LeMond Files Suit Against PTI Holding For Breach Of Contract

LeMond Taking PTI Holding To Court

Greg LeMond’s LeMond Cycling Inc. has sued New York-based bike accessory manufacturer PTI Holding in U.S. District Court for breach of contract after it replaced LeMond’s brand with Schwinn in ‘03, according to Shannon Prather of the ST. PAUL PIONEER PRESS. After signing LeMond to a multimillion-dollar deal in ’99 to “put his name on a series of mass-marketed bike gear,” PTI “tried to dump the 10-year contract in 2003 through an e-mail that concluded LeMond was no Lance Armstrong.” But LeMond claimed that a “lack of marketing – not Armstrong’s rising star – tanked his product line designed for discount retailers, including Target and Costco.” LeMond was to be paid a minimum of $500,000 annually under the deal and hoped his line would generate $30-50M in revenue. LeMond already had a “successful high-end bicycle brand made by Trek when he signed the accessories deal,” and said that he took a “calculated risk when he agreed to put his name and face on moderately priced bike products.” Target wanted PTI to produce a Target brand of gear. PTI agreed to give Target “exclusive rights to sell LeMond bike products,” which occupied “half the aisle, and PTI would produce a cheaper brand to fill the other half.” LeMond said that “consumers weren’t fooled.” LeMond: “It was a huge price difference for the same product” (ST. PAUL PIONEER PRESS, 2/1).