From Newsgroup: uk.rec.cycling


rCLI was getting ripped off left, right, and centre by the people looking
after merCY: Bradley Wiggins slams rCLsofa surfingrCY reports as rCLsensationalismrCY
and explains bankruptcy rCLmessrCY in candid Lance Armstrong interview

rCLI never did the sport for the money, but I realise I should have paid more attention to it. I wasnrCOt aware of the mess until I was deep in retirement,rCY says the 2012 Tour de France winner, who was declared bankrupt in June

by RYAN MALLON
TUE, AUG 13, 2024 16:20

Two months after being declared bankrupt, amid reports that he had rCLlost absolutely everythingrCY and had been forced to rCLsofa surfrCY at the homes of friends and family, Sir Bradley Wiggins has finally broken his silence on
the financial problems which have plagued him since retiring from
professional cycling in 2016, telling Lance Armstrong in a candid podcast interview that he was taken advantage of and was unaware of the severity of
his issues until he had retired.

In the revealing hour-long chat with the disgraced Texan, recorded for ArmstrongrCOs The Forward podcast (link is external) (on which Wiggins had appeared as a guest during the Tour de France), the five-time Olympic gold medallist explained the context which led to JunerCOs bankruptcy declaration, while criticising the tabloid press in the UK for stoking the situation by harassing his family and sharing rCLsensationalistrCY rumours about the former Team Sky leaderrCOs financial plight.

In early June, the news broke that Wiggins, BritainrCOs first male Tour de France winner, had been declared bankrupt, and was on the verge of being
forced to sell his eight Olympic medals and other trophies gained during
his glittering, if now arguably tainted, cycling career.

The news came after a turbulent few years for the 44-year-old. In 2020, his image rights company Wiggins Rights Limited entered voluntary liquidation,
with creditors owed over -u300,000.

In 2022, Wiggins entered an Individual Voluntary Arrangement to pay off his creditors and avoid bankruptcy, but last November it was revealed that liquidators had yet to receive any of the almost -u1 million they claimed
from Wiggins Rights Limited the previous year, in part to pay off an outstanding directorrCOs loan.

And following his bankruptcy case, the Daily Mail reported that the 2012
Tour winnerrCOs lawyer had told the newspaper that Wiggins had rCLlost absolutely everything, his family home, his home in Mallorca, his savings
and investmentsrCY and rCLdoesnrCOt have a pennyrCY, being forced to rCLsofa surfrCY
and stay with friends and family.

However, in his recent interview with Armstrong (link is external), Wiggins
was scathing of these claims made in the tabloid press rCo despite being attributed to his own lawyer rCo and dismissed them as rCLsensationalismrCY.

rCLThat is where the sensationalism came in, and thatrCOs where this story ran amok, and continued for several weeks,rCY Wiggins said.

Explaining the background that led to his current financial woes, which he describes as a rCLcomplete messrCY, the 44-year-old said: rCLI was made bankrupt
through a company. I had three companies rCo my image rights company that handles all my image rights, endorsement deals, various other things.
Connected to that I joined XIX Entertainment, Simon Fuller, in 2014. And
they set up various joint ventures with various clubs and companies, drinks suppliers, all different things, whatever endorsements.

rCLOff the bottom of that rCo so these companies were all subsidiaries of the top company, which was my image rights company. Now that was done, as we
see now through the lawyers, that was done purposefully so the top company would always take the hit if there was any trouble with the other ones.
They should have been separate companies.rCY

Wiggins then claimed that he was forced to invest his own money into Team Wiggins rCo the UCI Continental team the British rider established in 2015, after leaving Team Sky, to enable him to prepare for the track programme at
the Rio Olympics the following year rCo due to an overspend of over -u300,000.

rCLAnd the third company was a cycling team called New Cycling Limited, which was Team Wiggins, which was a team that was set up to facilitate the
national track programme, which was the team pursuit, my last cycling
career goal in Rio,rCY he said.

