Swimsuit Maker Smells Something Fishy at Pool

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Michael Phelps’ success at last year’s Beijing Olympics came with the help of better swimsuit technology. Phelps wore the Speedo Lzr Racer while winning eight gold medals. He wasn’t alone. Swimmers wearing the suit set a majority of the 108 world record times set in 2008.

While no one’s contesting the legitimacy of the records, the suit is at the center of litigation by a Speedo competitor, Tyr Sports Inc. The Orange County company alleges unfair business practices by Warnaco Swimwear Inc., parent company of downtown L.A.-based Speedo USA.

A federal judge in Santa Ana last week denied a Warnaco motion for dismissal, meaning the suit will now proceed toward a March 2010 trial date. The judge found evidence nine of the 10 complaints could proceed to trial.

The lawsuit alleges collusion between Warnaco, and names USA Swimming, the governing body of the Olympic sport, U.S. national team director Mark Schubert and swimmer Erik Vendt. Tyr filed an antitrust claim that the parties have colluded to give Speedo unfair access to USA Swimming members.

Tyr estimates it has lost more than $500,000 because of Warnaco’s alleged monopoly.

In antitrust cases, the law states that the penalty is triple damages plus attorneys fees; Warnaco could face a judgment of at least $1.5 million.

But the goal of Tyr’s litigation is to increase competition, the lawsuit states, not just recover damages and penalties.

Representatives of Speedo declined to comment on the case.

Speedo has dominated the $200 million competitive swimwear market, with Tyr in second place. Apparel manufacturer Nike Corp. the No. 3 seller in the elite swimsuit category, pulled out of the market completely last year.


Modern Breeders’

When the Breeders’ Cup World Championships returns to Santa Anita in November, the purses will be as big as last year, but ticket prices will be slashed to build a larger audience for the special event.

“We heard the fans loud and clear,” said Peter Land, chief marketing officer. “We want to make sure that we have people in the facility that support racing year round.”

Tickets for the event, Nov. 6 and 7, went on sale last week and prices have been reduced by up to 80 percent. Grandstand tickets have been reduced from $200 to $40 on Friday and $55 on Saturday. Prices for general admission tickets have been cut in half, from $20 to $10.

Spectators can purchase tickets for one day only; in the past, tickets were sold as a two-day package.

Also, the ticket ordering process has been modernized: The organization has built an online system.

“We’ve done a lot to make the Breeders’ Cup more fan friendly and approachable,” Land said.

Race organizers also announced that the V Foundation for Cancer Research will be the event’s primary non-profit beneficiary. The goal is to raise at least $100,000 for the organization, which was founded by ESPN and Jim Valvano in 1993. Valvano, a college basketball coach, died of cancer that year.


Coach’s Corner

John Wooden has joined the dissent over plans for a $185 million renovation of UCLA’s Pauley Pavilion. The legendary coach is surprised by the amount of money committed toward updating the arena.

“Times have changed. Pauley Pavilion originally cost $5 to $6 million,” Wooden said. “Everything has gone up, but not that much.”

Wooden thinks that the arena could use small changes such as improved concession and restroom facilities. He would also add more handrails in the aisles for safety. But $185 million? Way too much.

“We must never forget that school is for education, not football, basketball or baseball,” said Wooden, who coached the men’s basketball team to 10 championships. “Sports are just the sideline activities for student participants and spectators.”


Souvenir Bonanza

As the Los Angeles Lakers geared up for their playoff run, AEG executives were already planning their marketing strategy for the T-shirts, hats and other postseason merchandise that accounts for thousands of dollars in sales at the Staples Center team store.

Company officials designed the merchandise in March and placed orders with manufacturers immediately after the Lakers’ conference finals victory and the Orlando Magic won the Eastern Conference.

“We sat down and came up with a plan for what to sell,” said Sean Ryan, AEG vice president of merchandising. “We look for something new and fresh.”

This year, the team’s home court advantage lead to higher sales. If the Finals match against the Magic goes seven games, the Lakers would host four. Last year, the Boston Celtics had home court advantage and the Lakers only hosted three games as the road team in the two-three-two format.


Staff reporter David Nusbaum can be reached at [email protected] or at (323) 549-5225, ext. 236.

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