Armstrong faces action over Tour bonus

Lance Armstrong

A Texas insurance company is taking legal action to recover 7.5 million dollars in bonuses from cyclist Lance Armstrong.

SCA Promotions paid a performance bonus paid to the American after he won his sixth Tour de France in 2004.

Armstrong was stripped of his seven Tour de France titles and banned for life by the International Cycling Union on Monday.

SCA lawyer Jeffrey M Tillotson told

BBC Sport : “We will make a formal demand for return of funds.” “If this is not successful, we will initiate formal legal proceedings against Mr. Armstrong in five business days (Monday, October 29).” The insurance policy was taken out with SCA Promotions by Tailwind Sports, which then owned the US Postal team, to cover performance bonuses that would be due to Armstrong if he won the Tour.

Following doping claims against Armstrong, SCA refused to pay out the money. Armstrong won legal action against the company, which was forced to pay the bonus of 5 million dollars plus 2.5 million dollars in interest and legal fees.

Tour de France director Christian Prudhomme had said on Monday that under UCI rules Armstrong would have to pay back his Tour prize money estimated at around 3.85 million dollars.

The World Anti-Doping Agency (WADA) meanwhile welcomed the UCI decision on Armstrong to ratify the sanctions taken earlier this month by the United States Anti-Doping Agency (USADA).

“WADA is encouraged that the UCI feels it can use this case as a catalyst to thoroughly clean up its sport and remove any remaining vestiges of the doping programs that have clearly damaged cycling,” its president, John Fahey, said in a statement.

Under its own rules, WADA has the right to lodge an appeal to the Court of Arbitration for Sport.

“WADA will announce that decision in due course, and will continue to examine the evidence encouraged by the fact that the biggest doping scandal in the history of sport is close to reaching a correct conclusion,” Fahey said.