Lance Armstrong deals with SRAM bicycle parts; Joins Lehman Brothers investment strategy

Does anyone understand the world of high finance?  If so, a room in the White House could use a little help this weekend working on the details on the 700B bailout of the investment banking industry.  Apparently trying to add his patriotic share, recently unretired Lance Armstrong will ride in advertisement for SRAM, a 500M cycle parts company. To Bike Radar:

While a lot of recent news about Lance Armstrong has overshadowed the wheeling and dealing happening at the Interbike trade show, one aspect of his return actually has relevance specific to the industry. The Wall Street Journal reported Thursday that Armstrong is investing millions of dollars into component maker SRAM, as part of the deal with Lehman Brothers Merchant Bank, subsidiary of the recently collapsed investment bank Lehman Brothers.

While the two entities are relatively separate, the infusion of cash from Armstrong is expected to have a positive impact. Lehman had actually courted Lance prior to any knowledge of his comeback, beginning as far back as 2007. And the fact that Armstrong will be riding SRAM as part of the existing sponsorship with Astana is apparently just coincidence. "The funny thing, when we did the deal with Lance we were unaware that he was planning to return to competitive cycling," Charlie Moore, a managing director of Lehman Brothers Merchant Banking told WSJ. "It's serendipitous."

And the agenda of cancer awareness?  Apparently a businessman can ride for cancer awareness as well as make a side deal as a consultant and adviser for a fine capitalistic firm.  Can these two goals co-exist?

"It's great to have that kind of intelligent money, really knowledgeable money to be part of the company," SRAM president Stan Day told Cyclingnews. "It's a small piece of the total investment but it is a meaningful piece to be sure. We are excited that Lance is interested in riding are components and investing in our components, and that is a great combination."

"We certainly weren't the first in the industry to hear about it, but it came onto our plate three weeks ago," said Day. "We were as surprised as the whole industry but also pleased. Lance brings great credibility and great draw to the industry and it is good to have him back."

The combination of Lance as a technical advisor, investor and now sponsored rider is quite a coup for SRAM in terms of battling for a share of the market with Armstrong's former component maker Shimano. Armstrong had been with the Japanese company for so long that he still rode their components at Wednesday night's Cross Vegas race at Interbike.

And that's about cancer awareness?  More:

"We couldn't switch his bike out and have him go into a race right away!" Day laughed. "But he's ridden our product a lot over the last several months and he is comfortable with it. He likes the weight, stiffness and the use of carbon. It will be interesting to work him closer and get his ideas. We will incorporate that with our other athletes' feedback."

Let's move some product. From Cycling News:

The success of SRAM's re-entry into the road market has paid off handsomely in the form of Grand Tour success with Team Astana, who race on SRAM Red-equipped Trek Madones. Now, with the news of Lance Armstrong returning to the pro peloton in 2009, there's a grand assumption it'll be with Johan Bruyneel's Team Astana. Armstrong has ridden Trek since 1998, but has been a Shimano-sponsored athlete his entire career.   Day is pretty excited about the prospect of working with Armstrong, although at this point it's pure speculation until Armstrong announces his plans at the Clinton Global Initiative in New York City September 24.

"If Lance wanted an executive to train with, I'd be willing," Day said, "but he may need to find someone more capable than me! I commute to our downtown Chicago office every day. I also like to ride mountain bikes in the Northwoods of upper Michigan. Road riding is difficult in downtown Chicago, so it's a little more challenging. It's safer to put the bike on the car and drive an hour to get out of rush-hour traffic!"

The Wall Street Journal on the deal link here.

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