Lance Armstrong facing big financial hit

24 Oct 2012, 9:01 am   -   Source: AAP
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Moves have begun to take back Lance Armstrong's prize money and other pay-outs following world cycling's decision to strip him of his Tour de France wins.

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World cycling's decision to strip Lance Armstrong of his record seven Tour de France wins could cost the shamed US rider millions, as calls mounted for tougher action to restore the sport's shattered image.

The International Cycling Union (UCI) on Monday gave its backing to a damning US Anti-Doping Agency (USADA) dossier that placed the Texan at the heart of the biggest doping program in sport, erasing his record back to August 1, 1998.

But as the 41-year-old's major triumphs were scrubbed from the history books and officials vowed to up the fight against banned substances, moves began to recoup his prize money, bonuses and other pay-outs.

Tour de France director Christian Prudhomme is seeking repayment of nearly 2.95 million euros ($A3.76 million) from Armstrong's successes in cycling's most gruelling and celebrated race between 1999 and 2005.

During that period, Tailwind Sports, the parent company of his US Postal Service team, took out a policy with sports insurance firm SCA Promotions, paying a premium to cover bonuses paid for his Tour victories.

SCA withheld a $US5 million ($A4.9 million) bonus due after Armstrong's sixth Tour win in 2004 because of doping allegations in Europe. The rider took the Dallas, Texas firm to court and was awarded the cash, plus $US2.5 million in legal fees and interest.

The firm's lawyer, Jeffrey Dorough, told AFP: "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."

The Velonation cycling news website reported that SCA paid out a total of $US12 million in bonuses to Armstrong over the years. Dorough said he could only confirm the lower figure but added: "Any sum that was paid by SCA would be in play."

Elsewhere, Britain's Sunday Times newspaper has said it is considering legal action against Armstrong to recover money spent defending a defamation case over doping allegations, which was settled in 2004.

The settlement was not disclosed but reports have suggested the case cost the weekly STG1 million ($A1.6 million).

Armstrong, who reportedly has an estimated net worth of $US125 million, has already taken a financial hit, as high-profile sponsors including sportswear firm Nike have dropped him from marketing campaigns.

Business magazine Forbes said on its website on Monday that Armstrong could lose $US15 million a year in endorsements and speaking fees.

On the legal front, he could yet face court action for perjury after swearing under oath that he never doped. The maximum penalty is up to 30 years in prison and a fine of up to $US1.5 million.

The Armstrong case has cast a dark cloud over world cycling, with its most recognisable star fallen from grace and the USADA dossier outlining the extent and scope of the use of banned substances in the sport in the late 1990s and early 2000s.

Current and former cyclists have said they feel cheated by Armstrong, who battled back from life-threatening cancer to stage what was billed at the time as the greatest comeback in sport.

Five-time Tour de France winner Miguel Indurain, though, said he still believed Armstrong was innocent, even as another of the American's team-mates, Norwegian Steffen Kjaergaard, admitted taking the banned blood booster erythropoietin (EPO).

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