Tailwind Vs SCA 'insurance' claim

[chemikal pedlar]

Long time reader, first post so please be gentle...

How did this insurance policy work, am I right in thinking that he/they took out an insurance policy to pay X million dollars for each consecutive TdF that Armstrong won.

How is that not betting on your performance in sport, and why is that in itself legal?

Apologies if this has been discussed before but I'm sure you all have a stock answer / link to satisfy my ignorance.

 

[Dr. Maserati]

Long time reader, first post so please be gentle...

How did this insurance policy work, am I right in thinking that he/they took out an insurance policy to pay X million dollars for each consecutive TdF that Armstrong won.

How is that not betting on your performance in sport, and why is that in itself legal?

Apologies if this has been discussed before but I'm sure you all have a stock answer / link to satisfy my ignorance.

Here is a link to the SCA Promotions website - it explains what they do, and here is some information on "Athlete Incentives".

 

[Colm.Murphy]

Long time reader, first post so please be gentle...

How did this insurance policy work, am I right in thinking that he/they took out an insurance policy to pay X million dollars for each consecutive TdF that Armstrong won.

How is that not betting on your performance in sport, and why is that in itself legal?

Apologies if this has been discussed before but I'm sure you all have a stock answer / link to satisfy my ignorance.

The corp takes out the policy so they don't have to pay the "Full Bonus" as written into LA's contract should he win. Consider it is cheaper to pay the premiums than the whole bonus, such as it is.

The sticky part is in the mincing of language of "winning" the race. If one doped to do so, is it still winning? If there is no sanction and no revocation of the title (only innuendo and rumor) then Mr. LA is still the Champion of the event and the bonus must be paid.

The matter came to the issue of whether any doping use, whether proved or not, would null and void the victory.

Absent any sanction that would revoke the title, then the money is his.

HOWEVER, with the Landis info, were I SCA, I would be examining the language of the settlement agreement (was it with prejudice?) to determine what right I would have to re-arbitrate/litigate based on new info. To be clear, I would simply wait and see what occurs wrt the Feds and USADA. That would then be your basis to move forward and make a demand.

You can dig into all the guts of the SCA v Tailwind matter, though you'll be wasting a nice Sunday.

 

[chemikal pedlar]

Posted by Colm.Murphy
The corp takes out the policy so they don't have to pay the "Full Bonus" as written into LA's contract should he win. Consider it is cheaper to pay the premiums than the whole bonus, such as it is.

Obvious really, can't believe I hadn't thought of that. I fully take your points re whether he won or not, we will see how things pan out over the next few months / years.

Thanks for the very swift responses, my mind is at rest for my sunday evening...

 

[BroDeal]

At the local bar if I pay Guido $20 for a potential $500 payout then I am gambling. It's illegal.

If a corporation pays another corporation $200K for a potential $5M payout then it is insurance. It is legal.

In Coporate America it is all pretty simple.

 

[Waterloo Sunrise]

At the local bar if I pay Guido $20 for a potential $500 payout then I am gambling. It's illegal.

If a corporation pays another corporation $200K for a potential $5M payout then it is insurance. It is legal.

In Coporate America it is all pretty simple.

Is gambling illegal in America?


Land of the free, ho ho ho!

 

[Night Rider]

How is that not betting on your performance in sport, and why is that in itself legal?

You can't bet on sport in the US? No! Serious?

 

[Cerberus]

You can't bet on sport in the US? No! Serious?

I believe you cannot bet on your own performance, which is what Chemical wrote (though I can see how you'd misread him). Obviously betting on yourself to lose is problematic, but even betting on yourself to win can easily be abused.