The blurred lines of Livestrong - the spin bike sham

[Merckx index]

Polish, how did you get this photo of me?

C'mon, Betsy, you're a babe.

Heard anything about what Novitzky's up to that the rest of us haven't?

 

[thehog]

You can track it here, should you be interested:

http://flightaware.com/live/flight/N7LA

Although it appears to have been removed from the system as N7LA owned & operated by Mellow Johnnys Aviation LLC hasn't operated since January 15th 2009

2009? last action? Nah it's been dancing all over the world all through 2010. Last flown on the 16th December.

http://www.airliners.net/search/photo.search?regsearch=N7LA&distinct_entry=true

http://www.aviongoo.com/aviongoo/faa_info.php?nnum=7LA

 

[nowytzki]

2009? last action? Nah it's been dancing all over the world all through 2010.

Yeah, pro delivery for the TDF. First blood bag delivered a few hours before the TDF start:
http://www.planepictures.net/netshow.php?id=956363
Second blood bag delivered in Geneva just before the Alps:
http://www.pictaero.com/en/pictures/picture,91912

To help the 28 million cancer survivors worldwide, you can donate here: http://www.livestrong.org/Donate

 

[Dr. Maserati]

2009? last action? Nah it's been dancing all over the world all through 2010. Last flown on the 16th December.

http://www.airliners.net/search/photo.search?regsearch=N7LA&distinct_entry=true

http://www.aviongoo.com/aviongoo/faa_info.php?nnum=7LA

Careful.

The piece you linked says "Last_action_date 20091216" - thats 16 December 2009! IIRC this was to do with an overhaul or maintenance issue and nothing to do with flight time.

 

[thehog]

Yeah, pro delivery for the TDF. First blood bag delivered a few hours before the TDF start:
http://www.planepictures.net/netshow.php?id=956363
Second blood bag delivered in Geneva just before the Alps:
http://www.pictaero.com/en/pictures/picture,91912

To help the 28 million cancer survivors worldwide, you can donate here: http://www.livestrong.org/Donate

Two other titbits which which I've had emailed to me overnight:

One the jet is owned by MJ but linked direct to Mr. Armstrong. MJ's took out the loan for the jet and the debt is serviced by leasing its time back to Livestrong/CSE/Demand etc. Mainly Livestrong I understand. I was told the fee was 5700USD per hour but this hasn't been confirmed. I suspect more. This is why the race schedule was closely linked in with Livestrong activity because it allowed the jet to be used for "company purposes". You'll find photos of the jet landing in Nice, Belgium etc. throughout the year. It also might given reason to why there were last minute race withdrawals etc. This is also why you'll see much higher travel costs over the last two years. It won't be listed as "jet fuel" in company records but by "lease" or it may just be part of the "program" costs under "leases".

The second which was mentioned earlier in this thread was the "outsource" arrangement for the program events. This arrangement means that local entity outside of Livestrong pay Livestrong to run an event at their own expense under the Livestrong banner and donate the money to direct to Livestrong. This way Livestrong has much less outgoings but actually gets paid for someone else to run and pay the set up costs of the event! This money again gets buried back into programs. Its makes the balance sheet look so much better and it appears they are running programs all over the world at great expense whereby they're just outsourcing the name and collecting the revenue. All that is provided is the logo cuts and some marketing materials. Dublin was run in this manner. (the real focus now is Livestrong.com and Demand not running bike rides to generate money).

The key in all of this is that the 501 listing to the IRS is lodged as "non-specfic" program costs. Meaning they don't specify won't exactly revenue is spent on as long as it falls under "programs".

SI are you reading this?

 

[Race Radio]

Two other titbits which which I've had emailed to me overnight:

One the jet is owned by MJ but linked direct to Mr. Armstrong. MJ's took out the loan for the jet and the debt is serviced by leasing its time back to Livestrong/CSE/Demand etc. Mainly Livestrong I understand. I was told the fee was 5700USD per hour but this hasn't been confirmed. I suspect more. This is why the race schedule was closely linked in with Livestrong activity because it allowed the jet to be used for "company purposes". You'll find photos of the jet landing in Nice, Belgium etc. throughout the year. It also might given reason to why there were last minute race withdrawals etc. This is also why you'll see much higher travel costs over the last two years. It won't be listed as "jet fuel" in company records but by "lease" or it may just be part of the "program" costs under "leases".

