After doping scandal, donors line up for compensation from Armstrong0
It seems like Lance Armstrong’s glory days are over. The world cycling commission’s decision to strip the cereal box hero of his seven Tour de France wins will cost the once famed bicyclist millions, according to just compensation lawyer experts. The International Cycling Union recently accepted US Anti-Doping Agency report and confirmed the biggest doping scandal in the sport’s history, erasing his record back to August 1, 1998.
It doesn’t end there. Just as the 41-year-old’s major triumphs were scrapped off the history books and officials vowed to intensify the fight against banned substances, former donors and sponsors have also begun to demand his prize money, bonuses and other pay-outs, asking for compensation for their deception.
Reports have said the Dallas insurance company SCA Promotions is demanding the return of millions of dollars in bonuses paid to Armstrong. ESPN commentator David Munson has also said his US Postal Services team will likely to want some of their investment back, and they’re not the only ones.
Even Dutch bank Rabobank was not awaiting any further review. It announced Friday that, after 17 years of sponsoring professional cycling teams, it will end its program at the end of the year.
Rabobank said it had previously seen elite cycling as a good fit with the company, its clients and its employees. But that has changed since the USADA report alleging doping by Armstrong and others.
The Tour de France also wants it’s prize money returned.
All these factors are combining into a tsunami of horror for the former cycling all star supposed prodigy. Not only has the doping scandal created a public relations nightmare for Armstrong, but it will likely cost him millions of dollars, according to just compensation attorney experts.
Armstrong, who reportedly has an estimated net worth of $125 million, has already taken a financial hit, as high-profile sponsors including sportswear firm Nike have dropped him from marketing campaigns. Business magazine Forbes said on its website on Monday that Armstrong could lose $15 million a year in endorsements and speaking fees.
SCA withheld a $5 million bonus due after Armstrong’s sixth Tour win in 2004 because of doping allegations in Europe. The rider took the Dallas, Texas, firm to court and was awarded the cash, plus $2.5 million in legal fees and interest.
On the legal front, he could yet fact court action for perjury after swearing on oath that he never doped. If any charge is pursued, the maximum penalty is up to 30 years in prison and a fine of up to $1.5 million.