Louisville 2013 organizers terminate Exergy sponsorship deal
Energy firm is months behind in payments; promoters are certain event will go off as planned
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Louisville 2013 organizers on Wednesday terminated their sponsorship contract with Exergy Development Group. The alternative energy group, which signed on to back the 2012 and 2013 masters cyclocross world championships and the 2013 elite worlds in Louisville, Kentucky, has been in arrears in payments for much of the year and organizers pulled the plug today.
“Exergy is currently $250,000 arrears in payments with an additional $100k coming due and our partners are all in agreement that it is in best interest of event that we terminate the sponsorship agreement now. At this point, we can no longer count on Exergy’s support,” Hanscom told VeloNews. “This event will definitely take place in Louisville and we’ve been working with USA Cycling, the UCI and our partners in Louisville to close the financial gap, which is a significant number. We’re generating revenues from other sponsor sources and we still need help.”
While Hanscom and partner Bruce Fina face a large funding gap after their attorney sent a termination letter to Exergy CEO James Carkulis Wednesday evening, the former tells VeloNews that USA Cycling, the Louisville Sports Commission and the UCI have stepped in with logistical and sponsor acquisition support to make sure the event is a success.
“It’s going to be fantastic, but fantastic without Exergy,” Hanscom told VeloNews. “We’re in a full-court press right now. The operational aspects of the production have been overwhelmingly positive. The venue is a world-caliber track and received incredibly positive feedback after the Derby City Cup. We have no doubt Louisville will make U.S. cycling proud.”
Carkulis was not immediately available for comment.
On Tuesday Carkulis announced that the company was discontinuing sponsorship of its men’s Continental road team. The company has missed or been late in payments to vendors for the Exergy Tour and Amgen Tour of California in 2012. Hanscom previously replaced Exergy with Trek, WD-40 BIKE and other sponsors to fill a funding gap it left at the U.S. Gran Prix of Cyclocross.
The masters world cyclocross championships run January 29-February 1, with the elite worlds taking place February 2-3 at Eva Bandman Park in Louisville, Kentucky.
This story is breaking. Check back to VeloNews.com for updates.