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Old September 17th 04, 05:09 AM
Isidor Gunsberg
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Gary wrote in message ...
From the Dallas Morning News:

Lance sues to get bonus for Tour victory

12:10 AM CDT on Thursday, September 16, 2004

By TERRY MAXON / The Dallas Morning News

A Dallas-based insurance company is balking at paying cyclist Lance
Armstrong a $5 million bonus for winning the Tour de France, saying it
wants to look into allegations that Armstrong used illegal
performance-enhancing drugs.

SCA Promotions Inc. said it has paid the $5 million into a custodial
account until it determines whether "new allegations" made against
Armstrong are true. "We're just asking the questions," SCA attorney John
Bandy said Wednesday.

Armstrong and Tailwind Sports Inc. filed a lawsuit in Dallas County
state district court Tuesday seeking to make SCA pay up. As required in
its contract with SCA, they asked to send the claim to arbitration, and
Bandy said SCA supports that move.

Tailwind owns the U.S. Postal Service Pro Cycling Team and has Armstrong
as its leading member. In 2001, it promised Armstrong a series of
bonuses based on the number of consecutive Tour victories.

Before the 2001 Tour de France, Tailwind paid SCA a $420,000 insurance
premium to pay the bonuses if Armstrong earned them.

SCA paid a $1.5 million bonus in 2002 after Armstrong won his fourth
Tour, and another $3 million after he won again in in 2003. But SCA
withheld the $5 million bonus Armstrong was to receive after winning a
sixth straight Tour this summer.



Insurance, what a scam! Hehe... I wonder who the actuary was for
SCA, who set the premium at only $420,000 I'm sure that Tailwind
could have procured similar "Insurance" from English bookmakers,
although I doubt that the odds against Armstrong success would have
been set so high (i.e. Tailwind would have had to pay a higher
"premium") One wonders if Tailwind is insured through the 2005 TdF.
Given the way that the payouts have escalated, it could be quite
interesting. Since Lance now has to pay alimony, and keep Cheryl Crow
in the manner to which she is accustomed, he may still be strongly
motivated by the prospect of winning millions more.


Bandy said SCA learned of allegations in a newly published book, L.A.
Confidential: The Secrets of Lance Armstrong, that quoted a former team
employee saying Armstrong had used a banned blood booster and asked her
to dispose of bags of syringes.

"We believe the contract says we have to pay only if the event of a
valid claim," Mr. Bandy said.

In its suit, the plaintiffs said SCA has asked Armstrong and Tailwind to
provide all of Armstrong's medical records and other records. Bandy said
SCA will ask the arbitrator to order those records handed over.

The plaintiffs said SCA didn't have the right to question his Tour
victories, which were upheld by cycling authorities.

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