Trek Bicycle has filed a lawsuit to get out of its contract to produce bicycles for LeMond Cycling.
Trek president John Burke cites a “troubling pattern of inconsistent business dealings” with Greg LeMond, the three-time Tour de France winner.
That “troubling pattern” includes LeMond's habit of speaking his mind about doping in the sport of cycling. It also probably includes the lawsuit against Trek that LeMond filed on March 20. According to the Milwaukee Business Journal, the lawsuit charges Trek with:
“…failing to adequately market the LeMond-branded bikes and accuses the company of favoring products with the Lance Armstrong brand, at the expense of LeMond's products.”
Target suit
That sounds a lot like a lawsuit that LeMond filed against Target owner PTI Holdings in 2003. The company had pledged to put LeMond's name on bike accessories it sold at Target for 10 years. It stopped two years into the contract, however, and told LeMond that Armstrong had emerged “as the dominant American cyclist.”
A jury awarded LeMond $3.46 million in that one.
Rift
The Waterloo-based bike maker has had a deal to make LeMond bikes since 1995. Trek's sponsorship of Armstrong and his Postal Service and Discovery Channel teams is well-known within cycling.
Also well-known is the controversy between Armstrong and LeMond. The 3-time Tour winner has even testified against the 7-time Tour winner in arbitration proceedings in 2006 regarding doping allegations. Earlier he had made comments regarding Armstrong and his association with Italian doctor Michele Ferrari, who was accused, but never convicted, of doping cyclists.
No renewal
Burke said he informed LeMond last year that he'd have to find a new manufacturer as Trek would not renew the contract in 2010. AP reports:
Burke said LeMond would renege on promises, which included curbing his comments about doping in cycling to focus on the brand. Trek then invested money in the brand, Burke said, only to have LeMond speak out again, which sent sales downward and frustrated dealers and customers.
“Doping is a very important topic for our industry. We never discouraged Greg from speaking out about doping in cycling,” Burke said. “We know there is a difference between attacking an issue and destroying reputations. Greg's public comments damaged the LeMond brand, and our reputation with retailers and consumers.”
Good coverage at VeloNews (“Trek announces an end to deal with Greg LeMond”) as well.
Documents
Also, Trek has posted the press release, Burke's presentation to employees and media, LeMond's 2004 and 2008 complaints, and Trek's filing for declaratory judgement. All are presently at the Trek media page.
The complaint filed by LeMond in 2008 makes for good reading, as it recounts the reaction from Trek regarding his statements about Armstrong.
The Trek filing also says it tried to get LeMond to tone down his comments as he was hurting Trek and his own brands. It also alleges that LeMond would buy bike directly from Trek at an employee discount and resell them, thereby undercutting Trek's dealers.
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