BOISE -- The CEO of Boise-based Exergy Development Group says his company won't support professional mens' cycling until the culture of corruption in the sport is "cleaned up."
James Carkulis also said Exergy is financially constrained by various alternative energy projects currently in development or on hold.
Those appear to be two reasons why the company hasn't immediately paid its debts related to past cycling sponsorships in both Idaho and Colorado. Carkulis' comments come on the heels of yet another lawsuit directed at Exergy's presence in the cycling world.
EXERGY SUED IN COLORADO
That's because both Exergy and Carkulis are now being sued in Colorado by Classic Bicycle Racing, owner of Colorado's USA Pro Challenge race. Race organizers say they haven't been paid millions in promised sponsorship money.
John Moore, Classic's general counsel, said Wednesday company owners were forced to make additional capital contributions when Exergy failed to meet its contractual obligations.
Carkulis is accused of fraud, too, for allegedly misrepresenting his ability to pay.
The company faces other financial challenges, including canceled or delayed projects and at least one other lawsuit.
Exergy recently canceled its Idaho developments, surrendered control of a Minnesota wind farm, and was sued for reneging on a Pennsylvania turbine deal.
Amid these woes, the company jettisoned its men's cycling team and canceled the now-defunct Exergy Tour women's race in Idaho.
In response to these recent events, Carkulis gave the following statement:
“As stated in late November, we shall not support the culture of corruption in professional men's cycling until the sport is cleaned up. We join a number of other former men’s bicycling major sponsors in that movement, Additionally, it stands to reason that if we have not yet been paid on our built energy projects, or have projects on hold with millions invested; this constrains our cash flow to pay sporting obligations.”