After having lost his Tour de France titles, the cyclist’s insurer is now demanding their money back.
Though the loss of Lance Armstrong’s seven Tour de France titles when the International Cycling Union (UCI) took them away has been making sports headlines, the cyclist’s insurer is now making insurance news by demanding their money back.
SCA Promotions had covered Armstrong’s performance bonuses following the fourth, fifth, and sixth wins.
Now that those victories have been taken away, Jeffrey M. Tillotson, the lawyer for SCA Promotions, has stated that “We will make a formal demand for return of funds.” Tillotson also went on to say that “If this is not successful, we will initiate formal legal proceedings against Mr Armstrong in five business days (Monday 29 October).”
This insurance news is based on the policy that was purchased by Tailwind Sports.
That organization owns the U.S. Postal team. The policy was meant to provide coverage for the performance bonuses that Armstrong would receive if he was to win the Tour de France titles. At first, SCA Promotions had refused to make a payout of the funds that covered the sixth Tour de France win bonus for Armstrong, back in 2004. The amount totaled $5 million and was initially withheld because Armstrong had been accused of not being clean during the race.
In 2005, Armstrong made insurance news by taking SCA Promotions to a Dallas arbitration hearing and won, as his policy specifically stated that the funds would be due to him as long as he was the “official winner” of the Tour de France. This forced the insurer to have to pay a total of $7.5 million (the initial $5 million amount, plus interest and legal fees worth $2.5 million).
Today, SCA Promotions is back in insurance news again, and, according to their lawyer, is seeking a much larger amount from Armstrong. Tillotson stated that “The total amount we would be seeking back from Mr. Armstrong exceeds $11 million.” The reason, is that they are also seeking the bonuses that the cyclist received for the fourth and fifth Tour de France wins, as well.