Make us your home page
Instagram

Lance Armstrong may lose up to $200 million in future earnings

Lance Armstrong carries a U.S. flag during a victory parade on the Champs-Elysees in Paris after winning his seventh consecutive Tour de France cycling race in July 2005. He has been stripped of his Tour de France titles. 

Associated Press (2005)

Lance Armstrong carries a U.S. flag during a victory parade on the Champs-Elysees in Paris after winning his seventh consecutive Tour de France cycling race in July 2005. He has been stripped of his Tour de France titles. 

Lance Armstrong may lose as much as $200 million in future earnings potential, more than the wealth he accumulated in a championship cycling career now gutted by revelations of doping.

Just days after he was stripped of a record seven Tour de France titles, Armstrong is facing demands that he repay up to $16 million in purses and bonuses from those victories.

But his lost earnings potential far outpaces that, said sports marketing analysts. With a net worth estimated by Forbes at $125 million, the 41-year-old American would have had a prosperous future as an endorser and motivational speaker had the evidence gathered by the U.S. Anti-Doping Agency not surfaced, according to Patrick Rishe, an economics professor at Webster University in St. Louis. Nike and Armstrong's other sponsors deserted him after the USADA's report.

"To think that he would be able to make $15-$20 million annually over the next 10 years is not out of the question," Rishe said in a telephone interview. "That puts his loss in potential future earnings at between $150-$200 million."

The French cycling federation, which distributes Tour de France prize money on behalf of the race organizer, the Amaury Sport Organization, said it plans to cooperate with the family-owned company to reclaim the $3.8 million (2.95 million euros) it estimates Armstrong won during his career. SCA Promotions Inc., which insured bonuses Armstrong received for winning the race from 2002 through 2004, said two days ago it will seek almost $12 million.

Armstrong earned $17.5 million in endorsement and speaking fees in 2005, when he won his last Tour de France, Sports Illustrated reported. That number grew to $21 million in 2010, Forbes said. The revenue gain as his career declined is an indication that Armstrong, who survived cancer and started the Livestrong foundation that has pumped what it says is more than $470 million into helping others with the disease, would have remained a potent corporate spokesman and health advocate.

Now that career is in the past.

"I can't imagine anyone being able to make a positive out of a relationship with him at this point," said Jim Andrews, senior vice president of content strategy at IEG, a sponsorship consultant.

Pauline Juliard, a spokeswoman for the French cycling federation, said the group has not begun proceedings to try to recoup money paid to Armstrong. It would be the first time it has asked for money back from a rider, she said.

Armstrong sued SCA for failing to pay his $5 million 2004 bonus. The company settled the case, paying Armstrong that money and $2.5 million in interest and court costs. SCA will work quickly to try to regain almost $12 million from Armstrong, said Jeffrey Tillotson, an attorney for the company.

An email to Tim Herman, Armstrong's attorney, seeking comment about the French cycling federation's plans, SCA and Armstrong's endorsement deals wasn't immediately returned.

Lance Armstrong may lose up to $200 million in future earnings 10/24/12 [Last modified: Wednesday, October 24, 2012 11:02pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. ReliaQuest's benevolent hackers try to make companies more secure

    Corporate

    TAMPA — Their goal is to get in. Past a security desk, through a firewall, into a system they shouldn't have access to. Sometimes they'll look like a regular person in the lobby who innocently forgot their access badge. Most times they won't be seen at all, remotely and quietly prodding a company's systems from a …

    Angelo Castellano of Tampa works at his desk at ReliaQuest | | [CHARLIE KAIJO, Times]
  2. Despite soaring home prices, Tampa Bay still an affordable market

    Real Estate

    Times Staff Writer

    Finally, some good news for Tampa Bay home buyers. Despite rising prices, the bay area remains relatively affordable compared to many other parts of the country.

    Despite rising prices, the bay area remains relatively affordable compared to many other parts of the country. [Associated Press file photo]
  3. National economy off to a luckluster start this year

    Business

    WASHINGTON — The U.S. economy got off to a lackluster start during the first three months of 2017, though it enjoyed more momentum than earlier estimates indicated.

    he U.S. economy got off to a lackluster start during the first three months of 2017, though it enjoyed more momentum than earlier estimates indicated.
[Associated Press file photo]
  4. Last steel beam marks construction milestone for Tom and Mary James' museum

    Growth

    ST. PETERSBURG — Tom and Mary James on Wednesday signed their names to the last steel beam framing the 105-ton stone mesa that will be built at the entrance of the museum that bears their name: the James Museum of Western and Wildlife Art.

    The topping-out ceremony of the James Museum of Western & Wildlife Art was held Wednesday morning in downtown St. Petersburg. Mary James (from left), husband Tom and Mayor Rick Kriseman signed the final beam before it was put into place. When finished, the $55 million museum at 100 Central Ave. will hold up to 500 pieces of the couple's 3,000-piece art collection. [Courtesy of James Museum of Western & Wildlife Art]
  5. Heights Public Market to host two Tampa Bay food trucks

    Business

    TAMPA — The Heights Public Market announced the first two food trucks for its "rotating stall," which will feature new restaurants every four months. Surf and Turf and Empamamas will be rolled out first.

    Heights Public Market is opening this summer inside the Tampa Armature Works building.
[SKIP O'ROURKE   |   Times file photo]