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USPS sues Lance Armstrong, seeks repayment of sponsor dollars

After a long partnership, the USPS is suing Lance Armstrong for over $17 million, a suit which Armstrong’s lawyer calls “opportunistic.” This case is about more than just brand management, on both sides.

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USPS vs. Lance Armstrong: tensions mount

When an organization chooses to publicly sponsor someone in a marketing campaign or for a public event, there is a certain amount of risk involved. If done right, the positive performance and reputation of the person sponsored reflects well on the sponsor; but if the person that they choose violates a rule or law, or does something deemed offensive by the general public, that negativity can hurt a brand’s reputation.

Such is the case brought forth by the United States Postal Service on Tuesday; USPS filed a lawsuit against Lance Armstrong citing that the cyclist was “unjustly enriched” while competing for his Tour de France titles. Government officials decided to move forward with a lawsuit because Armstrong and his teammates knowingly used banned substances, and did so in a way to help avoid detection.

In order to win this argument, the government will have to prove that USPS was defrauded and damaged as a result of Armstrong’s actions.

Lawsuit called “opportunistic”

In the official filed complaint, officials state: “Riders on the USPS-sponsored team, including Armstrong, knowingly caused material violations of the sponsorship agreements by regularly and systematically employing banned substances and methods to enhance their performance,” the complaint says.”

For these reasons, USPS argues that Armstrong and his teammates thereby violate their right to receive payments and benefits associated with the sponsorship. According to the filing, USPS paid Armstrong $17 million beginning in 1998 through 2004. Armstrong’s attorney sees the lawsuit as “opportunistic” and argues that USPS was not defrauded.

Armstrong admitted to using drugs in January, years after his teammate Floyd Landis tested positive for performance enhancers, and both were stripped of their titles. During the years that Armstrong competed in the Tour de France, he was highly revered for his story of triumph and his team was preferable for sponsorship.

The USPS argues that because the cyclists violated completion rules, they should thereby forfeit any payments or benefits obtained as a result of the sponsorship.

Destiny Bennett is a journalist who has earned double communications' degrees in Journalism and Public Relations, as well as a certification in Business from The University of Texas at Austin. She has written stories for AustinWoman Magazine as well as various University of Texas publications and enjoys the art of telling a story. Her interests include finance, technology, social media...and watching HGTV religiously.

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Business News

A real life robot battle: America vs Japan

(BUSINESS NEWS) Robots are real and America is fresh out of a battle with Japan in a real life robot battle royale.

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What’s the future of sports look like?

Giant. Fighting. Robots.

That’s right, your childhood dreams have arrived, at least I know mine have.

Two years ago, American robotics firm, MegaBots Inc., challenged Japanese rival, Suidobashi Heavy Industries, to a showdown of the battle of the mechs. The challenge was accepted, but with one simple caveat: the inclusion of melee combat.

And so the Super Heavyweight Title Fight two-years in the making premiered on leading social video platform, Twitch, yesterday evening to tech and sci-fi fans alike who waited with baited breath for such an event.

In order to prepare for the match, the American team needed to build a new bot capable of fulfilling the duel requirement, as well as one that would be a force to be reckoned with against the Japanese fighting machine.

MegaBots, or “Team America,” was able to crowdfund the robot battle through a Kickstarter campaign earning over $500,000 by just under 8,000 backers. With this campaign, they were also able to upgrade their Mk.II behemoth that would be entering the rumble.

Meet Eagle Prime.

More metal. More power. More American.

According to MegaBots, Eagle Prime “weighs in at 12 tons, stands 16 feet tall, seats two, is powered by a 430 horsepower V8 LS3 engine, and costs a cool $2.5M.” This robot is massive; a good foot higher than its predecessor.

Founders Matt Oehrlein and Gui Cavalcanti commented on the design of Eagle Prime, quipping, “We made it huge and strapped guns to it;” as American as apple pie.

Suidobashi’s robot, KURATAS, stands a few feet shorter (about 13 feet tall), but carries a more sleek and elegant design to it. With a tripod-wheeled base and twin Gatling BB canons with the ability to fire 6,000 bullets per second, it seemed a toss-up as to who would reign supreme in the first mech battle.

While this sounds like an epic episode of awesomeness, don’t expect Pacific Rim level combat just yet. Rather than give a play-by-play of the event, I’ll just tell you straight away that Eagle Prime came out on top in the brawl. To be fair though, it really wasn’t much of a brawl.

Eagle Prime had two years of extra time to be built in preparation for such a match against Kuratas. It was made bigger (and for “funzies”, added patriotic colors to the bot as well as a head of a bald eagle for a “head” as well as a chainsaw-sword-type of device that likely, and ultimately, ended up costing Kuratas a pretty penny in damages.

Really, Kuratas had no chance: there was a bit of overkill on the part of Eagle Prime.

The chain-sword alone raises some safety concerns, especially when we’re talking the future of sports. That said, the pilots of both mechs, Eagle Prime piloted by both Oehrlein and Cavalcanti and Kuratas by Kogoro Kurata, could use a bit more protective gear than helmets, even if the robots in action look like a couple of toddlers fighting.

But hey, it’s a start. And that’s the point.

Maybe one day we will be in giant stadium arenas watching huge robots piloted by humans hashing it out, but we’ve got a long ways to go. And maybe, just maybe, these things could be of use in natural disaster efforts.

Who wouldn’t want to be saved by an Optimus Prime-like, human-piloted “robot” that could withstand whatever was thrown its way?

It’s going to be an expensive endeavor that will require a nice chunk of change in investments and endorsements, though I will say, what a time to be alive.

