Tim Herman of Herman, Howry & Breen shared some legal insights about the challenges facing his famous client — Lance Armstrong — in the wake of his disclosure that he used Performance Enhancing Drugs. The comments appeared in the Monday issue of USA Today.
Although he admitted to doping in every race from 1999 to 2005, Lance Armstrong says he does not plan to repay the nearly $12 million in bonuses he received for winning the Tour de France.
The paramount legal action lies with SCA Promotions, the company that pays the Tour bonuses. It says it plans to file a lawsuit this week in order to recover money paid to Armstrong for his seven title wins.
Herman, who does not believe legal action on that basis is warranted, compared Armstrong’s situation to those of other prominent sports figures who were not forced to return pay due to misconduct on their behalf.
“My only point is no athlete ever, to my understanding, has ever gone back and paid back his compensation,” Herman told the paper. “Not (New Orleans Saints coach) Sean Payton or anybody else. They were suspended, but nobody said you’ve got to give your paycheck back.”
Herman explained it was a contractual matter between his client and Tailwind Sports, the owner of Armstrong’s cycling team, and that he should not be required to give back his bonuses.
In 2004, SCA withheld payment to Armstrong due to suspicion that he cheated to win that year’s race. Tailwind sued, a legal matter in which Armstrong, under oath, denied using PEDs.
SCA eventually paid Armstrong but is now using his recent confession to doping as basis for litigation. Herman told USA Today that regardless of whether or not SCA covered the cost, Tailwind still carried the obligation to pay Armstrong.
“The bottom line is that Tailwind bought the (insurance) policy (from SCA),” Herman told the paper. “Tailwind paid the premium. Tailwind made the claim, and the money (from SCA) was paid to Tailwind, not Lance Armstrong. I’m sure people will characterize that as a loophole, but it’s a pretty significant factor.
Herman touched on other legal matters facing Armstrong in the aftermath of his confession, such as his athletic eligibility.
Herman noted the unlikely possibility that Armstrong will ever compete again due to a lifetime ban, but also that his client hopes to work with anti-doping officials to help restore integrity to the sport that changed his life.
Armstrong’s ban could be reduced to “no less than eight years” on the basis that he provides a full confession, but according to Herman, “He doesn’t expect it (eligibility), and his offer (to cooperate) is not contingent on that.”
Regardless, even an eight year ban would sideline the 41 year old long enough to virtually end his cycling career.
“I read the rule like you do,” Herman said. “An eight-year ban, that would be a lifetime.”
Regardless of the pending legal action and whatever outcome follows, Herman said Armstrong wants to continue making a “positive impact” on his community parallel to the way his charity Livestrong supports cancer survivors.
“He’s going to continue to do what he can to earn back the trust that he’s forgone with his conduct,” Herman said. “That’s an ongoing process.”
