Rumorage! The End of Rock Racing?
by Jen See on Dec 15, 2008 6:17 PM EST
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PrintAndy Shen of Velocitynation, who first brought us the news of the Armstrong comeback, reports in a brief notice today that Rock Racing "is folding ASAP." According to Shen, who saw an internal memo from sponsor Rock and Republic, the company is laying off 40 employees and shutting down the cycling team effective immediately.
Ben Delaney and Neal Rogers at VeloNews confirmed the existence of the email and that high-end fashion company had laid off employees as a consequence of economic difficulties. The team spokesman, Sean Weide, told VeloNews that a "number" of employees "both on the Rock Racing and on the clothing side" have lost their jobs. However, Weide refused to provide any further information, and VeloNews has not yet proved able to confirm that the team will close down. VeloNews did speak with Rasaan Bahati's agent, who said that communication with the team had been "spotty" recently.
Rock Racing has offered the gift that kept on giving during this off-season. First, the roster was too old, then too big. Next, the team hired Rudy Pavenage, the former advisor and Fuentes hook-up to Jan Ullrich. Then came demotion of several riders from the pro team to an amateur team, among them the US Pro Criterium Champion, Bahati. Now, it appears that the entire team may be on the rocks.
Update: The team has issued an official statement confirming that it will continue next season. Here is the text:
Rock Racing will continue to race in 2009. Tyler Hamilton, Rahsaan Bahati and Justin Williams will defend their U.S. national titles. More important information about the team’s plans will follow. We appreciate your interest and continued support of Rock Racing.
No doubt there is more to come on this story.
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I give them two weeks to close up
Come on! In this economy, it’s time to trim the fat, and a small clothing manufacturer with a bicycling team?
I don’t know what Ponzi scheme this company’s been running up till now, but the run on the bank is gonna start soon. Undoubtedly, the company bank account is already being siphoned off.
Well
if you’ve contracted to pay them for the season, and already bought the bikes and support vehicles, then it might be cheaper to keep going for one more season.
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 11:32 PM EST up reply actions
Back in '95
Le Groupement shut down a week or so before the Tour. It’s a question of when do you finally get sussed. Hats off to MB for all the publicity he’s managed to get for the cost of a fraction of a second of a Superbowl ad.
Correction
3 – Williams, Bahati, Hamilton.
by Chief Commissaire on Dec 15, 2008 7:39 PM EST up reply actions
Not Overly Surprised
I think it makes sense that Rock & Republic clothing would be in economic difficulty when the economy heads south quickly.
I guess there are little or no bank guarantees required of continental teams. What is sad is the number of riders and staff that will be affected by this. Rock also supported some stage races, so this may affect more than just the team.
I wonder
what percentage of R&R $300 jeans were purchased by folks in Orange County using their toxic HELOC money? And if true, this is very, very bad news regardless of your opinions about Mr. Ball and his antics.
I hate Ball, and I'm not a big fan of the type of team they have, but I hope this isn't true
all Rock’s riders would find it very tough to get new teams now. It’s middle December and most teams have finalized their rosters. This also is a blow to US cycling, RR had a good following.
"If you go (with a break), you can either win or not win. If you don't go for it, you definitely won't win."
~ Jens Voigt
Dang
I do think they bring something interesting to the sport, assuming they’re clean. If they could get past the occasional distractions and nonsense, they’re needed on the scene. So this would be a loss to cycling. Then there’s the individual effects… nice way to ring in the holidays.
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 7:32 PM EST reply actions
Official statement from Rock Racing:
“Rock Racing will continue to race in 2009. Tyler Hamilton, Rahsaan Bahati and Justin Williams will defend their U.S. national titles. More important information about the team’s plans will follow. We appreciate your interest and continued support of Rock Racing.”
yep
And the riders demoted to the amateur team may be more amatuer than they expected, ie, no salary.
l’ouch. This is going to get ugly.
Well, that's a lot of contracts to have to pay out
Please tell me that they are going to be held to the contracts. Anybody? I would hate to think of the riders getting screwed like that. Ivan Dominguez made the right choice, almost like he knew something.
If I just had one more gear, I...
Contracts?
The only contract I ever remember Ball talking about was the “win or you’re out on your ass” contract.
So apparently Ball is all talk, except when it comes his riders and DS’s who can’t get in touch with him.
I wonder if he screens his calls?
Racing for Victory and Free Beer!
I wouldn't doubt it
Didn’t Mercury have the same kinds of problems right before it folded? Nobody could get in touch with the team manager and then poof, the team was gone. Is that right?
If I just had one more gear, I...
Mercury-Viatel drug out for more then half the season.
The guys in Europe were completely hung out to dry.
