Lance Armstrong’s potential $12 Million problem
When he was at the top of the cycling world, Lance Armstrong made millions from riding his bike and winning the Tour de France. When he confessed to cheating with performance-enhancing drugs, people were upset. Some of the people most upset were those who paid bonuses every time he won. Now that Lance Armstrong has confessed to his cheating, some people want their money back. And now they have been given the legal permission to try to get their money back.
Dallas based company SCA Promotions paid $12 million to Lance Armstrong for three of his seven Tour de France victories. After the cyclist’s confession, they sued to get their money back. They also sued for the right to collect penalties imposed since Armstrong lied under oath.
The two parties reached an arbitration settlement in 2006 as charges began to surface that Armstrong had cheated. At the time, Armstrong was one year removed from winning his seventh straight Tour de France. During the proceeding, Armstrong denied under oath that he ever used performance-enhancing drugs.
During 2013, Lance Armstrong confessed that he had in fact cheated and used performance-enhancing drugs during his Tour de France domination. SCA Promotions went back to the arbitration panel requesting their settlement be reopened. In October, the panel voted 2-1 to allow a review of the agreement.
Armstrong’s attorneys argued in acourt last week that the panel no longer had authority to review the settlement once it was signed — even if SCA could prove Armstrong lied under oath. On Thursday, Judge Tonya Parker disagreed with Armstrong’s legal team, clearing the way for the panel to review the settlement.
Two years before his first Tour de France victory, Lance Armstrong started the Lance Armstrong Foundation. The Foundation supports people with cancer and was formed shortly after Armstrong’s own battle with cancer. In October, 1996 he was diagnosed with testicular cancer that later spread to his brain, lungs and abdomen. By February, 1997 he was declared cancer free. Less than a year and a half later, Armstrong started his seven year run as Tour de France champion.
Because of his confession, Lance Armstrong was stripped of all seven Tour de France titles and received a lifetime ban from the sport. He was also stripped of a Bronze Medal he won at the 2000 Summer Olympic Games in Sydney, Australia. As of November, 2012, the Lance Armstrong Foundation changed their name to The Livestrong Foundation. Armstrong was forced to resign as chairman of the Foundation as well as from the board of directors.