Did Gwin Breach His Contract With Trek World Racing?
Source: 23 degrees
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The last several weeks have been a very difficult period for our company as owners of the Trek World Racing program. Despite the fact that on August 9 of last year, Aaron Gwin signed a legally binding Letter Of Intent with our team for the next three seasons, his agent wrote an email to the team in mid-December stating he had decided to race for another bike brand. Mr Gwin confirmed his agreement with our team in public statements, and he and his agent repeatedly confirmed the existence of, and commitment to, the agreement in written correspondence with us. Yet, only weeks before the team was required to submit the official team roster to UCI, Mr Gwin informed the team that he was abandoning TWR in total disregard of his contractual obligations.
The team reached out on several occasions in December in order to try and remedy whatever concerns Mr Gwin had, but these were ignored until the team received a letter from his Attorneys on December 27 stating he would not ride for our team. In the interests of the team and our sponsors, we are actively pursuing all options open to us at this point, including legal action, and remain completely surprised by Mr Gwin's unprofessional actions.
Team Director Martin Whiteley says: "This has not been an easy time for us. In the bigger picture however I find positivity in the fact that the Trek World Racing program will continue regardless of the outcome of this dispute, as no single rider is bigger than the team as a whole. Every rider who has been on our Downhill program has had the best years of their career with us, and we will continue to bring on talented riders. The team has a history of helping riders win who had not previously won, including Aaron Gwin. It's our intention to continue that type of record with new talent. I would personally like to acknowledge the complete support and loyalty we've received from our title sponsor Trek Bikes who have been unwavering in their commitment to the program since this news broke. In the interests of the fans, we hope this matter will be resolved sooner rather than later".
The last several weeks have been a very difficult period for our company as owners of the Trek World Racing program. Despite the fact that on August 9 of last year, Aaron Gwin signed a legally binding Letter Of Intent with our team for the next three seasons, his agent wrote an email to the team in mid-December stating he had decided to race for another bike brand. Mr Gwin confirmed his agreement with our team in public statements, and he and his agent repeatedly confirmed the existence of, and commitment to, the agreement in written correspondence with us. Yet, only weeks before the team was required to submit the official team roster to UCI, Mr Gwin informed the team that he was abandoning TWR in total disregard of his contractual obligations.
The team reached out on several occasions in December in order to try and remedy whatever concerns Mr Gwin had, but these were ignored until the team received a letter from his Attorneys on December 27 stating he would not ride for our team. In the interests of the team and our sponsors, we are actively pursuing all options open to us at this point, including legal action, and remain completely surprised by Mr Gwin's unprofessional actions.
Team Director Martin Whiteley says: "This has not been an easy time for us. In the bigger picture however I find positivity in the fact that the Trek World Racing program will continue regardless of the outcome of this dispute, as no single rider is bigger than the team as a whole. Every rider who has been on our Downhill program has had the best years of their career with us, and we will continue to bring on talented riders. The team has a history of helping riders win who had not previously won, including Aaron Gwin. It's our intention to continue that type of record with new talent. I would personally like to acknowledge the complete support and loyalty we've received from our title sponsor Trek Bikes who have been unwavering in their commitment to the program since this news broke. In the interests of the fans, we hope this matter will be resolved sooner rather than later".
www.23degrees-sports.com
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"Proud to announce that I will be riding for Specialized moving forward. There's much more to the story than what's been shared and i'm looking forward to setting that straight very soon. Thanks to my team and fans who've had my back in this time" 22 minutes ago.
www.twitlonger.com/show/kl8jle
Just found some words from Aaron
Call me crazy, but that seems like basically a jab at Gwin. I understand he's mad about the situation, but really?
And Matt-W, he did not sign for three years. There was no contract. Just a letter of intent. Those two are vastly different things.
I would be happy to stand in for Aaron Gwin this season. Please send a Session 9.9 to me, I promise I will w̶i̶n̶...try.
Ollie.
well i wasn't like that, because i reckon Gwin shall rip it up on a Demo, no matter the bitterness of the trek world racing executives and what they have to say about it.......
Go on gwinny! TWR are just jelly, bro
Go to gamestore to reserve a game that is going to come out in 30 days. You can pre-order it, and pay the reserve-a-spot price but when does it EVER mean you MUST buy the game. All you did was say, hey I want this game, doesn't mean I'll get it. My spot is reserved, but until I pay for the real game/deal, I'm not under any LEGAL expectation to buy the game.