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These stores refuse to start Black Friday early

(BUSINESS NEWS) There is a rising trend of stores being pressured to open their doors earlier and earlier each holiday weekend but these companies refuse.

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This year, Target, Walmart, and Best Buy are among a group of retail super villains who have decided it’s appropriate to begin the Black Friday shopping nightmare on Thanksgiving Day, with some opening as early as 5pm on Thursday.

As someone who has only had the misfortune of working the retail tornado of Black Friday once, I would never wish it upon anyone. Yet many stores feel pressured to begin the doorbusters earlier every year.

To compete with online shopping, brick-and-mortar retailers implement drastic measures to get customers in stores during the discount season.

Last year, eMarketer reported internet users in their survey were likelier to shop online during Black Friday and Cyber Monday. This comes as no surprise to anyone who’s been watching retail stores crumble as online shopping continues to dominate the market.

To lure in shoppers, physical stores must come up with deals so alluring that people would kill for them.

Literally. I just googled “did anyone die on Black Friday last year” and found out that there’s a handy site called Black Friday Death Count. The answer is yes, some people died last year in Black Friday-related incidents, and in fact two of the three deaths took place at separate Walmarts.

So that makes this year’s disturbingly early foray into deal hunting even less enticing.

While I don’t hold Thanksgiving sacred by any means, moving the even unholier Black Friday back to impede on a holiday is ludicrous. But a handful of heroes are saying no seriously guys, we’re not doing this.

Over fifty retailers are collectively putting their foot down, and will remain closed on Thanksgiving Day. While some may still be party to next-day discounts, they’re at least taking a stand.

Here’s a list of all the places you can’t go on Thanksgiving, because mercifully they’re closed:

  • A.C. Moore
  • Abt Electronics
  • Academy Sports + Outdoors
  • At Home
  • BJ’s Wholesale Club
  • Blain’s Farm and Fleet
  • Burlington
  • Cabela’s
  • Cost Plus World Market
  • Costco
  • Craft Warehouse
  • Crate and Barrel
  • DSW – Designer Shoe Warehouse
  • Ethan Allen
  • Gardner-White Furniture
  • Guitar Center
  • H&M
  • Half Price Books
  • Harbor Freight
  • Hobby Lobby
  • Home Depot
  • HomeGoods
  • Homesense
  • IKEA
  • JOANN Fabric and Craft Stores
  • Jos. A. Bank
  • La-Z-Boy (all corporately owned stores)
  • Lowe’s
  • Marshalls
  • Mattress Firm
  • Micro Center
  • Music & Arts
  • Neiman Marcus
  • Office Depot and OfficeMax
  • Outdoor Research (closed Black Friday too)
  • P.C. Richard & Son
  • Party City
  • Patagonia
  • Petco
  • PetSmart
  • Pier 1 Imports
  • Publix
  • Raymour & Flanigan Furniture
  • Sam’s Club
  • Sierra Trading Post
  • Sportsman’s Warehouse
  • Sprint (Corporate & Dealer Owned Stores; Mall Kiosks May Open)
  • Staples
  • Sur La Table
  • The Container Store
  • The Original Mattress Factory
  • TJ Maxx
  • Tractor Supply
  • Trollbeads
  • Von Maur
  • West Marine

And while that’s a pretty hefty list, the fact remains that many unfortunate employees will have to show up to work on Thanksgiving when they should be taking naps, or avoiding helping their family clean up after lunch.

Thinking about some retailers’ decision to open a day early for Black Friday almost makes Cards Against Humanity’s crowdfunded hole stunt last year seem reasonable. Maybe if we’re lucky, the tradition of Black Friday will get sucked up in a black hole, never to plague us again.

I guess staying home is also an option. If you opt into the shopping this year, stay safe. And if you choose to do so on Thanksgiving, maybe just don’t tell anyone.

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Amazon is extending its takeover to sportswear

(BUSINESS NEWS) As Amazon continues its quest for total retail dominance, they are beginning to try their hand with sportswear.

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Because Amazon won’t settle until it controls every single market ever, the online retailing giant is, reportedly, gearing up to start offering its own sportswear line.

Rumors that the company might get into the workout gear game started circulating earlier this year when the company posted job listings for brand managers to help create “authentic activewear private label brands.”

They hired a brand manager for athletic wear in January.

Amazon has already been dabbling in the world of fashion, having created eight clothing brands since early last year, including a men’s shirt brand called Buttoned Down that is offered to Prime customers.

Insiders say that, while no long-term contracts have been signed so far, Amazon is negotiating with Makalot Industrials Co., a producer that makes sportswear for Gap, Uniqlo, and Kohl’s, as well as Eclat Textile Co., who provides textiles for Nike, Lululemon, and Under Armour.

Both Makalot and Eclat are based in Taiwan.

Apparently, these manufacturers are making small test batches for Amazon so they can run a trial on the concept. The fact that Amazon is working with experts in this market means they are serious about making a competitive, quality product.

Amazon currently sells about $10 billion worth of apparel, making it a serious competitor with brick-and-mortar retailers.

The workout wear market is a pretty big deal, so it would obviously be profitable if Amazon can come out with a good product. Customers are already crazy about Amazon’s online convenience and quick delivery, so they may be happy to find more options for sneakers and yoga pants.

On the other hand, private label brands that Amazon is already selling, such as Goodthreads and Lark & Ro may feel betrayed. Other sportswear brands can’t be too pleased either, with Nike reporting declines this quarter and Under Armour reducing its annual sales forecast.

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