http://www.velonews.com/article/74387/trek-announces-an-end-to-deal-with-greg-lemond
Trek Bicycle Corp. is dropping LeMond Bicycles from its line and going to court to sever a 13 year licensing agreement with Tour de France champion Greg LeMond, Trek president John Burke told employees Tuesday morning.
Burke cited LeMond's public comments regarding doping allegations against Lance Armstrong and others, LeMond's decision to offer a mass merchant accessory product line in 2000, and his "inconsistent" commitment to the brand.
"Greg's public comments hurt the LeMond brand and the Trek brand," Burke said.
"Despite our repeated efforts to persuade Greg to focus on selling his bikes, he continued his personal attacks," he said.
VeloNews is seeking LeMond's reaction.
Armstrong rode Trek bicycles to seven Tour de France victories and remains a key Trek spokesman.
Burke said Trek had rescued LeMond's bicycle company from near bankruptcy when it licensed the LeMond Bicycles name in 1995. He said the brand has failed to grow substantially recently, despite an overall growth in the road bike market, in part spurred by Armstrong's career.
He said the brand's annual sales are about $15 million and that it sells about 12,000 bikes a year. Trek officials declined to say how much the company has paid LeMond during its relationship.
The LeMond-Trek licensing agreement was set to end in 2010. Burke said in recent years he had encouraged LeMond to find another partner but that LeMond had been unsuccessful.
LeMond and Trek settled a lawsuit that LeMond filed in 2004, and when LeMond filed a similar suit last month, Trek executives decided to try to end the relationship immediately.
LeMond's latest lawsuit charges that Trek, in violation of the licensing agreement, has been trying to "wind down" the LeMond brand, and has failed to develop it overseas. It also charges that Trek has tried to stifle his comments about doping in cycling.
Burke said Trek dealers had complained about LeMond's comments regarding Armstrong and that dealers said LeMond's comments were hurting sales of LeMond and Trek branded bikes. LeMond's latest lawsuit specifically denies that his comments have hurt sales of either brand
Burke said Trek had taken "extraordinary steps" to support the brand.
"Greg was like a member of the family," Burke said.