Ruoff speaks

June 9th, 2008 11:51 am · 16 comments

Ruoff Ending nearly a week of silence, Red Rose Race founder Rich Ruoff has posted a lengthy account of the sudden demise of the local bicycle race promotion company, laying blame at the feet of the controlling partner and offering hope that somehow it can still be revived.

Red Rose Races had begun a phenomenal year, with record attendance and participation at its events nearly every weekend. Riders were coming from across the Mid-Atlantic region and some had registered for the entire season. That ended suddenly a week ago, three days after Ruoff signed an agreement with David Butterworth that gave Butterworth control of the company. Butterworth moved to seize the assets of the company and canceled upcoming races. The first race canceled was the Rapho Road Race, which would have been held Saturday.

Neither Ruoff nor Butterworth returned calls for comment this morning.

According to Ruoff’s account, within two hours of signing the document that gave him a 60 percent stake in the company on May 27, Butterworth opened a bank account and directed the race registration proceeds from the upcoming Millport Road Race to go into the account. Because there was not enough in the previous Red Rose Races account without the registration fees, Ruoff paid about $4,000 in winners’ prizes and workers’ pay at the Millport race on Saturday, May 31, from his personal account.

Then, Ruoff states:

David Butterworth and I met for lunch on Monday June 2 as planned. David Felpel, all around cool guy and avid supporter and volunteer at the races joins us for lunch at David’s suggestion. The conversation starts off cordial and then things go south, fast!By the end of the meeting David had informed me, 1. He is not going to pay me for running the business as President. 2. He also stated he refuses to make payments towards the debt accumulated while growing the business. 3. Then he informs me he will not be paying me any money from Bike Reg. to cover all the checks I wrote two days before for the Millport race.I inform Mr. Butterworth I can’t work for free. I have been working 50-60 hours per week since the beginning of the year. In fact I have been working full time on Red Rose Races for five-plus years. It is my only job and I have a wife and three children with a mortgage to pay. I inform him Red Rose Races.com is also obligated to pay it’s debts and I tell him he also needs to pay me the most recent Bike Reg. money to cover the checks I had written for the Millport Road Race. I remind him I used our personal account. To all of this he is unfazed and doesn’t care. It is not his problem he says.

Within hours, Butterworth had closed registration for upcoming races. By Wednesday morning, he sent an e-mail to all racers who registered for Millport advising them that he was cancelling the remainder of the season.

Ruoff says he is now looking for a job and will soon be putting his house of the market. Yet, he also discusses the many others who are affected by Butterworth’s action.

Some regular racers had pre-registered for upcoming races, or for the whole season. With little hard assets, they will be unlikely to see their money, he said. As possibly the largest race promoter in the country, the demise of Red Rose Races is decimating cycling in Lancaster County and on the East Coast. It is particularly damaging for junior racing, as Red Rose Races was the largest promoter of Lance Armstrong Junior Olympics Races in the country. Deaf racers were planning to use the RRR’s Dutch Country Stage Race, previously scheduled next month, to select riders for the Deaf Olympics in Taiwan in 2009. And 15 of the top Australian junior racers were planning to travel to compete in two Red Rose Races events this summer. The turn of events will also damage the Lancaster County economy. He estimates the races bring more than $2 million annually in related spending and are a community asset.

Ruoff is asking cycling race supports to contact Butterworth and urge him to reconsider. Possibly, a few races this year could be revived - but Butterworth must relinquish control, he wrote.

Ruoff is willing to be personally responsible for the company’s debt and said he will be willing to work “to make things right.”

Ruoff retains control of the RedRoseRace.com domain name. If the races can be revived, it will be posted there, he wrote. And he can still be reached at info@redroseraces.com.

Butterworth can be reached at 717-468-8080 or emailed at david@majorleaguecycling.com

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.

16 comments Tags: tourism · business · Lancaster · season · cycling · races · sports

There are currently 16 comments on this blog post
View Topic | Comment on this blog

davidb
6/9/08
2:21 PM

Bernie:

