still stand.

The thing about this court decision that bothers me is that he was paid for exposure and the use of his name and likeness; to bring customers to the sponsoring concerns. He did that. It seems they would have to show that they lost customers and revenue which looks a bit hard to prove now.

[StoneWall Brigade]

Seriously

[gr8eman]

Yep...if Lance was smart he would buy expensive diamonds and disappear.

[GrandJediMasterYoda]

Lance, Hitlery and Brian Williams should get together and have a lying contest. I think Hitlery would win as she’s been lying non-stop since the early 70s, a lot more experience.

[a fool in paradise]

So the post office did cross-marketing promotions with Lance.

Did they get promotion from their sponsorship?

Can you go back and ‘correct’ that sponsorship?

I understand clauses and contracts, but they paid for face time and marketing and that’s what they got. Their agency is not harmed through their sponsorship and apart from “future” sponsorship deals, there is no impact.

How was the post office harmed?

[a fool in paradise]

Exactly, I’ve thought the same and finally posted a comment to that end, and then I see your post.

[laconic]

SCA refused to pay Armstrong bonuses on the basis that he had drugged and didn’t win the Tour fairly. He had the gall to contest them on this and lied his way through the testimony; the court ordered SCA to pay these bonuses. So they never believed he was honest, unlike other sponsors like Trek which grew to a one billion dollar bike company largely based on his endorsements.

[a fool in paradise]

Since all of the top bicyclists were using performance enhancers, do the titles go to the #8 or #12 cyclists?

[patriotspride]

The thing about this court decision that bothers me is that he was paid for exposure and the use of his name and likeness; to bring customers to the sponsoring concerns. He did that. It seems they would have to show that they lost customers and revenue which looks a bit hard to prove now.

---

Agree. To me they need to prove he didn’t deliver $$$ before they ask him to pay back. They took the risk at the time that he was “ clean” and therefore shouldn’t expect payback after the fact.

[a fool in paradise]

So the bikes are only good if you use steroids?

Meanwhile I still wait for the day Congress investigates police officers using steroids. ‘Roid rage is a thing. So is abusing caffeine (no doz laced coffee, etc.).

[Yogafist]

Probably none. That is not the type of information you let fly around. The more people who know, the greater chance it gets out. Suspicions? Probably.

I initially felt for Armstrong, but after seeing that documentary on him, he was a class A jerk, and really deserves what is coming to him.

[napscoordinator]

There are two athletes I can’t stand and they are Michael Phelps and Lance Armstrong so anything negative happens to them make me a happy person. So far they have not disappointed.

[USMCPOP]

"So the bikes are only good if you use steroids?"

"Steroids, Ha, Ha."

[Veggie Todd]

Steering a bike is not the only thing Pee Wee does with one hand.

[USMCPOP]

“Steering a bike is not the only thing Pee Wee does with one hand.”

Notice the strong right-hand grip.

[lacrew]

What’s most perplexing to me is that the USPS sponsored a team at all. Some products need constant reinforcement...Soft Drinks, Beer, etc.

But the post office? I can understand their current ads for package pick up service, or even ads about flat rate boxes - they introduce a new service to the consumer.

But reinforcement style advertising? Am I supposed to be watching the Tour de France and think: “Hey, during the next commercial, I need to mail a letter”?

I’d say the majority of that sponsorship money was wasted years ago.

[a fool in paradise]

Maybe it was to encourage more stamp ‘collecting’ and purchase of t-shirts, gift pads, and all of the other what nots that clutter a post office these days.

[SouthParkRepublican]

In the case of SCA I think this judgment is fair as it was basically a seven million dollar net loss insurance payout to Armstrong. When you factor in the legal expenses associated with the ensuing lawsuit I’m surprised it’s not a bit more. I think they were looking for 12 mil.

I know that he’s already lost a few other minor ones: Acceptance Insurance being about 3 million and whatever the settlement amount was with the Sunday Times. The larger one still lingering out there is the Federal whistle blowers suit. That one is probably going to cost dear and who knows who else is going to come out of the woodwork. Frankly, I’m surprised that that perennial whiner Lemond has not figured out some way to try and weasel some cash out of Lance as a result of this.

I agree that the stripping of Lances wins is over the top and I think has had a negative effect on pro cycling. Heck, Pantani is pretty much deified in Europe and I don’t know of anyone who believes that guy was riding clean. I wish they had just done what every other sport does and put an asterisk next to his wins.

Thanks for the ping.

[deport]

We may never know what the sponsors had in the contract regarding a clean record.
I’d bet most of them if not all had something.