I remember Tonkov being insanely pissed, and you really don’t wanna tick of a Russian like that.
That man honestly knows people who can make you disappear all Hoffa style.
Most of us who were there back in ‘01 all seem to chuckle when anyone starts saying things about Ball.
The statement I most often think, or hear is "You’ve never met John Wordin, have you?"
Ran into him this summer
During the MDC ride down the coast. He’s started a foundation to raise money for Injured Vets. Road 2 Recovery
well
Please tell me that they are going to be held to the contracts. Anybody?
A contract is a contract, and I’m sure it provides for termination of it in a number of ways. Like most contracts, I expect that the part with the bargaining power is the one that the contract is drawn in favor of. I’m thinking that the riders were never really the ones with the bargaining power, here. In any event, I’m just guessing – I’ve never succeeded in my effort to find a copy of a Pro Tour contract.
Gee
but they have such a strong riders’ union…
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 8:14 PM EST up reply actions
ja
Most of the riders will not likely have the resources to force the issue, ie, by taking Ball to court.
As I recall, Landis tried to sue whathisname, the guy who ran Mercury, I can only think of his nickname, but I don’t think he ever really got anything out of it.
damages
In the case of Mercury, the problem was likely that there were no assets to go after. In RR’s case, I’m thinking that the chance that the line between the team’s and R&R’s assets might just be fuzzy enough to be worth a close look by any riders who found themselves with a breach on their hands. Of course, if R&R’s lawyers are worth anything, all rider/team disputes head to an arbitration process that make it more appealing for a rider to just take the season off and look for work next year, instead.
(Remembering, of course, that this is all just idle speculation right now. But it’s the sort of idle speculation that I find interesting.)
Interesting point.
No, I don’t think there were any assets at all in the Mercury case, actually. Pretty sure, man, his name is on the tip of my brain, pretty much had nothing, and there wasn’t much to sell off from the team.
It’s hard to know how well Ball ran his business, but it wouldn’t at all surprise me if he was sloppy about something like this. During the Exuberance, selling expensive chi-chi jeans was like taking candy from babies, which may have encouraged not-so-careful accounting.
From where I’m sitting in Cali, easy to see how quickly that business is going to suffer. High end shopping districts aren’t looking so good at the moment.
Well...
The simpler explanation is that his business has been fine, but thanks to the economy it won’t be for much longer, so he’s tightening the belt and cutting down expenses. There may be a problem with the accounting up til now, but it might simply be a matter of a well-run biz seeing its future slipping away. Stay tuned…
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 8:54 PM EST up reply actions
yup
I suspect there’s some real money at R&R. Just think about the non-team-related cash outlays he made last year: 1) Tour of California, Tour de Georgia, full Philly Week, Harlem Crit, etc. And I’m sure I’m missing about a half dozen other major race sponsorships. You don’t pull that kind of money out of a home equity loan . . .
ja, for sure
I think he made oodles of cash, actually.
I’m intrigued by your question about whether the team and company assets are separate though.
Any hack lawyer
can create a subsidiary or separate incorporation with a non-parental type relationship (corporate lawyers cringing now… what can I say, I do fish law). The trick is to set up a relationship in a manner that a judge won’t immediately see through and say you’re functioning as a parent anyway. As usual, something of a grey area ensues.
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 11:29 PM EST up reply actions
Then
the team gets paid. Yay!
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 16, 2008 4:12 PM EST up reply actions
As a hack corporate lawyer,
I agree with Chris’s analysis. Maintaining the proper controls/relationships is harder than setting it up originally.
right, that's the trick
The legal structure and division is a no-brainer. Making MB operate in a way that respects it? Ha. Good luck.
(old) new news
So, in my imaginary world where the riders are going after R&R assets? They’d probably have to get in line behind someone who can afford real lawyers. From a May 08 article:
Victoria Beckham is said to be suing the Los Angeles-based fashion label that once made her line of super-expensive jeans. The erstwhile Posh Spice claims that haute denim brand Rock & Republic owes her as much as $100 million following her split with the company, according to reports published Sunday in Britain’s Daily Mail newspaper.
Now, I know this is like citing Drudge for political news (i.e., that may have turned out to be completely untrue), but it was just too much fun not to share.
Lawyer
Time for Bob Mionske to branch out of torts. He could outmaneuver posh.
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 11:30 PM EST up reply actions
That story seems to have been knocking around for a while
I’m sure I read it some time back in ’07.
The UCI had a bank guarantee from Mercury too
I’m not quite sure what happened to that money in the end.
ooohhh wait wait
what was the name of the other American team that didnt pay their riders for months….
Indeed
I am sure other riders have thought about whether any other offer out there would be more stable than RR. Not that other teams are all stable, but RR is basically a one-year-old startup.
