Armstrong's financial situation

[thehog]

I wonder if all the rubbernecks on this board who argued with me about his financial situation will apologise.

The guy has no cash. Fabani must be laughing all the way to the bank.

 

[trailrunner]

That is what I always thought it would come down to, his debt situation. If he owns his properties free and clear then he has assets that can be disposed of to raise a lot of cash.

Agreed. If he was smart he'd have enough cash and assets saved up to pay for legal bills and weather the storm, and then he could still eke out a comfortable income from speaking fees at Slowtwitch meetups and Ellen appearances to cover his groceries and utilities. If I owned my house and a garage full of bikes, I could be happy like this for many decades. But I don't need to buy a bunch of groupies, and people like Armstrong often count on sustaining their large incomes indefinitely and get themselves leveraged. If he's already taking out loans on his primary residence, then that's evidence that he's in some financial trouble.

 

[silverrocket]

http://reader.roopstigo.com/view/roopster/story/618/#/chapter/1/

Not looking good. Borrowed $5.5 million against his house.

I was struck by the fact that the Livestrong "headquarters" is worth $9million. That's an expensive office for a charity.

 

[ericfalcon]

I wonder if all the rubbernecks on this board who argued with me about his financial situation will apologise.

The guy has no cash. Fabani must be laughing all the way to the bank.

MC Hammer is laughing at this guy. This will not end well.

 

[mewmewmew13]

I was struck by the fact that the Livestrong "headquarters" is worth $9million. That's an expensive office for a charity.

It sure seems that way to me!
Half that could have gone to cancer RESEARCH.

Lol..Armstrong 'buying groceries'. Great imagery!
He hires flunkies for sure...

It will be worrisome for him if he can't afford to pay his huge entourage of groupies. Life is getting tough.

karma is a b!tcH

 

[thehog]

MC Hammer is laughing at this guy. This will not end well.

Times are tough when you reach MC Hammer status! Armstrong needs to find God and fast!

 

[rata de sentina]

Times are tough when you reach MC Hammer status! Armstrong needs to find God and fast!

Oprah is only a phone call away.

 

[thehog]

Oprah is only a phone call away.

He needs to give SCA 12m but I would spread over 5 years.

He needs about 10m in legal fees for further cases coming up.

He needs to start selling stuff. Fast.

He'll be under a bridge in 3 years. He needs to admit and get a book out or something. Cash flow is tight.

I'd say throw the UCI under the bus and everyone might half like him again.

Have to say Mr. Landis certainly did a number on him.

 

[Scott SoCal]

I wonder if all the rubbernecks on this board who argued with me about his financial situation will apologise.

The guy has no cash. Fabani must be laughing all the way to the bank.

Well....

His situation probably isn't great. But he's probably like most wealthy people... these days there is almost no reason to have large amounts of cash laying around. His money is invested, probably much of his cash is in tax advantaged vehicles and given the low cost of borrowing it probably makes more sense to borrow money to settle some of the stuff coming up. He's likely making more on a tax advantaged basis than he's paying in interest (which may also provide some tax advantages further lowering his net cost of borrowing).

Also, he still has income. Nobody reputable loans Lance 5 million without knowing he has the ability to pay it back.

Show me some proof he's broke and I will be happy to apologize.

 

[Race Radio]

Also, he still has income. Nobody reputable loans Lance 5 million without knowing he has the ability to pay it back.
.

Not much income. It is a loan secured by an asset, not income.

The guy has a serious liquidity issue, that is only going to get worse

 

[silverrocket]

Well....

[...]

Also, he still has income. Nobody reputable loans Lance 5 million without knowing he has the ability to pay it back.

[...]

They would loan him 5 million bucks just based on his current assets (eg. putting his Austin house up as collateral for some other loan), so the fact he got a loan doesn't say anything about whether he has income or not. I'm sure he still has investment income, but as he starts liquidating that investment income will decrease.

I don't think the guy will ever go MC Hammer. He'll probably just end up a regular millionaire with a nice single house and no need to ever get a real job, but his days of private jets, calling up Bono, and having a "staff" are fading into history.

Many of us will probably help him get rich again when he puts out a book of his confessional memoirs and we can't resist buying it.

 

[Scott SoCal]

Not much income. It is a loan secured by an asset, not income.

The guy has a serious liquidity issue, that is only going to get worse

I really hope you are right. I just don't see it unless his legal expenses to this point have been way, way higher than what's been thought.

I understand he put his house up. Traditional banks don't make that loan without the income to support it. Any idea which lending route he took? That will tell the story.

 

[Scott SoCal]

They would loan him 5 million bucks just based on his current assets (eg. putting his Austin house up as collateral for some other loan), so the fact he got a loan doesn't say anything about whether he has income or not. I'm sure he still has investment income, but as he starts liquidating that investment income will decrease.

