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SCA provided the insurance cover taken out by Tailwind to cover the risk that Tailwind would have to pay the bonus which Armstrong was contractually entitled to from Tailwind if he won the TdF in 2001-4. SCA would have been paid a premium by Tailwind for providing the cover, and the $10 million includes interest, so SCA aren't necessarily out of pocket. LA definitely is.
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For @Ramsaye everything that is fat is fine.
It's not a fine. Didn't they go pay him a bonus for his win (s). On condition he didn't dope. They reckon its 2 mil short of what sca actually paid and lost.