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 8:13 PM EST up reply actions
huh
That statement is bizarre, because we already know that Bahati can’t ride US Pro. So, uh, what are they smokin’ there at Rock?
well they can still (probably) replace Dominguez by Bahati on the UCI roster
if nothing else changes
oh, right
I forgot about that part – sheesh, I need a cheat sheet to keep track of this story. The Fuji guys.
Hm...
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 8:54 PM EST up reply actions
Dang
Can’t you people let me ride the trainer for once?
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 15, 2008 11:33 PM EST up reply actions
I thought you did flowcharts while you rode?
huh? Must’ve been Drew I was thinking of.
"The most wasted day is that in which we have not laughed."
Perfect
You’re in charge of being in shape, and I’ll be in charge of being overweight.
CQRanking.com, you complete me.
by Chris Fontecchio on Dec 16, 2008 4:13 PM EST up reply actions
rain or shine?
YOu live in California. When was the last day that it didn’t shine down there? I bet you wouldn’t feel the same if you lived in Chicago.
I'll 2nd that.
Come on up Gav! We had snow yesterday (made a beautiful mess of most peoples commutes home) and we’re in for an ice storm tomorrow afternoon, just in time to really screw with commute times. I haven’t seen the sun in a while but I heard a rumor it was out for a brief bit today. No one will vouch for that though. Sweet Home Chicago.
"The most wasted day is that in which we have not laughed."
no doubt about Walker to Fuji now
Walker was announced as one of the Fuji-Servetto riders for the TDU today (as was Dominguez actually).
Hilton Clarke has also signed with Fuji
thanks to Dominguez, who lobbied to have him on the team as well. Link
"If you go (with a break), you can either win or not win. If you don't go for it, you definitely won't win."
~ Jens Voigt
wait, wait - the riders were already replaced by David Martin Velasco and Aaron Kemps
so how is Bahati going to defend his title? Unless Ball plans on promoting him in June and demoting another guy?
sheesh
these days?
about a third of what you paid for them. Can’t say that I don’t take a bit of pleasure in that . . .
Reason #1003
why being a pro rider is such a hard way to make a living. At any time your checks can stop coming in and you don’t have a whole lot of recourse. Nice timing too.
Sheesh.
"I have come here to chew bubblegum and kick ass... and I'm all out of bubblegum."
Holy Crap! 30 new comments and none about Bennati
it’s a mother f**king Rock Slide!
"If you go (with a break), you can either win or not win. If you don't go for it, you definitely won't win."
~ Jens Voigt
Sadly I was expecting a Benna shot with all the comments that popped up in like an hours time. :-(
"The most wasted day is that in which we have not laughed."
No, I would hope he would sit one or two out
but the jump in comment count certainly had me thinking he was here. LOL!
"The most wasted day is that in which we have not laughed."
It's so nice of him to share like this.
Who would’ve thought RR could’ve created such a gathering here?
"The most wasted day is that in which we have not laughed."
Benna is indeed well known for his generous nature, amongst other things....
Remember how he didn’t block Cav at the Giro? I would have if I’d been him!
Lexicon additions...
Rock-slide – The inevitable flood of “Michael Ball is a toolbox/asshat/jackass” comments that typically follow any mention of his name
Lance-slide – Similar to a “Bennalanche” or a “Rock-slide” but is triggered by any mention of HWMNBN
Hmmm, now where did I put the Shun button.................
"I have come here to chew bubblegum and kick ass... and I'm all out of bubblegum."
I keep mine next to the EASY button.. it doesn't work very well either...
by Christopher See on Dec 16, 2008 9:33 AM EST up reply actions
Oh, I found mine
Just considering whether I should use it or not on Majope.
(drums fingers)
"I have come here to chew bubblegum and kick ass... and I'm all out of bubblegum."
small puffs of smoke appear as Drew does heavy thinking
Carlos Sastre - Tour de France winner - Born From Jets
picture a
donkey asleep under a tree, with flies buzzing around its head
"I have come here to chew bubblegum and kick ass... and I'm all out of bubblegum."
Sheesh.
After I went and made your heart beat faster with the Flanders post.
Google is my domestique.
Yeah, that's true
All is forgiven
"I have come here to chew bubblegum and kick ass... and I'm all out of bubblegum."
Ha... you had Drew thinking you were scared. Good one. :-)
"The most wasted day is that in which we have not laughed."
Is it really 24 hours later, and we don't have a single
pissed/laid off staffer/rider anonymously talking to the media? The gun, perhaps it was jumped.
Andy Shen! Half of TOTO
He is a god. Or demi-god. Mustn’t forget Schmalz.
by NE Observer on Dec 16, 2008 10:42 PM EST up reply actions
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