Professional Cycling House of Cards?

I love cycling.  I love riding my road bike and I love watching the pros, especially on the Grand Tours (France, Italy, Spain).  I’ve seen every moment of every Tour de France since 2002, and Lance Armstrong for me has been a true inspiration, an almost freak of nature in his ability to suffer more than others and dominate his sport – and doing so before and after recovering from near-fatal testicular cancer.  Truly amazing.

So, I couldn’t help being completely mesmerized, despite writhing in pain, at watching Tyler Hamilton’s interview on 60 Minutes this past Sunday.  Tyler, in the most believable exposition of the dirty side of pro cycling yet, proceeded to explain how he and many of his teammates on the 1999, 2000 and 2001 USPS team, including Lance Armstrong, used a systematic performance enhancing drug (PED) doping system including injections of EPO and blood transfusions in training and during major races.  This interview occurred after Tyler testified, under subpoena, for the Grand Jury investigation into the use of performance enhancing drugs where Lance Armstrong is the focus of the investigation.

There have been others who have told stories of systematic doping on Lance’s teams, including Floyd Landis, a teammate of both Lance and Tyler on the USPS team.  Floyd’s allegations for me seemed at the time to be easier to dismiss, in part I think because he raised significant sums of money from thousands of people for his legal defense, denying his guilt for nearly four years and when he finally did admit to doping, then allegedly started sending letters and emails to Lance’s camp and cycling officials that “felt” like a desperate attempt to take others down with him.  And that’s exactly how Lance and his legal team dealt with these and other accusations – these guys are cheats and liars and are simply not credible, we have testing and the facts on our side.

Yes, Tyler is also an admitted cheat in pro cycling having served an 8-year ban from the sport due to doping.  And he’s denied using PEDs and implicating others, keeping his mouth shut until the moment he was forced by subpoena to testify under oath.  And, he’s writing a book so the 60 Minutes piece certainly serves his interest for generating book awareness.

Despite these facts, what makes his situation different and far more believable for me?  A perfect storm of 3 things in my mind:

  1. Timing and Momentum.  With a Grand Jury investigation going in the background, it brings focus, attention and credibility to the PED problem in professional cycling, especially with Jeff Novitzky, the investigator that uncovered the BALCO scandal that ultimately exposed Marion Jones and Barry Bonds.  And its not just Lance under investigation, its entire teams, coaches and the governing body of professional cycling itself (UCI)
  2. Terms of Tyler’s Deposition.  Tyler’s deal with investigators during his deposition – immunity from prosecution, but if he is found lying about anything related to his testimony, he goes to prison.  It’s important to understand that Tyler didn’t just do the 60 Minutes interview, but he also told the same story under oath and under the threat of going to prison for lying.
  3. Hincapie’s Nail in the Coffin.  Simultaneous to Tyler’s Grand Jury testimony, it was reported by CBS News that George Hincapie, Lance’s closest teammate for every one of his 7 Tour de France wins and who Lance has described as “like a brother to me”, told Federal authorities under oath that both he and Lance used PEDs during their time together.  Here’s a guy who’s never been implicated in PED scandal, has never been tested positive for PEDs and has absolutely no reason to admit to such a thing – except that he was under oath in a federal investigation.  Just like Tyler.

It’s easy to come to Lance’s rescue given he’s the most tested athlete in history.  Over 20 years and 500 tests with not one positive test, although Tyler alleges Lance did test positive in 2001 and the governing body in cycling (UCI) “made it go away”.  It’s easy to come to Lance’s rescue, that is, until you hear Tyler talk about the ease with which testing for PEDs can be beaten.  According to Tyler, there’s a manageable difference between doping enough for performance enhancement and doping too much for detection.

So what does all of this mean for pro cycling and for Lance?  For cycling, I believe it can only bring about positive results, albeit painful in the short term, provided the investigation is thorough and the truth is rooted out sufficiently to result in real reform within the sport.  The success of the code of silence over so many years in cycling is astonishing.  Perhaps exposing the truth and reform also sends a vivid message to our children about right, wrong and consequences about illegal doping in sports.