The second which was mentioned earlier in this thread was the "outsource" arrangement for the program events. This arrangement means that local entity outside of Livestrong pay Livestrong to run an event at their own expense under the Livestrong banner and donate the money to direct to Livestrong. This way Livestrong has much less outgoings but actually gets paid for someone else to run and pay the set up costs of the event! This money again gets buried back into programs. Its makes the balance sheet look so much better and it appears they are running programs all over the world at great expense whereby they're just outsourcing the name and collecting the revenue. All that is provided is the logo cuts and some marketing materials. Dublin was run in this manner. (the real focus now is Livestrong.com and Demand not running bike rides to generate money).

The key in all of this is that the 501 listing to the IRS is lodged as "non-specfic" program costs. Meaning they don't specify won't exactly revenue is spent on as long as it falls under "programs".

SI are you reading this?

This was actually discussed here at the time. A charter company in San Francisco owns the plane and Armstrong was using it for a while. Forgot to disable the tracking of the tail number.

Private jets are great things. They can be used to deliver lots of good stuff, like blood bags, ex teammates wives.

What is worse, spending a charities money on a private jet to transport "Stuff" or on Lap Dances?

 

[D-Queued]

This was actually discussed here at the time. A charter company in San Francisco owns the plane and Armstrong was using it for a while. Forgot to disable the tracking of the tail number.

Private jets are great things. They can be used to deliver lots of good stuff, like blood bags, ex teammates wives.

What is worse, spending Livestrong money on a private jet to transport "Stuff" or on Lap Dances?

Sounds like some sort of questionable activity haven, doesn't it?

Dave.

 

[sartain]

Two other titbits which which I've had emailed to me overnight:

One the jet is owned by MJ but linked direct to Mr. Armstrong. MJ's took out the loan for the jet and the debt is serviced by leasing its time back to Livestrong/CSE/Demand etc. Mainly Livestrong I understand. I was told the fee was 5700USD per hour but this hasn't been confirmed. I suspect more. This is why the race schedule was closely linked in with Livestrong activity because it allowed the jet to be used for "company purposes". You'll find photos of the jet landing in Nice, Belgium etc. throughout the year. It also might given reason to why there were last minute race withdrawals etc. This is also why you'll see much higher travel costs over the last two years. It won't be listed as "jet fuel" in company records but by "lease" or it may just be part of the "program" costs under "leases".

The second which was mentioned earlier in this thread was the "outsource" arrangement for the program events. This arrangement means that local entity outside of Livestrong pay Livestrong to run an event at their own expense under the Livestrong banner and donate the money to direct to Livestrong. This way Livestrong has much less outgoings but actually gets paid for someone else to run and pay the set up costs of the event! This money again gets buried back into programs. Its makes the balance sheet look so much better and it appears they are running programs all over the world at great expense whereby they're just outsourcing the name and collecting the revenue. All that is provided is the logo cuts and some marketing materials. Dublin was run in this manner. (the real focus now is Livestrong.com and Demand not running bike rides to generate money).

The key in all of this is that the 501 listing to the IRS is lodged as "non-specfic" program costs. Meaning they don't specify won't exactly revenue is spent on as long as it falls under "programs".

SI are you reading this?

Outstanding, Hog . . . maybe you should lob this into SI in case they are not reading here. I am just floored at what gets posted on The Clinic!!!!

 

[Race Radio]

Two other titbits which which I've had emailed to me overnight:

One the jet is owned by MJ but linked direct to Mr. Armstrong. MJ's took out the loan for the jet and the debt is serviced by leasing its time back to Livestrong/CSE/Demand etc. Mainly Livestrong I understand. I was told the fee was 5700USD per hour but this hasn't been confirmed. I suspect more. This is why the race schedule was closely linked in with Livestrong activity because it allowed the jet to be used for "company purposes". You'll find photos of the jet landing in Nice, Belgium etc. throughout the year. It also might given reason to why there were last minute race withdrawals etc. This is also why you'll see much higher travel costs over the last two years. It won't be listed as "jet fuel" in company records but by "lease" or it may just be part of the "program" costs under "leases".

