Irish cycling great Stephen Roche expected to repay €380,000 as appeal partially upheld over cycle tourism business insolvency

Irish cycling great Stephen Roche's appeal over a court ruling he "knowingly and negligently" bankrupted his Mallorca cycling tourism business to fund his "life of luxury" has been partially upheld, with the 64-year-old expected to have to repay around €380,000.

In 2022, Roche was ordered to repay nearly €750,000 in relation to allegations he had failed to pay creditors of his Shamrock Events cycling tourism company, instead using its assets to fund his own lifestyle. At appeal, three judges based in the Mallorcan city of Palma ruled that the insolvency had rightfully been declared "culpable" and not "fortuitous" two years ago, Breakingnews.ie reported.

However, the retired cyclist's lawyers were successful in reducing the amount Roche will have to repay, arguing that nearly €350,000 of the original €733,866 should be excluded as it predated the "asset-stripping".

Roche, who completed the 'triple crown' of Giro d'Italia, Tour de France and World Championships road race in 1987, will only have to repay the amount relating to the two years preceding Shamrock Events entering administration in April 2019 and is expected to have to repay around €380,000. He has also had his seven-year company director ban reduced to two years.

"In this case the insolvency has been declared culpable because of the absence of accounts, the breach of duty in asking for the company to be placed in administration and the asset-stripping that occurred in terms of the unjustified use of company money. We share those arguments," the appeal judges stated, adding that they found no evidence to justify the expenditure of cash taken from the company.

The judge who handed out the original ruling in 2022, Margarita Isabel Poveda Bernal, had told the court funds were spent on "Mr Roche's sumptuous expenditure, on things like golf, apartment rentals, hotels in Switzerland and Hungary, restaurants, clothes stores and fashion houses like Loewe, evidence a life of luxury and spending while his creditors weren't paid."

She said Roche had continued to fund his "life of luxury" while "those who had provided accommodation and meals for his cycling clients and had paid him in advance and borne upfront all the cost associated with their services including personnel, groceries, water and electricity, weren't paid."

Two hotels used to accommodate Roche's clients in Mallorca reported being left nearly €400,000 out of pocket, with the lawyer for one hotel accusing Roche of having "taken advantage of his company for his own private benefit to the detriment of many people".

The appeal judges upheld judge Bernal's ruling that the company's bankruptcy was "culpable rather than fortuitous".

Roche was cleared of fraudulently removing a Volkswagen van owned by his business. In 2019, he blamed his financial struggles on problems relating to the sale of a property investment in France and a failed investment in a luxury car sales business.

At the time he promised to repay creditors and claimed to have "been very upfront with the people I owe money to".

"When I hear I've run away or I'm trying to get away without paying, that's not me. That's not me. Never," Roche said.