All attorneys/legal expertise will say the same thing. From the whole situation, the manager of Trek is the one who is flipping out a little bit. It's not like Aaron will go back to Trek anyways after such threatening. Besides, Aaron hasn't shared his story yet, and you definitely need that to have some kind of argument at the very least.
Whitely guy, from what I hear isn't the nice guy...there's probably many reasons why Gwin took this convenient and golden opportunity to distance himself with Trek which is dealing with the Lance ordeal (sadly).
1. Trek World Racing and Trek are not the same. TWR is not a Factory Team
2. Gwin signed a letter of intent...not a contract
3. TWR tried to steal Minnar from Santa Cruz Syndicate a few years ago the same way
4. Monster may not be sponsoring specialized this year
5. More details will be available once this truck arrives.
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"Proud to announce that I will be riding for Specialized moving forward. There's much more to the story than what's been shared and i'm looking forward to setting that straight very soon. Thanks to my team and fans who've had my back in this time!"
Gwin is a good guy and IMO, we should wait until we know the full story before we make judgements.
Something wrong with the number of comment here
A “letter of intent” is also commonly known as a “memorandum of understanding”; a “term sheet” or a “discussion paper”. Simply put, a letter of intent is a document that outlines the general plans of the parties in a business deal before a formal business agreement is drawn up by lawyers for signing. Although a letter of intent is a document in writing, it is merely a more formal form of a “gentlemen’s agreement”. Take note that it does NOT create a legally enforceable agreement between the parties.
was probably their most marketable asset, and they were counting on him to sell mtb's now that their image in road bikes has taken a big blow because of it's close association with Lance. Trek isn't just mad, they are scared for the future.
While it is highly unlikely (but not impossible) that a Court would deem a LOI a final contract concerning Gwin's employment/sponsorship, it may still be a valid contract concerning the terms of the negotiations. Gwin may have committed to negotiate in good faith pursuant to an LOI (or MOU) and Trek may have provide non-monetary consideration in exchange for the LOI (e.g, holding off on replacing his sorry ass immediately with another rider). This alone could present a reasonable basis for a legal claim if Gwin did not negotiate accordingly and already intended to go with Specialized.
It goes without saying that there are many other potential legal claims depending on the facts. To make a definite statement as to the merits of Trek's claim (or potential claims) appears foolhardy
A Legally binding LOI is designed to allow two parties to make arrangements and have something set in place so as to save costs, time and resources for the future contractual agreement. Renegging on the LOI will cost Trek at this late stage. I am just saying
Here's the link.
You have next to no chance to know how this business works, otherwise you would not be here, writing this pish. Maybe John told Gwin to go to Spec?
It's ok to speculate but hell, this goes to bookie addicted football couch experts level. It is a very small world this MTB thing, finding a way to reach those people is a matter of few minutes, go tell them all those serious arguments of yours. I can help you to contact them, PM me
1. Will Gwin still be wearing his Redbull helmet?
2. Will we finally see Saint parts on a demo?
3. Who will fill the gap on TWR?
Pretty big surprise, since Gwin just signed the 3 season contract. . .
@Bmxerch Where on earth did you read he was running sram????
1. As has been presented by a few obviously legally adept types on here, an LOI is not a contract. Yes, it can be written with very binding language, but at the end of the day in 90% of the jurisdictions it is NOT a contract.
2. Gwin left no-one 'in the lurch'. MTB has no 'trading period' - just ridiculous calendar year contracts with clauses banning negotiation with others until the end of such period. As a president of IMTTO, Martin Whitely would know this...
3. MTB is as much about loyalty as every professional sport - so not very much at all. The fact that some of you feel differently simply shows that the marketing used to leverage off these commercial arrangements is working well, so well done to the marketing folk!
4. A real PROFESSIONAL - and I am not just talking about Gwin here, MR WHITELY - does not air their dirty laundry in public. If the legal issues get sorted on your side then fine, put out a press release, but now you will look like a bit of a tool if it turns out Gwin was, as I suspect, perfectly within his legal rights to pursue another deal. to the best of my knowledge, Gwinny has made no comments of a disparaging nature towards TWR.... he has instead acted in a professional manner.
