Last week, Lance Armstrong lost an arbitration battle in the amount of $10 million over a fraud dispute with a Dallas based promotions company.
Armstrong and former team owner Tailwind Sports Corp. were on the losing end of a 2-1 arbitration decision that ruled in favor of promotions company SCA Promotions. SCA Promotions had previously paid Armstrong bonuses for victories in the Tour de France, but then took legal action to recover them once doping allegations arose. The parties originally agreed in 2005 to a $7.5 million settlement, but SCA sought this arbitration after Armstrong admitted to PED use on Oprah. The sole dissenting arbitrator, hired by Armstrong’s camp, claimed the award to be unprecedented.
Armstrong has suggested that he will not be complying with the order, so SCA sought to have the order confirmed in a Texas state court. With confirmation by the court, Armstrong will have difficulty appealing the decision as courts give arbitrators a significant amount of deference in their rulings. Armstrong is embroiled in legal trouble after his admission to using performance enhancers, including a federal whistleblower case brought by former teammate Floyd Landis, which could equate to Armstrong owing over $100 million.