Grand Slam Quest Brings New U.S. Open Advertisers Luck Getting More Comfortable With Endorsements Saints OK With Mercedes-Benz' Falcons Move Arizona To Only Take In $500K From Nike Extension Marketplace Roundup Russell Wilson Clarifies Water Comments Brands Activating Around U.S. Open Across N.Y. Sprinter Prandini Signs First Pro Deal With Puma Subway Reducing Reliance On Spokespeople NFLPA Unveils T-Shirt Line Honoring FDNY
SBD/October 29, 2012/Marketing and Sponsorship
UCI Asks Lance Armstrong To Return Nearly $4M In Tour De France Purse Money
Published October 29, 2012
SPINNING OUT: Sullivan noted for a “big company like Nike,” the loss of Armstrong “is no big deal.” Sullivan: “But I expected more anger from smaller companies like FRS, which makes an energy drink that was closely associated with Mr. Armstrong.” Armstrong’s image, until “recently, was featured prominently in the company’s advertising.” FRS CEO Carl Sweat said, “It’s awfully difficult to not be very disappointed, having believed in all aspects of the relationship. Two years ago, before any of this was out, it would have been a different conversation. He helped us build our brand.” Sweat said that the company was now using Jets QB Tim Tebow, who has a “squeaky-clean reputation, as its main pitchman.” Sullivan wrote there are "two areas, though, where Mr. Armstrong is at risk of losing a little or a lot of money.” The case against him that is “getting the most attention is being pursued by SCA Promotions, a company in Dallas that insures potentially costly but unlikely events.” SCA Corporate Counsel Jeffrey Dorough said that the firm was “sending a letter to Mr. Armstrong demanding that he return $12 million -- the $7.5 million and an additional $4.5 million it paid for a previous victory." Meanwhile, Sullivan wrote, "The biggest threat to Mr. Armstrong’s wealth is a False Claims Act lawsuit against him and Tailwind Sports, the limited liability corporation that owned his team” (N.Y. TIMES, 10/27). In Boston, Bob Ryan wrote, “Over and above the personal prestige and financial damage he has done to himself, Armstrong has besmirched the entire sport of cycling” (BOSTON GLOBE, 10/28).