On the legal nerd side, whether the LOI is binding or not depends on many things. Armchair "lawyers" who state definitive pronouncements without even reading the LOI or knowing the underlying facts are laughable; like TV news legal expert muppets pontificating dramatically stuffed into suits and ties. If you haven't read the LOI (and unless your sources are really really good you haven't) then just give it a rest.
"Specialized is pleased to announce the signing of Aaron Gwin to the 2013 Specialized DH program. Aaron will be supported with frames and tires. He will be joining teammates Troy Brosnan and Mitch Ropelato."
Fox, Specialized, and Shimano, what could be better?
I would be happy to stand in for Aaron Gwin this season. Please send a Session 9.9 to me, I promise I will w̶i̶n̶...try.
Ollie.
Cirest is correct that their is a distinct difference between a pre contract and a LOI. A LOI is a "we intend to" not a "we will do". If you sign a letter of intent you are only confirming that you want to enter into negotiations with the other party.
If they want to transfer after signing the LOI, they must get a release from that coaches school, who will often put restrictions on which schools/conferences they can switch too.
I mean think about it, if there was nothing legally binding, why would anyone ever bother with an LOI in the first place? They'd be nothing more than a worthless piece of paper.
My point really is just that LOI's can and are binding, at least in some respects even if minor. Like I said, if they weren't why would anyone bother ever signing them?
www.kowi.de/en/desktopdefault.aspx/tabid-77/235_read-254
en.wikipedia.org/wiki/Letter_of_intent
www.frostbrowntodd.com/resources-53.html
In many instances, the first step in negotiating a commercial transaction is to agree upon the business terms of the transaction in the form of a letter of intent or a term sheet. If not careful, these documents can have a legally binding impact and, therefore, should be reviewed by an attorney prior to being finalized and executed.
Depending on the specific language in a letter of intent, a party could be obligated to negotiate the proposed commercial transaction in good faith and not negotiate with any other parties, even if a better offer arises prior to the execution of the formal agreement. Such an obligation could arise if both parties manifest an intent to be legally bound by the letter of intent, the terms of the agreement are sufficiently definite to be enforced, and consideration has been given. In one instance, a court found that a duty to negotiate in good faith arose from a detailed letter of intent in which a party promised to withdraw a piece of property from the market and only to negotiate with the other party to the letter of intent.
In my opinion, this a bad tactic for Trek. Should've taken the high ground and thanked Gwin for his time on the Trek team and everything he did for the brand.
Legal action in public is marketing cancer... no matter the outcome, Trek will come out of this a massive loser.
But where I fully agree is we should wait to know every party's opinion (TWR, Gwin) before we have a full picture and start to make statements and judge one or the other.
"-money talks!"
Gwinn response:
"- I'm listening..."
I don't think it's all about money, if it was AG or his management would have used to offer from Spesh to bump up TWR's offer and vice versa.
Begs the question though, Sam Hill, did he jump, or was he pushed?
Look at this, banned around the time of Gwinns ageeed three year extension and now a public confession, can't blame Gwinn for not wanting to be associated with this and making a moral choice to leave the broken machine. I think this is what it is all about, I mean sure the money might be better at specialized, but I think there is more to it just money. This whole lance thing is about to get alot more messy, who,would want to be in that camp!?
Armstrong getting stripped of his Tour titles? its a huge deal in the road cycling world (I am currently more involved in that that MTB's)
the Armstrong drug-cheating scandal is seriously hurting Trek as a brand (perhaps not in direct sales to customers, but certainly in terms of "brand reputation") and its not surprising that Professional athletes like Gwin don't want to be involved in riding for Trek
And for those who think he changed becouse for the bike, its stupid... That way, we should think that Sam changed becouse nukeproof pulse is better than the Demo... Its never about the bike, its about money. And Specialized has a lot of it!! ( actually so does TREK :/ )
Maybe I am way off in left field but sure seems interesting.
The letter of intent and a contract are two different things. Let's face it, Sam's departure changed the sponsorship landscape big time. Gwin may have said to TWR "Here is what Spec just offered." And, if TWR's offers weren't as good, he didn't respond. Also, remember, this press release is only one side of the story. Maybe in the future, we will here Gwin's side of it..