The second which was mentioned earlier in this thread was the "outsource" arrangement for the program events. This arrangement means that local entity outside of Livestrong pay Livestrong to run an event at their own expense under the Livestrong banner and donate the money to direct to Livestrong. This way Livestrong has much less outgoings but actually gets paid for someone else to run and pay the set up costs of the event! This money again gets buried back into programs. Its makes the balance sheet look so much better and it appears they are running programs all over the world at great expense whereby they're just outsourcing the name and collecting the revenue. All that is provided is the logo cuts and some marketing materials. Dublin was run in this manner. (the real focus now is Livestrong.com and Demand not running bike rides to generate money).

The key in all of this is that the 501 listing to the IRS is lodged as "non-specfic" program costs. Meaning they don't specify won't exactly revenue is spent on as long as it falls under "programs".

SI are you reading this?

BTW, the actual line item is named "Other". It is over $3,000,000. What kind of organization has $3,000,000 of "Other"

 

[sartain]

BTW, the actual line item is named "Other". It is over $3,000,000. What kind of organization has $3,000,000 of "Other"

I think Enron and Worldcom did? But I do not know many non-profits that would. Perhaps one of our regular CPA's could chime in with their thoughts?

 

[MacRoadie]

What kind of organization has $3,000,000 of "Other"

I'm guessing maybe these guys:

Adelphia founder John Rigas found guilty

 

[AnythingButKestrel]

That's some awesome accounting. The jet is a double tax deduction. MJs can use the costs and depreciation to zero out profits - then LAF gets the lease deduction. Schweet!

 

[Dallas_]

Is this relevant? ....Nah dont think so

http://armstrong-cavendish.com/privatejetcharter.html

if so, this plane looks similar to plane at post #191 but are they? just looking at the stripes! na couldnt be

http://armstrong-cavendish.com/Lightjets/Default.html


cheers

 

[frenchfry]

Obviously I totally misunderstood the meaning of "charity" and "foundation".

 

[Roland Rat]

Is this relevant? ....Nah dont think so

http://armstrong-cavendish.com/privatejetcharter.html

if so, this plane looks similar to plane at post #191 but are they? just looking at the stripes! na couldnt be

http://armstrong-cavendish.com/Lightjets/Default.html


cheers

Well the spiel does begin with "Relax..."!

 

[frenchfry]

I wish I could say this kind of scam is typical of the greedy USA and could never happen in a civilised country like France, but this would not be true. There are 2 cases I know of that are similar:

In the 90's, the president of ARC (Association de Recherche sur le Cancer) stuck the association for 10s of millions of euros, either through fake expenses (purchase and renovation of expensive villas, cars, personal travel and parties etc.) or through false invoices for services never provided. He would appear regularly on TV to solicit donations that were supposed to go to cancer research.

Currently David Douillet (ex judo champion) is milking the Fondation des Pièces Jaunes (he pleads for children to empty their piggy banks to donate the coins, which are supposed to go to improving the life of hospitalised children) for €32K/month for the use of his image, plus exorbitant expenses, vehicles etc. Mme Chirac, wife of the ex President, costs the association €141K/month for expenses (including, for example, €24K/month for food expenses). Of course we are led to believe that they lend their names and time for free.

The charity gravy train, these people have no shame.

 

[thehog]

BTW, the actual line item is named "Other". It is over $3,000,000. What kind of organization has $3,000,000 of "Other"

Plenty of "other".

Back to the jet for the moment. The reason why I say they're only for the "liquid" subculture is that they not only require fuel but you also need to hire and pay for crew not only for the time in the air but for the length of your stay. This is why timeshare works well but when you own the jet these costs are huge. The other area is airport taxes. They are extreme. Commercial airlines can subdivide these costs amongst 200-300 passengers but for a 22 seater you get hit. They are less for light aircraft but to get the slot you want at the airport you have to pay big. Then you have to keep the jet in the remote hanger for the length of the stay and that spaced is rented out. Then there's insurance. Insurance is massive.