I don't think the guy will ever go MC Hammer. He'll probably just end up a regular millionaire with a nice single house and no need to ever get a real job, but his days of private jets, calling up Bono, and having a "staff" are fading into history.

Many of us will probably help him get rich again when he puts out a book of his confessional memoirs and we can't resist buying it.

It depends on who "they" is.

 

[Tinman]

I wonder if the bodyguards are still on the payroll.

With what he knows as well as his deteriorating financials he could be seen to be a target for some with a lot more to lose still... Especially if/when he starts to talk.

Norma Jean scenario in the making.

 

[BroDeal]

I think the Armstrong situation is hilarious from a financial point of view. Half a million dollars of Radio Shack's money per annum for three years to hire Landis and it would have saved Armstrong a 100+ million. Landis would have won the Vuelta or Giro during that time, so the team would have received a good return on its money. Heck, Landis helping keep cycling popular in the U.S. probably would have made Armstrong more money.

But he could not bring himself to do it. Too much of an a-hole who likes to build himself up on other people's suffering.

I wonder if he goes to sleep at night kicking himself for being so stupid. I wonder if he blames McQuaid for the UCI's dumb policy of blackballing riders.

 

[Colonel]

I think the Armstrong situation is hilarious from a financial point of view. Half a million dollars of Radio Shack's money per annum for three years to hire Landis and it would have saved Armstrong a 100+ million. Landis would have won the Vuelta or Giro during that time, so the team would have received a good return on its money. Heck, Landis helping keep cycling popular in the U.S. probably would have made Armstrong more money.

But he could not bring himself to do it. Too much of an a-hole who likes to build himself up on other people's suffering.

I wonder if he goes to sleep at night kicking himself for being so stupid. I wonder if he blames McQuaid for the UCI's dumb policy of blackballing riders.

Very good post, so much truth in it.

 

[GotDropped]

I think the Armstrong situation is hilarious from a financial point of view. Half a million dollars of Radio Shack's money per annum for three years to hire Landis and it would have saved Armstrong a 100+ million. Landis would have won the Vuelta or Giro during that time, so the team would have received a good return on its money. Heck, Landis helping keep cycling popular in the U.S. probably would have made Armstrong more money.

But he could not bring himself to do it. Too much of an a-hole who likes to build himself up on other people's suffering.

I wonder if he goes to sleep at night kicking himself for being so stupid. I wonder if he blames McQuaid for the UCI's dumb policy of blackballing riders.

Great post. But half a million a year? I reakon Landis would have signed for 50 grand. It would have been cheap, much cheaper than this. And, he didn't even have to get Radio Shack to sign him up. Make a phone call, get someone else to sign him. That would have been all it took.

 

[Deagol]

..
Many of us will probably help him get rich again when he puts out a book of his confessional memoirs and we can't resist buying it.

I will never buy his $%^&

This has probably been posted elsewhere but
http://reader.roopstigo.com/view/roopster/story/618/#/chapter/1/

 

[Oldman]

Oprah is only a phone call away.

She retired awhile ago. I don't think there's enough hand-sanitizer in her studio for her to handle this one; particularly after Marion Jones....

 

[Deagol]

I think Lance would fit in better on the Honey Boo Booshow, than Oprah.

 

[silverrocket]

I will never buy his $%^&

This has probably been posted elsewhere but
http://reader.roopstigo.com/view/roopster/story/618/#/chapter/1/

I was going to point out that Armstrong's eventual memoirs will surely be quickly available as a file-sharing download, but I didn't want to stir up the debate:

Would that fact that Armstrong cheated us justify us cheating to avoid paying for a book by Armstrong...that would essentially be about his cheating?

 

[Fortyninefourteen]

His book, if one was written, would not have the appeal of a Cancer survivor's winning against all the odds.

It would be about a self-promoting fraud who denied all until there was no truth left untold. Then he would try to spin it in a way that rationalizes all of his misdeeds.

Not a bestseller anywhere.

 

[mewmewmew13]

His book, if one was written, would not have the appeal of a Cancer survivor's winning against all the odds.

It would be about a self-promoting fraud who denied all until there was no truth left untold. Then he would try to spin it in a way that rationalizes all of his misdeeds.

Not a bestseller anywhere.

Correct.

He is irrelevant...exposed.

 

[silverrocket]

Correct.

He is irrelevant...exposed.

If he wrote a real tell-all book revealing all the sordid details of his cycling career and how he doped and conspired you don't think that would be a best-seller?

Tyler Hamilton's book is a best-seller, an Armstrong book in the same vein would outsell it for sure.

 

[mewmewmew13]

If he wrote a real tell-all book revealing all the sordid details of his cycling career and how he doped and conspired you don't think that would be a best-seller?

Tyler Hamilton's book is a best-seller, an Armstrong book in the same vein would outsell it for sure.

That will never happen.

He has no integrity or reason or capacity to own up to what he did.

Armstrong doesn't have a fraction of what it takes to do what Tyler did.