It seems Gwin's deal with Spec will be different than Troy and Mitch.. Spec stated his deal is for frame and tires. That tells me they may have left the door open for Gwin to continue with Fox and Shimano..
Should be interesting...
Personally, I would love to see Trek do a PR distancing themselves from this lawsuit mess and simply say Thanks to Aaron and good luck in the future and leave TWR/ 23 degrees to fight this on their own.
Guess this confirms he'll be running TLD gear not Fox Head as some people had thought...
1)Martin Whiteley, is only pissed because he’s no longer going to get a big part of pie “Cash” that Gwin brings in. This guy is a bottom feeder that only takes on top athletes when he know he can make a $$$$ of them. The only “Legal” part that he is worried about, is the fact that his image will look bad as far as keeping a team together and the fact that money is walking out the door.
2)A letter of intent is not a “Contract” but a statement of possible intentions to extend an existing contract or resign..... at the end of the day, if nothing was signed..... nothing is legit.
3) Gwin went for the money and there are no problems with that! MTB doesn’t last forever and these guys need to make money.
4) There is no need to attack the guy or make fun of his religion.
Just my 2 cents!
but i do agree, and if its true that he's not legally bound, then shouldn't he be allowed to the right to do what he wants? he's not property he's a dude making a living.
it does sound like trek is throwing their toys out the pram so to speak...
looking forward to this years season, i wish all the riders the best and for some exciting racing..
If a huge brand like Trek and Specialized stand to make huge sums from selling bikes off the back of having the top man riding for you then you do pull out all the stops to land him! Despite it being unjust Trek need to deal with this behind the scenes instead of showing any bitterness to the public. Gwin leaving them is damaging, being bitter about it, even more so.
-just ask the man he's replacing right?
Sorry but loyalty and mutual respect do have a place in a professional athletes career. How can you expect to be taken seriously when endorsing a brand if you've shown yourself to be easily bought. Why bother trying to keep a staght face while telling everyone you dig your sponsors bike, just say "yeh these guys are paying me a lot of beans so buy their stuff please".
Sure It's about making a living but this could have been handled to better effect.
As for athletes or any celebrity endorsements of products, I don't and never have taken any endorsement seriously. They're getting paid, so they say what they are contractually obligated to say. In AG's case, he probably does think the Session9.9 is a great bike (it is), but he probably feels the same way about the Demo 8 or he wouldn't have made the move. I buy products because of price, performance, durability, ID, and whether "I" like the product or not. I could care less what a paid spokesman says about the product - nothing more than advertising.
Funny how if a company dumps an injured rider they're seen as terrible but if a rider jumps ship for more money he's just playing the game.
There would be no point from a business perspective, to use indorsments if they didn't work btw. Consider yourself an exception i guess, although I doubt you've never supported a company based on how much you like them. Everyone has an opinion on this rider or that rider (or company) regardless of how informed it is and loyalty/respect do factor in.
Obviously there are two sides to the story and the guy could be justified, but he failed to present himself professionally.
Ooh- and forget the lawyers... Love is in the air!
Probably.
Unprofessional?
Yes.
Dick move?
Abso-fawkin-lutely.
He led them to believe he was coming back and then jumped at the last second. Left them in a real bind; without a true #1 rider and team leader.
Along with his riding, he's always been known as a stand up, high character guy. This move will definitely damage that reputation and how he's viewed by a lot of people, myself included.
I can't help but shake my head at all of you who got hard-ons for anything with the name Trek on it a few months ago just because Gwin was riding it, and now everyone is so quick to jump on the hate train because he left a team. If you want to talk about loyalty, how about standing behind the rider that you cheered for all year?
Totally not a gay hater, but I've been living with religious psychotics (not saying Gwin is one of them) in the past...
I would think that the individual representation is where they pull in most of their fees (management fee and other sponsorships) and what is more upsetting to them than which team he is riding on. It'll be interesting to get the whole story.
www.23degrees-sports.com/athlete_management.php
Instead of threating his Ex rider with legal action, he should put his money where his mouth is. Pick up a fast unknown and put him on the podium…. Instead of bleating about how TRW have been wronged. Good Luck to AG
www.cyclingnews.com/news/gwin-renews-with-trek-world-racing
It does say "contract renewal" in that article but they must have got it wrong because since being confirmed at Specialized a "letter of intent" is all that has been mentioned AFAIK.