Jets are expensive business. They're only for the elite. Most celebrities can afford the jet itself but not the running and the upkeep. Its for Steve Jobs, Paul Allen, Bill Gates, Larry Ellison types. Not 10m a year men. 10m won't even get you to the table. But if you can outsource the running costs to another business well that helps! a lot!

 

[BotanyBay]

But if you can outsource the running costs to another business well that helps! a lot!

And this has been my point as well. Pawning-off the extreme operating costs of a Gulfstream G4 to one's non-profit foundation is "lower than low". Hog is correct. "Getting" a private jet is not that big a deal for the wealthy. "Owning and operating" a private jet is for those who have little to no chance of ever having a cash-flow problem again.

It's one thing to live large like MC Hammer, but to do it on your foundation's dime is sick.

 

[frenchfry]

This reminds me of A Man in Full when Charlie Crocker has his Gulfstream repossessed when coming back from quail hunting on his plantation.

 

[Velocentric]

Just found this on the front page of livestrong.org:

http://twitpic.com/3mpfrr

Apparently all that Christmas and New Year travel was quite expensive.

 

[jimbob_in_co]

Just found this on the front page of livestrong.org:

http://twitpic.com/3mpfrr

Apparently all that Christmas and New Year travel was quite expensive.

I wish they'd change their new slogan to "27,999,999 Cancer Survivors" because those yellow wearing frauds in Austin, TX do not represent, and have not helped, me.

 

[D-Queued]

I wish they'd change their new slogan to "27,999,999 Cancer Survivors" because those yellow wearing frauds in Austin, TX do not represent, and have not helped, me.

Do you think the other 27.9 million are aware of the disease yet? Or, should they keep it up with the programs?

Dave.

 

[Velocentric]

May not be anything to do with the plane (aside from the hefty travel involved in 2009) but reading through the 2009 annual report this struck me as worth highlighting:

"In 2009, LIVESTRONG launched the first-ever unified global movement against cancer by urging world leaders, leading cancer organizations and cancer survivors to join our efforts. After traveling to Australia, Mexico, Italy, Monaco, France and Ireland, the LIVESTRONG Global Cancer Campaign’s inaugural year culminated in the first LIVESTRONG Global Cancer Summit in Dublin. The Summit brought together more than 500 people from 60 countries to address the global cancer burden and find new ways to work together. Representatives from governments, non-governmental organizations, advocacy groups, physicians, researchers and others left the Summit with new tools and connections to foster their work in the cancer community."

That may come as a surprise to the Union for International Cancer Control and the World Health Organisation both of whom preempt Livestrongs movement by at least 2 years.

But why let fact get in the way of a good bit of PR or spin?

 

[thehog]

May not be anything to do with the plane (aside from the hefty travel involved in 2009) but reading through the 2009 annual report this struck me as worth highlighting:

"In 2009, LIVESTRONG launched the first-ever unified global movement against cancer by urging world leaders, leading cancer organizations and cancer survivors to join our efforts. After traveling to Australia, Mexico, Italy, Monaco, France and Ireland, the LIVESTRONG Global Cancer Campaign’s inaugural year culminated in the first LIVESTRONG Global Cancer Summit in Dublin. The Summit brought together more than 500 people from 60 countries to address the global cancer burden and find new ways to work together. Representatives from governments, non-governmental organizations, advocacy groups, physicians, researchers and others left the Summit with new tools and connections to foster their work in the cancer community."

That may come as a surprise to the Union for International Cancer Control and the World Health Organisation both of whom preempt Livestrongs movement by at least 2 years.

But why let fact get in the way of a good bit of PR or spin?

http://www.slideshare.net/mobile/LIVESTRONG1997/du-wl-summituicc2010-pptvfinalpptbrooke-copy#1

If someone can explain exactly what the Global Cancer Campaign actually is I'd like to know. I'd also like to know what is they do and whats the output?

Some of this slides are diabolical. Are they serious about this? I hadn't seen so many culture stereotypes one one slide in my life!!

 

[BotanyBay]

Do you think the other 27.9 million are aware of the disease yet? Or, should they keep it up with the programs?

Dave.

We won't rest until the other 4.9X Billion people on Earth are aware.

Honestly, with a world population of over 5 Billion, don't you guys think 28 Million is a rather understated number?