Certainly part of what Rich has written is true, but other parts are twisted. In 2006 when Pro-Am Cycling leased some events to Rich things went sour because of very similar (bad) business practices to what Rich employed most recently. He siphoned off cash from registration fees paid for future events to pay himself and past debts in the near-term with the hope of recovering by season-end with what came in from Christiana (last big event of the season); it never worked out and he then scrambled to borrow more money from family and friends, which would let him muddle through. I was greatly concerned about this being the case here again in the spring and asked him to be careful. He wouldn't share much information with me. Rich was fully in charge and didn't want me meddling in his business. However, the signs were obvious. I was one of his larger creditors with the "sale" of Pro-Am Cycling's events, but only became a majority owner upon his default of note payments due each month from his purchase. The payments were high because the financing Rich promised to secure all dried up and I carried the entire loan he needed; there were only 2 payments made, but alot of other money was gone and Rich's sources were tapped out, he had reached the end of the road. In lieu of the note payments I agreed to cancel the loan and become a majority stockholder on May 28 along with becoming treasurer to help him sort things out. We worked together to run Millport on Saturday and Pro-Am Cycling was planning to lend him enough money to cover expenses until the registration fees came in the following week from BikeReg. Rich, Dave Felpel, and I met on Monday when I planned to give him a check. The conversation turned to his business practices and the future of the races; I had prepared a list of liabilities that were easily discerned from public resources and expected that things were probably far worse than I knew. His "plan" was that I should invest $20,000 into RRR to cover not only a portion of these liabilities, but pay him an even higher salary than he'd already been taking to run the events. I was willing to advance him the money needed for Millport, but not $20,000. Upon hearing that Rich resigned. Now at that point things changed and perhaps that's what people need to understand because it wasn't any longer just about Millport, but it was now a question of everyone owed money getting thrown together into the creditor pool. Riders who registered and paid for the full season and anyone pre-registered for a future event were equally entitled to getting something, not just the folks from Millport. There was no chance of me running the series as it was envisioned, both from a time/labor standpoint and due to the fact that with 20% of the income siphoned off already, each event was guaranteed to lose money, which would only make the problems bigger for RRR. So I canceled the events and hope to resurrect about half of them under a more manageable business plan. Now that leaves the creditors of RRR to deal with and hopefully I can retreive some equipment from Rich to sell and pay off these folks soon. Other older debts of Rich's to family and friends and his bank are not going to be satisfied with the new corporation, Red Rose Races.com, Inc. assets. Unfortunately, I've recently learned the largest of these assets, the custom made finish line/ equipment trailer ($15,000) was fraudulently contributed to the new corporation for equity/stock ownership when in fact it was not Rich's to sell/invest, but instead already pledged to his bank against personal borrowings. (If this previous statement is at all in error then Rich should turn over the trailer as I have a signed list of assets contributed to the corporation). That leaves only smaller-ticket items like fencing and a public address system to sell and it may not be enough to make full restitution to riders, officials, service providers, and any others owned money. I'm very sorry for everyone that has been victimized by this situation.

Sincerely,

David

FreeFloydLandis
6/9/08
2:23 PM

Absolutely astounding.

2fat2ride
6/9/08
6:36 PM

QUOTE(davidb @ Jun 9 2008, 02:21 PM) [snapback]399114[/snapback]

That leaves only smaller-ticket items like fencing and a public address system to sell and it may not be enough to make full restitution to riders, officials, service providers, and any others owned money.

That's not true. Red Rose Races.com, Inc. still apparently owns the races, right? After all, they had value when you sold them to Rich, right? And they are still owned by RRR, because you simply cancelled the debt, right? So, RRR, does indeed have something of value, that, if sold, would contribute to the payment of these debts. You could argue that they are the means of production, but you you've already lost that argument by not running them.

So, if the RACES have value (what's left of it after you screwed your customers over), then I suggest you start looking for some buyers. Because you owe a lot of riders some bucks.

Unless, of course, you already have a buyer in mind and this whole thing is just a bunch of BS, which is what it smells like. Either way, the checks better be in the mail, don't make us demand the refund. About 50 season-paid riders, each paid about $400...that's $20,000...and the season was only a third of the way done?!?!?!...you're on crack if you think everyone's just gonna let that slide with an apology.

Just pay everyone and stay away.

Maybe you can start a bowling league.

No offense to any bowlers out there.

mike regan
6/9/08
8:34 PM

Please Mr. Butterworth just go away. You have a proven track record of weaseling and scamming within the cycling community.

We NO longer want you.

Does your arrogance make you blind? can't you see it? When you, Major League cycling/Pro-Am events promotes a race. NOBODY shows up. Everybody has caught on to your smoke and mirrors act. Meanwhile,, Rich Rouff promotes your same events, he draws hundreds from all over the East Coast.The truth lies in the numbers you live bye, and you scam people bye.

Take a long hike and don't come back

QUOTE(2fat2ride @ Jun 9 2008, 06:36 PM) [snapback]399258[/snapback]

Christopher
6/9/08
8:58 PM

Is this the same Rich Ruoff that once owned the Chameleon Club?

Lancaster
6/9/08
9:13 PM

QUOTE(Christopher @ Jun 9 2008, 08:58 PM) [snapback]399280[/snapback]

Is this the same Rich Ruoff that once owned the Chameleon Club?