At first, I was disappointed, but now I'm only curioius as to what has really been taking place. Racers want to win races, which Gwin obviously did under Trek. He must have very good reasons for the switch. (Also, this is me hoping that it's not just a tool move on his part.)
keep everybody on their edge, !!!
2. There was no contract so stop being butthurt
3. Drama is for the lycra crowd....
As of yet though, none of us know jack shit. Contract law is complicated and none of us know what contracts were signed, nor the exact wording of those contracts.
If so, Gwin is still under contract.........If not, he traded up to a Demo.
www.weirfoulds.com/letters-of-intent-the-good-and-the-bad
Ref: www.steeleslaw.co.uk/news-item.aspx?id=2724b1bb-17b3-4609-9857-818897cc64b4
Just get out and ride :-)
Aaron Gwin's words:
"Aaron Gwin says, “I did not breach any contract”
I'm writing this public note to hopefully shed a little light on what's actually going on with my move to Specialized.
Reports that I broke my contract with 23 Degrees/Trek World Racing are false. My contract expired. The one-page letter of intent I signed said there would be a “full length contract” with “precise terms” coming in the future. The 16-page contract that showed up in late November was not signed by me because it was not the deal we had made. I have moved on to a team that gave me the contract I wanted, and these are the facts.
The press reports are inaccurate, unfair, and one-sided. Because 23 Degrees has hired lawyers and threatened to sue me, my lawyers have told me not to say anything for now.
While riding for Trek, I lived up to my contract and gave them my 100% effort and full commitment. I intend on doing the same for Specialized.
As for now, I want to let my fans know that my offseason training has been going great. I love my new bikes and I'm more excited to race this year than I ever have been. Big thanks to the Specialized family for such an amazing opportunity and support.
I hope everyone understands that I cannot talk any further about this at this time, but I felt like I needed to clear the air a bit, without getting too much into the legal stuff.
Thanks to all the fans who have stood behind me.
AG"
in aarongwin.hookit.com
CASE CLOSED.
fotos.mtb-news.de/p/1286212
1. Trek and Gwin would not have come out in August with the statements they made if there was not real intent, as Trek would use the Gwin 'contract' to sign up Fox, Shimano etc .Gotta believe Trek on this one.
2. Gwin is meant to be a guy with faith ..too right ...his new god is Mr Green..twat...all that crap he spoused about the Lord...his lord is good ol Abe Lincoln.He's just like the rest of us - but a frickin hypocrit as well ...unless he's going to donate the extra wedge he earns to build a water plant in the 3rd world (no not Canada...England)
3. Specialised are the most hated brand on the market...just one big shrine to greed ...welcome home Aaron'money grabbing, no scruples' Gwin.
4. It would crack me up if Trek signed some guy and whipped the evangelist's ass.
www.twitlonger.com/show/kl8jle
thats a pretty bold statement on treks part.....
TWR sends out an emotional press release that looks like it was written by a 13 year old drama queen and people eat it up and start bad mouthing AG. Did it occur to y'all that's probably what TWR wanted? They reeled y'all in.
Strange though, as his contract hadn't actually been signed, you'd think that if he really was just after money then he would have laid his cards out and said to TWR 'look, spesh will pay me this, what can you offer?'.
However, it's all speculation. I'm sure there's much more to it. what we're seeing is the tip of the iceberg, it's probably a completely different story to those in the know.
Gwin perhaps let Trek's fan down
On that note he never signed a legitimate "contract" but rather a "legally binding letter of intent," whatever the f*ck that means. No need to loose repect for the Legend himself.
add is still there put it down pinkbike !
add is still there
1. Will Gwin still be wearing his Redbull helmet?
2. Will we finally see Saint parts on a demo?
3. Who will fill the gap on TWR?
Pretty big surprise, since Gwin just signed the 3 season contract. . .
Can just see the press now - Trek lose top flight riders in other disciplines due to Lancegate!
"Armpussy" LoL, sounds like a Bond villain.
Just wondering.
May be something's up in TWR that doesnt suit Gwin.
Just said I had the urge, doesn't mean im gonna take it down, sheesh, pinkbike