Saxo wins - Riis loses

by Jens on Dec 12, 2008 2:48 AM EST

Danish paper B.T. has done some digging into some strange transactions in the now bancrupt IT Factory. A sum of 51 million danish crowns had been paid out under the heading of "costs for bikesponsorship". Riis Cycling has recieved 10 million as a first payment on the sponsorship, There have been rumors that Riis would be assured the remaining 41 million but now it seems the story has taken a new twist. The 41 million was in fact the price paid by IT Factory to SaxoBank for the right to share the sponsorship. Since the money has already been paid, Saxo are now the sole name-sponsor AND they got a 40 millon discount on the price. Someone is happy! (Not Riis presumably, who has been forced to make cutbacks in the administrative staff due to the loss of the IT Factory money.)

A good guess is that Riis will try to find a new co-sponsor who will get to share the place on the jersey without compensating Saxo, who have already been paid once. Hard to see them arguing with that

Link to original story (in danish)

Tweet Comment 4 comments | 0 recs |

Do you like this story?

Comments

Wow!

Dicked by your own title sponsor!?

by MavicMoto on Dec 12, 2008 11:12 AM EST reply actions

Sounds fishy - they may have to give it back

It would be interesting to see the contract, but since IT Factory is NOT going to get space on the shirts, etc. the bankruptcy court could order the money taken back if Saxo doesn’t let others there. At least in the U.S. this is possible. Maybe not over there. That ability to use the advertising space supposedly has some value (or why did IT factory pay for it?) so the space should be available for sale to anyone without Saxo interference. The bankruptcy courts in the U.S. can sell things like this, so it should be possible there. Riis could get some money out of that. Nothing like the original amount of course.

by Markk on Dec 12, 2008 11:19 AM EST reply actions