Yep, one and the same

davidb
6/9/08
9:26 PM

2fat2ride & Mike Regan:

Yes, some of the events are owned by Red Rose Races.com, Inc. and I am currently talking with a local buyer. If these can be sold then, depending on the price, that could enable RRR to make restitution on the money owed. And that's in addition to any hard assets sold. I'm not following you on this being my doing when I've clearly told you I had no involvement since Rich "purchased" the events in September 2007. Maybe you can also explain the bit about weaseling and scamming. In 2003 when I organized my first event there was a problem with prizes being cut from $1,000 to $675 in a race; this was according to USCF rules, but apparently new to some riders. Unfortunately the announcer made a statement about the $1,000 prize list while I was making a last minute drive around the course to check on traffic marshaling. I lost more than one thousand dollars on that event. Other than that incident I've heard many nice comments on the race. Maybe it's time for you to let it go, if in fact you were even affected by the mistake. Something else I've done is to try and run this like a business, which has meant raising prices on entry fees and limiting prize money; well that's the reality of things it's expensive to run these events and if you look around everyone else has done the same. But this is America and you're free to go race somewhere else if you don't like it. Other than that it seems like you're the one full of arrogance and blind to the great things we've (Rich and I both) developed here in Lancaster County to benefit the cycling community. Maybe you could tell me what contribution you've made? If you truly have a question or complaint about something I may or may not have done that you disagree with, I'd be glad to discuss it with you. Otherwise you're just ranting and raving like an uninformed idiot. In 5 years and more than 30 events you'd think I might have done something right.

Sincerely,

David

2fat2ride
6/9/08
10:24 PM

QUOTE(davidb @ Jun 9 2008, 09:26 PM) [snapback]399289[/snapback]

Yes, some of the events are owned by Red Rose Races.com, Inc. and I am currently talking with a local buyer. If these can be sold then, depending on the price, that could enable RRR to make restitution on the money owed. And that's in addition to any hard assets sold. I'm not following you on this being my doing when I've clearly told you I had no involvement since Rich "purchased" the events in September 2007.

Because, Rich was working hard to fulfill his customers' orders. In a couple of hours you determined that you didn't have enough time or money to even try. Smells bogus to me. The value of those races™ rested in their continuity and established presence in their respective communities. If the races were your capital asset, why would you toss that value away? Unless you already had another buyer in mind and had no intention of delivering.

QUOTE

Something else I've done is to try and run this like a business, which has meant raising prices on entry fees and limiting prize money; well that's the reality of things it's expensive to run these events and if you look around everyone else has done the same.

What kind of business doesn't deliver their product? Why would you agree to take on 60% of RRR, Inc. and cancel Rich's debts on the races without being fully aware of the amount of new investment you would have to make to keep the series running? Is that good business? Smells like monkey business ™.

QUOTE

Maybe you could tell me what contribution you've made?

Look around at the number of teams in this area. Never saw so many different kits (most of them red, white, and black, but what can you do) with lots of sponsors. Lots of LOCAL sponsors. We've continually increased the number of teams and the numbers of riders. The more sponsors, the more teams, the more interest, the more community support, the more people paying entry fees. If you want to treat this like a business than you better start rethinking your attitude. The riders are your customers, the teams are your customers, and our sponsors are your customers. And you just gave them all the shaft ™ © ®.

QUOTE

Otherwise you're just ranting and raving like an uninformed idiot.

Nope, I am ranting like someone who just got robbed. Like someone who just waved good-bye to about 250 bucks. What part of that don't you get? Way to treat your customers.

roadrash
6/10/08
9:58 AM

Butterball, YOU SUCK, PLEASE LEAVE, nobody wants you around. You are ruining an otherwise thriving sport in Lancater Co.

FedUpRacer
6/10/08
10:03 AM

Mr. Butterworth:
Even if Jerry Casale, Dave Chauner, Jack Simes, Andy Hampsten and Davis Phinney "buy" your races, no one will come.

mike regan
6/10/08
10:33 AM

Butterworth is a snake. I can't believe he calls himself a born again christian.

He screwed some young kids over in Germany this past Winter"

"This competition, though, has manifested itself in different ways over the past weeks and Dortmund is the best example. There are three American teams in Europe trying to get start positions for the UIV Cup. First are the US Nations Team, Guy East and Austin Carroll, then David Butterworth’s team of Brian Crobsy and Adrian Hegyvary and then Jackie and myself. With riders applying for start positions from all over the world there is no way that three American teams with be entered into the event. A Danish team could not make the start in Dortmund so, contrary to my last sentence, the third American was granted the start position that opened up. Now this is where things got interesting. Guy and Austin rode a solid race but, as the National Team, they should have crushed Jackie and myself. On the contrary, though, Jackie and I solidly beat them the first two nights and finished tied in the overall. Luckily USA Cycling was able to save face because of our mechanical problems on the last night (Yes, Guy was a teammate on Sakonnet). Otherwise, the outsiders would have been the first American team each night as well as the best place team in the overall. And, once again, this is extremely important when vying for start positions.