rCLThat team should never have made a loss, it should never have made a
profit, it was purely to pay the riders of the team, their wages and handle
the budget. That teamrCa was managed by joined XIX Entertainment and run on a daily basis by Andrew McQuaid, who was the manager of that team. I was made
a director, but I had no involvement, I was still racing.

rCLThe budget was -u650,000. But in year one, for six riders it spent a million, so I had to prop that team up with my own money from Wiggins Rights.rCY

He continued: rCLSo there was a lot of money coming down from the top company to prop up these ventures that werenrCOt making any money, while management were taking slices off from their expenditure and people they were putting
in place. It was a complete mess.

rCLAnd because they were all subsidiaries of the one company, the top company took the biggest hits. And it ran up a debt of nearly one and a half
million, which was given to me as a directorrCOs loan. But I wasnrCOt the director at the time, and I had to be made a director to take the loan
without my knowledge. I was still racing my bike at the time.

rCLIt was a complete mess, and I wasnrCOt aware of the mess until I was deep in retirement.rCY

Wiggins also described how he was forced to pay back taxes and spend
additional money on legal fees after losing an employment case that reclassified him in the UK as an employee of Team Sky, rather than a self-employed athlete.

Bradley Wiggins with Union Flag, Giro Napes 2014 (c) Gian Mattia D'Alberto, LaPresse, RCS Sport
(Gian Mattia D'Alberto/LaPresse)

rCLWhen I left Sky, because I was a British resident, I never lived abroad rCo the tax laws changed,rCY he told Armstrong.

rCLAnd when I started with Team Sky, as most cyclists, I was self-employed
with an image rights company. Towards the end of my tenure with Team Sky,
they were involved in a two-year case with HMRC for everyone who worked at
Sky to fight whether they were deemed employed by Sky.

rCLI was acting as a witness for Sky in that case against HMRC and spent an enormous amount of money on legal fees becauserCa if I was deemed employed, IrCOd have had to back pay taxes and National Insurance etc.

rCLIn the end, I was deemed employed so I had to go back five years and pay
all the taxes and every bits and bobs and pieces. And Sky knew that was happening from the day I signed with them.rCY

Reflecting on his own approach to his finances, the former Hour Record
holder concedes that he perhaps should have paid more attention to money
during his career.

"One of the things I regret is I never paid attention to my financial
affairs when I was racing,rCY he said. rCLYou asked before if IrCOd got any money
for riding the Giro [in 2013, after winning the Tour the previous year],
and I didnrCOt. Because I always assumed money would be there forever, that IrCOd always have a value that people would pay for.

rCLI never did the sport for the money, but I realise I should have paid more attention to it. Because you get to the point where I am in this situation
now, because of the mess thatrCOs been created, and because itrCOs been rumbling on for quite a few years now rCo this hasnrCOt just happened overnight. ItrCOs now in the hands of receivers, who can go through
everything.

rCLBecause I was getting ripped off left, right, and centre by the people looking after me, accountants as well. Which is one of the things that
happens to athletes you know, you make a lot of money and if you havenrCOt
got your eyes on it, people take advantage.

rCLAnd this will all come out in the wash over the next few years, itrCOs just going to be a hell of a headache to get right.rCY

Once again turning his attention to the press, Wiggins concluded: rCLThe hardest thing to deal with though is the tabloid newspapers in the UK. They were aware of it before it even went on the insolvency register, which
shows that there must have been someone inside that leaked it to the press.

rCLAnd once itrCOs in the press, what ensued for the next couple of week was a paparazzi-style harassment of every member of my family, trying to dig up
dirt and stories and things like this, just to add weight to the fact that
they think yourCOre done and dusted. And the tabloids have thrown large
amounts of money at me, when they think yourCOre on your arse, to tell your story. I refuse to dance with the devil on this occasion.

rCLIt will be alright. But that's the first time IrCOve commented on it since that happened.rCY

<https://road.cc/content/news/bradley-wiggins-explains-bankruptcy-lance-armstrong-309855>
--
Spike
--- Synchronet 3.21a-Linux NewsLink 1.2