The U.S. Postal Service supplied slightly more than 60% of the annual budget of the pro cycling team led by Lance Armstrong from 2001 to 2004.
The U.S. Postal Service spent slightly more than 60% of its annual budget from 2001 to 2004 to sponsor the pro cycling team led by Lance Armstrong.
The $32 million sum — including $6.1 million in 2001; $7.61 million in 2002; $8.23 million in 2003; and $8.66 million in 2004, plus a total of $400,000 for a junior program — was revealed in documents released to ESPN.com under a freedom of information request.
The amount could become an important issue as federal investigators continue probing allegations made by former teammate Floyd Landis that Armstrong and other members of his team doped to gain a competitive edge. Landis also has filed a federal whistle-blower lawsuit that would entitle him to a percentage of any restitution that could be made to the Postal Service in the event of a conviction.
Return on investment
Meanwhile, the AP received studies commissioned by the US Postal Service that valued its sponsorship of the team during those years was at least triple the amount it invested.
In addition to Armstrong winning his 3rd, 4th, 5th, and record-setting 6th Tour de France championship during those years, his relationship with Sheryl Crow and the phenomenal success of the LiveStrong wristbands also helped the USPS sponsorship gain exposure, according to the studies.
Drug clause
ESPN.com reports that the USPS sponsorship grew over the years from its initial $1 million investment in the team — owned by Tailwind Sports.
According to ESPN's Shaun Assael:
“The escalating figures show the tangible effect of Armstrong's star power and the leverage it gave Tailwind. The agency's initial contract with the team in 1996 was for $1 million. Armstrong signed with the team before the 1998 season, and won the first of his record seven Tour de France titles in 1999.
“By 2000, the contract, renewed yearly, had grown to $3.3 million. In 2004, it was more than eight times the original amount.”
Also in 2000, the USPS added a morals turpitude and drug clause that required the team owners to suspend or terminate any rider for “failure to drug or medical tests” or “inappropriate drug conduct prejudicial to the team.” [Full clause available at ESPN.com]
The ESPN.com provides more interesting details about payments made to the team during the high point of Armstrong's career.
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