While USA Cycling and ourselves were duking it out to be the top American team, David Butterworth was behind the scenes spinning his own little web. His riders were getting their heads kicked in each night. They were missing exchanges and getting lapped again and again every race. Rather than trying to get his riders back on track and salvage whatever was left, Butterworth, unbeknownst to his riders, turned his back on them. First, a German fan came and spoke to Guy about living in Indianapolis (Guy’s hometown) and what a good guy their coach was. Their coach, Clay Worthington, had not been the guy the German fan was talking to but David Butterworth who was posing as the USA Cycling coach. The next night Butterworth tried the same tactics with us. Jackie and I were riding well so he started to tell people that we were “his riders.” When I heard all this I couldn’t believe it. A real weasel. And now the icing on the cake – Munich started last night and Jackie and I had a start position for the event. Right now, though, I am sitting at the breakfast table in Gent writing this entry. Why? Butterworth told the organizers at Munich that he was bringing the USA Federation team for the UIV Cup. When, in actuality, he is bringing the same guys that were embarrassing themselves in Dortmund. Needless to say, we are both furious. Jackie and I still have a bunch of big races coming up though. We race Sunday in Gent then next Tuesday and Friday in Amsterdam but, really, what a snake in the grass. I’m trying to not let it get to me though. Things come full circle and, when the time is right, he’ll get what’s coming to him."

NRiders
6/10/08
11:21 AM

Save Cycling Boycott Butterworth

Bigbruss
6/10/08
6:03 PM

I am sorry to learn about the unfortunate ongoings with competitive cycling here in the mid-state. A real tough pill to swallow for those looking to develop their skills against seasoned athletes. I am not going to throw any additional grief into the mix as there seems to be enough already. I will however provide a small glimmer of hope to those looking to salvage a season. The Tour de Millersburg is running full speed ahead and if you are looking for another option that may stop the burning then this is your race. Bob Roll will again be back this year serving as the MC. The courses are the same, TOUGH! Those that were there last year know what I mean! The goal out of the gate was to offer a stage race like no other. A professional cycling experience on every level. We took a bit of a bath last year for our first year but the comments we received validate that we are on the path to becoming the "next big thing"!! All of our information can be found at www.tourdemillersburg.com. We are still contemplating the categories so bikereg.com is still inactive. If you want to travel a little further north and visit a scenic, challenging event with full community support then look no further. Fully equipped with rolling enclosure, a legitimate feed zone (with handout crew), adopt a racer lodging program, killer courses and did I mention Bob Roll again this year, then come check us out. We would love to do our part in keeping the race calendar in check. I hope to see you all there!!! We have already started the mass mailer for this thing so you racers that were there last year will be receiving the flyer soon if not already!!

chainsuck
6/11/08
7:23 AM

Mr Butterworth -

All stories aside... the fact remains that you took over Red Rose Races and immediately shut it down, as well as forced Rich out. Popular opinion is overwhelmingly that you killed racing in Lancaster this year. In fact, with all the people I have talked to, no one backs your side of the story... and certainly the only one defending you on the web is in fact... you. What you need to do is work this out with Rich... ie: relinquish your shares in the races. No one wants you promoting races in Lancaster.

Artie See
6/11/08
10:09 PM

I'm very glad there are no more bicycle races in Lancaster City. Each one cost City taxpayers tens of thousands of dollars for overtime and services, and brought very little into the city in return (except for traffic jams). Rick Gray did the right thing when he was able to move the races to a Sunday, which was much less of a burden on Lancaster City residents. Rick Gray again did the right thing by refusing to bow to the extortion race promoters were demanding.

I know the amateur races were held before the professional races, and were not associated with their financial demands. But holding a bicycle race in the city is a far more costly proposition than racing on country roads.

BTW, Ed Ruoff ran for mayor of Lancaster against Charlie Smithgall, and lost. Smithgall returned the favor by raiding the Chameleon Club, which Ruoff owned, and personally supervising the Lancaster City Police as they picked the club apart. Of course, nothing was ever found to bring any kind of charges against Ruoff, it was all nothing more than Smithgall utilizing his standard operating procedures of bullying and intimidation.

mike regan
6/12/08
10:24 AM

Hey Artie,

Try to keep up, this has nothing to do with the City. Red Rose Races has never promoted a race within City limits.

And it was Rich Rouff who owned the Club.

It's your kind of thinking that will continue Lancaster City's decline. The Pro Races were the only reason many people even went to downtown. It was a good thing which brought many people into the city. Isn't that what you want?

QUOTE(Artie See @ Jun 11 2008, 10:09 PM) [snapback]400200[/snapback]

View Topic | Comment on this blog

Potholes and Road Apples

Cycling Life in Lancaster County

Ruoff speaks

June 9th, 2008 11:51 am · 16 comments