The ongoing takeover talks between Manuela Fundación and Mitchelton-Scott are still in turmoil as Stefano Garzelli, who was in charge of negotiations on behalf of the former, told Italian news site Cicloweb (opens in new tab) that "the company transfer agreement was signed, it is valid and we will proceed," he said, and there is still confusion.

Mitchelton Scott has remained silent since declaring that he and owner Jerry Ryan had broken off discussions over a sponsorship deal, and Cycling News understands that no formal agreement was signed.

Sources close to the team told Cycling News that the only agreement that was signed was called "Heads of Terms," which covers all aspects of ownership and the important issue of the team's current World Tour license, and that a longer contract was intended to pave the way for a longer contract.

The Heads of Terms are not necessarily binding on all countries, but Manuela Fundacion could seek damages for expenses already incurred, such as logo design, kits, and consultant fees. Any legal challenge from Manuela Fundacion could probably focus on the wording of the letter of conditions.

Mitchelton Scott announced last week that Manuela Fundacion and the foundation's president, Francisco Huertas, would be the team's new main sponsors for the remainder of the 2020 season. A few days later, however, GreenEdge Cycling, the holding company that operates Mitchelton Scott, announced that the deal was off the table.

Representatives of Manuela Fundacion claimed that they were not merely sponsoring the team, but also taking ownership of the team, causing confusion over the terms of the deal; GreenEdge owner Jerry Ryan claimed that he would remain the owner of the team and that the deal was not completed, but representatives of a Spanish NGO shot back that the team's license was theirs.

It soon became clear that all was not well between the two sides, before Ryan announced that the team would remain Mitchelton Scott for the entire 2020 season and that riders and staff would be paid in full when racing resumes on August 1. Jerry Ryan's words yesterday were a pouring of cold water and, if we are to be believed, totally unwarranted. And as far as we are concerned, we will move forward," Garzelli told Cicloweb.

According to Cycling News, Manuela Fundacion was informed of Ryan's withdrawal from the negotiations by a letter sent by his lawyer on Thursday, and a press release confirming the news was sent within an hour of Ryan's decision. However, Garzelli claims that the situation was clear from the shots and that Manuela Fundacion had control of the team from the moment she signed the papers on June 5.

Garzelli said he was contacted directly by Huertas to find a leading team that Manuela Fundacion would sponsor in 2021. He said he was contacted by Alvaro Crespi and Shayne Banan, who run Mitchelton Scott, through Banan's management company in Switzerland. The plan was to sell the management company to Huertas and have Manuela Fundacion take over the team, and the deal was signed on June 5.

"Again, the idea was that they would take over the license in 2021. But they immediately restarted and asked us if we were interested in possibly taking over the sponsorship in 2020," claimed Garzelli.

"We confronted Huertas and accepted the idea of a few months ahead of their entry into top cycling. We had a detailed meeting with the other party (electronically) and reached an agreement in less than a month. Then, on June 5, a contract was signed, valid in all respects, between the Huertas Group and New Global Cycling Services, the Switzerland-based company of Shayne Bannan, which manages the team.

"According to the terms and conditions, sponsorship will begin with the first race after the Covid 19 vacation and will continue throughout 2020. During these months, all runners and staff will be paid. Thus, after January 1, 2021, ownership of the company will transfer directly to Francisco Huertas and the license will be Spanish. 2]

"There is a clause: Shayne Bannan will remain on staff as General Manager until 2025, and until the same date Alvaro Crespi (Finance Manager), Matthew White (Sports Director) and Kevin Tabotta (Performance Director) will They are expected to continue in their roles."

"Additionally, the full staff of cyclists and employees for 2021 will be confirmed.

Garzelli claims that even the team's management was surprised by Ryan's announcement that the contract would be terminated and the team would remain as Mitchelton Scott.

"Even on June 12 he had issued a statement thanking the Manuela Foundation. Now the reverse has happened," Garzelli said.

"I assure you that even the current management of the team, from Banan to Crespi, was shocked, to say the least, before this news. We had already scheduled a series of technical meetings and were already talking about 2021 and about this season. We booked the hotel, set the dates, designed the shirts, presented them, and prepared to 'strip' [the assets] and cover them with new colors." Finally, this cold shower fell on us, them, everyone.

Garzelli said he could not speculate as to why Ryan pulled the plug on the deal, but could confirm that the terms of the deal were professionally handled by Manuela Fundacion.

"There remains a signed and valid contract and we have all the qualifications to proceed as we intend," Garzelli said.

"The team is 100% Banan, Banan has decided to sell to Huertas, the contract is valid, and we will continue on the path we have followed. It is unclear how this episode will end. Mitchelton Scott has remained tight-lipped throughout most of this process. The initial press release regarding Manuela Fundacion's sponsorship was brief and blunt, and it is telling that none of the staff or riders were available for comment immediately after the press release was issued.

Usually, good news like the team's survival is followed by a flurry of interviews, but this lack of movement suggests that the final terms for Manuela Fundacion and Mitchelton were still some way off.

A source told Cycling News that the press release announcing Manuela Fundacion as sponsor was issued in good faith at the request of Manuela Fundacion, and that the team's players and staff were also notified of the June 5 head-of-term ( The team's players and staff were informed of the team's long-term security a few days after the contracts were signed. The players' agents also approached Mitchelton Management over contract extensions for several players that would not have been possible without the 2021 sponsorship, but good will quickly ran out as talks and media comments began to emerge

: "People show their hand and that scares people. It can also frighten them.

The same source added that Ryan's U-turn was due to several factors, most notably his own reputation and his thoughts on the legacy of the team he had funded since its creation in 2012. Discussions had been held between the two sides regarding the long-term vision of the team and the handover of power, but as the days went by, it became clear that the desire within Ryan's camp to move forward with discussions was rapidly cooling.

"He is protecting his legacy, and that was the deciding factor," the source concluded.

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