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Lance Armstrong isolated as Nike terminate deal

The partnership has raised nearly pounds 50 million through the sale of yellow Livestrong wristbands and the company produces numerous other Livestrong-branded products.

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The decline and fall of Lance Armstrong, once one of the most iconic sports stars in the world, gathered pace on Wednesday when he was dropped by his largest corporate sponsor, American clothing and footwear company Nike, and forced to step down as chairman of the cancer charity he founded 15 years ago.

Nike, who just six days earlier had pledged its continued support for Armstrong following the publication of a damning 1,000-page dossier exposing the him as a serial drug cheat, reversed its decision by announcing it was ending its long-standing endorsement deal with the former cyclist, which has been reported as being worth $7.5 million (pounds 4.6 million) a year.

In a hard-hitting statement, Nike said: "Due to the seemingly insurmountable evidence that Lance Armstrong participated in doping and misled Nike for more than a decade, it is with great sadness that we have terminated our contract with him. Nike does not condone the use of illegal performance enhancing drugs in any manner."

The company said it would continue to support the Lance Armstrong Foundation, also known as Live-strong, though the cancer charity faces an uncertain future as the doping scandal continues to engulf the man who founded it in 1997 after surviving an aggressive form of testicular cancer.

Another of Armstrong's main backers, RadioShack, said last night its relationship with the disgraced cyclist was also over. "RadioShack has no current obligations with Lance Armstrong," a spokesman for the electronics store told the Wall Street Journal.

Less than an hour before Nike went public with its decision to sever its links with Armstrong, the 41-year-old Texan announced he was stepping down as the foundation's chairman so that it could concentrate on its fund-raising and awareness-raising mission rather than the furore that has raged around him since the United States Anti-Doping Agency accused him last week of being the ring-leader of "the most sophisticated, professionalised and successful doping program that sport has ever seen".

Armstrong said in a statement: "This organisation, its mission and its supporters are incredibly dear to my heart. Today, therefore, to spare the foundation any negative effects as a result of controversy surrounding my cycling career, I will conclude my chairmanship.

"As my cancer treatment was drawing to an end, I created a foundation to serve people affected by cancer. It has been a great privilege to help grow it from a dream into an organisation that today has served 2.5 million people and helped spur a cultural shift in how the world views cancer survivors.

"My family and I have devoted our lives to the work of the foundation and that will not change. We plan to continue our service to the foundation and the cancer community. We will remain active advocates for cancer survivors and engaged supporters of the fight against cancer."

Armstrong, who will remain a member of the foundation's 15-man board, is due to speak at a dinner tomorrow in Austin, Texas, as part of a four-day fund-raising gala though it is not known whether he still plans to honour the engagement. The gala is due to be attended by several celebrities, including actors Sean Penn, Ben Stiller and Robin Williams.

Nike's association with Armstrong dates back to 1996 and his success in the saddle was instrumental in the company's expansion into cycling. He was the face of numerous marketing campaigns, including a 2001 advertisement featuring footage of Armstrong having blood drawn for a drug test and challenging those who accused him of doping.

The partnership has raised nearly pounds 50 million through the sale of yellow Livestrong wristbands and the company produces numerous other Livestrong-branded products.

The company has a history of remaining loyal to its stars and stood firmly behind Tiger Woods when he became embroiled in a sex scandal in 2009, though the gravity of the evidence against Armstrong and the scale of the negative media coverage was clearly threatening to damage its own global reputation.

Just a day earlier, the company had been forced to issue a vehement denial of a newspaper clam that it had paid a $500,000 bribe to the former head of cycling's world governing body, Hein Verbruggen, to cover up a positive drug test. It described the allegation as "offensive".

Significantly, it was also announced yesterday that Nike had signed a deal to supply uniforms and products to members and staff of the International Olympic Committee. Having gained such a foothold in Lausanne, the last thing Nike needed was to be tainted by association with Armstrong.

The former cyclist, who has been banned from the sport for life and stripped of his seven Tour de France titles, continues to protest his innocence but he appears to be running out of believers. Now that Nike has deserted him, other sponsors such Anheuser-Busch and Oakley will be looking long and hard at their endorsement deals.

He also faces the threat of legal action by American insurance company SCA, who have indicated they will attempt to reclaim a total of around $12?million (pounds 7.4?million) in bonuses and legal fees over sums paid to him for his Tour de France victories.

Armstrong took SCA to court in 2005, forcing it to pay up after it initially withheld the money because of allegations that he had doped. His sworn testimony denying the claims could also leave him facing perjury charges.

Meanwhile, the fallout from last week's USADA report caused further collateral damage yesterday when Matt White, Armstrong's former team-mate US Postal team-mate who has confessed to doping, was sacked as a national coach by Cycling Australia.

 

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