SCA Promotions Wants Armstrong To Repay Bonus Millions

LOS ANGELES, Oct 22, 2012 – Dallas insurance company SCA Promotions
is demanding the return of millions of dollars in bonuses paid to Lance
Armstrong now that the shamed cyclist’s Tour de France victories have been
expunged.

“Mr. Armstrong is no longer the official winner of any Tour de France races
and as a result it is inappropriate and improper for him to retain any bonus
payments made by SCA,” Jeffrey Dorough, general counsel for the firm, said
Monday in a telephone interview.

On Monday in Geneva, the International Cycling Union (UCI) officially
backed the US Anti-Doping Agency’s decision to effectively erase Armstrong’s
cycling record, including the seven Tour de France titles he won from
1999-2005.

USADA this month released a devastating dossier on Armstrong, putting him
at the heart of the biggest doping programme in the history of sport.

Dorough confirmed that SCA was seeking $7.5 million paid out to Armstrong
after a 2006 arbitration proceeding, which included a $5 million bonus as well
as legal fees and interest.

During Armstrong’s era of dominance, US Postal Service team parent company
Tailwind Sports took out a policy with SCA, paying a premium to cover bonuses
paid to Armstrong for his Tour de France victories.

When SCA withheld a $5 million bonus due after Armstrong’s sixth Tour de
France win in 2004 because of the doping allegations made in the book “LA
Confidential,” Armstrong took successful legal action.

Armstrong won that case, on the basis that the original contract between
SCA and Tailwind Sports did not include any stipulations about doping.

It has been reported reported that SCA in fact paid a total of $12 million to
Armstrong in bonuses over the years.

“The only figure I can confirm is the $7.5 million paid to Mr. Armstrong in
2006 pursuant to the arbitration,” Dorough said, but added: “Any sum that was
paid by SCA would be in play.”

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