For Lance, I fear a far worse outcome.  Lance has done not only miraculous things for cycling, but as a philanthropist he has inspired millions worldwide – both through his personal story and by his ability to leverage his brand to raise incredible sums of money for cancer research.  If his story is a lie and his brand is predicated on cheating his way to the top, won’t that have repercussions among those affected by him now if not certainly in the future?

I also fear that despite how strong the prosecution’s case, that Lance will forever deny any wrongdoing.  There is simply too much at stake for him to admit guilt.  And this will result in a long and difficult-to-watch fall from grace the likes my generation has never seen, certainly in sports.  I would argue that if its true, its in Lance’s interest to get in front of it now, take a massive painful hit and at least attempt to put it in the rear view mirror.  A slow, defiant march to the bottom, potentially ending in prison for obstruction and fraud, eliminates any hope of rear view mirror.

I still hope the investigation turns up facts and data that proves innocence, as much innocence as possible.  But I believe in my gut, based on the facts revealed to date, that we are way beyond the fantasy of innocence.

I hope I’m wrong.

The Next Government Buster?

I’ve read a few really interesting stories over the past few days about Bitcoin, a relatively new, decentralized peer-to-peer (P2P) payment ecosystem that avoids any sort of centralized banking oversight and is anonymous between the transacting parties.  Think about these two attributes for a second.  No centralized government oversight means no regulation, no taxation, no monitoring of how and where currency is being spent, no traceability, no monetary policy.  And anonymous between the parties, in combination with no oversight, means you can buy and sell things – any and all things – without anyone knowing what is bought or sold.  While there are other forms of P2P payment systems such as PayPal in operation, none of them meet these two criteria.  How Bitcoin works is fascinating.

Jason Calacanis, arguably one of the most influential web technology voices and certainly one of the most outspoken about new and emerging web technologies, posted a story about Bitcoin yesterday entitled Bitcoin P2P Currency:  The Most Dangerous Project We’ve Ever Seen.  The gist of his message is that this could be one of the most disruptive web technologies since the creation of the Internet itself due to the potential dis-intermediation of governments and the complete decentralization of a globally centralized system (monetary oversight, central banking).

There was an insightful response to Jason’s post by Robert Tercek, a serial innovator in digital media, entitled Is Bitcoin the Wikileaks of Monetary Policy? that is a must-read.  Robert describes how the Internet has decentralized numerous industries, particularly ones where the incumbents were able to previously control their positions with regulation or by proprietary access to data or licensing.  He sums it up with “Bitcoin is to central banking as Gnutella is to music publishing, as BitTorrent is to motion pictures and as Wikileaks is to government secrets.”

Jason and Robert contend the only way this type of innovation is stifled is by governments making it illegal AND actively prosecuting individuals.  And even this type of threat at best forces a migration of innovation into even more diffusion and decentralization until local government incentives are aligned with the innovation.  In the end, centralization and oversight die.  Wikileaks and Napster started revolutions that spawned even more decentralized and ultimately more effective web innovation.

I wonder, is this capitalism at work?  Can we assume that the intersection of innovation and economics will always result in the most efficient, effective equilibrium?  Or are there areas of centralization, policy and oversight that are beneficial to society as a whole?

This will be one technology to watch.

Your Phone Will Control Your Home

We knew it was coming, but Google finally today announced Android@Home, Google’s new open framework to allow your Android mobile device to (eventually) control everything in your home – music, lighting, security, cameras, doors, appliances, you name it.  I think the “home” is a next big frontier of unexplored opportunity and is going to create an entire new ecosystem of startups and companies focusing on the intersection of mobile and home.  While Microsoft (Kinect), IBM and HP have been in this home sensor space for years, Google has a history of changing the game and bringing new technologies to the masses through their open development platforms.  Google Chrome OS, with 160M users and Android, with exponential growth and now the leading mobile operating system in the world, are two examples of Google’s ability to create explosive products and platforms.

Over just the past decade, we’ve seen a migration in opportunity from initially web only, then to mobile smartphones, then to mobile connectedness to others through applications and social media, which by the way is not nearly fully exploited yet.  It seems with Google’s announcement today, at least one next evolution of connected technology is our mobile device as a true connector to everything in our lives – people, home, car and every activity that fills our day.

Consistent with other Google applications, Android@Home is an open platform that encourages any developer to create applications that operate on the platform.  Google with their worldwide influence, has a unique ability to define and lead game changing technologies by first defining the platform standard, then opening it up for developers everywhere to create applications, increasing consumer adoption and ultimately leading to exponential scale.  Google’s vision in this case is to create a “smart home” by having millions of developers building applications that over time will completely automate your home through your mobile device.  Pretty cool George Jetson stuff that he might have developed at Spacely’s Sprockets!

I’m excited to see what will happen over the next 12 months in the home automation space now that Google has officially entered the market.

Now, if only Google could create a platform for increasing home values to 2005 levels, I’d really be impressed 🙂

Tragic Day in Cycling

Today was a tragic day for cyclists worldwide.  A professional cyclist lost his life during Stage 3 of the Giro d’Italia, a 3-week stage race that is Italy’s equivalent of the Tour de France.  Wouter Weylandt, a 26-year old Belgium pro racer who ironically won Stage 3 of this race just one year ago, crashed on a downhill descent and died on the scene from head and facial injuries.  It’s the first death in a major pro tour stage since 1995 and even longer for the Giro since 1986.  As much cycling as I do, this story makes me sick to my stomach.  But what makes it unbearable for me is that Wouter’s girlfriend is 5-months pregnant with their first child.  The similarities between us are eerie and unavoidable to consider.

This is a sport I love.  My passion.  And it’s dangerous.  While I’m not (always) hurtling myself down mountains going 60 mph like these pros do in a race situation, cycling even for us amateurs involves mountainous descents at high speeds and even worse, traffic on busy roads.  I read this story about Wouter this morning after having spent about 7 hours on my bike this weekend and having climbed and descended nearly 10,000 ft.  And I’ve got a child on the way too.  Scary stuff that forces reflection, particularly with a baby on the way and the gravity of that responsibility for the rest of my life.

Compounding my personal struggle with personal risk taking, my father died in a kayaking accident when I was 9-years old.  Another dangerous sport, but one that my father loved.  He was and avid kayaker, known for his responsible and thoughtful risk appetite, he simply did not take undue risks even though his sport is inherently dangerous.  His death was the result of a freak accident.  And I respect his choice to pursue his passion despite the lack of his presence in my life.

So here’s the deal.  I’m not going to stop living my life and doing the things I love the most.  And I want to teach my son that same philosophy – to unwaveringly, but responsibly and thoughtfully pursue his passions.  I don’t live a particularly dangerous or adrenaline-junkie lifestyle.  Cycling is probably the most dangerous thing I do and its not clear to me that driving your car on LA freeways is any safer.  My point being there are risks all around us, however remote the probabilities may be.

Is that a selfish view?  I don’t think so.  There are endless reasons not do do something, especially if that something involves a perceived or even a real danger.  It’s the responsible and thoughtful pursuit of happiness that I try to use as my own personal barometer.

But here’s the rub – what constitutes “responsible and thoughtful” behavior in the pursuit of our passions, dreams and interests may be completely different for you than for me.

What do you think?  How much risk is too much risk in the pursuit of personal happiness?

Engineer = Rock Star

It’s good to be a developer in this job market.  Really good.  And not just in Silicon Valley, although SV really is the center of the universe for mobile and web technology.

At TrueCar, we’ve been really aggressive with hiring for both our LA and SF offices, including offering relocation packages from anywhere in the U.S., even for junior engineers.  We’re selling our story hard.  Here’s what we’ve been up against over the past year:

  • Google recently gave every employee across-the-board 10% raises – up from already strong compensation.
  • Large Silicon Valley companies like Google and Facebook are actually acquiring small startups, in some cases only a few months old, to gain access to the development team.
  • Poaching talent from competitors has become a fine art, escalating signing bonuses to extreme amounts for top talent.  As incredulous as a $500K retention bonus sounds, the economics of that decision for a company like Google makes perfect sense based on the shareholder value that lead engineer will create.  Oh, and 15% of Facebook’s employees have previously worked for Google.
  • In Boulder, a consortium of companies are pooling money to fly in engineers from around the country to attend Boulder Startup Week beginning in a few weeks on May 18.

Compounding the challenge is the fact that its probably the best time in tech history to be an entrepreneur and start your own company.  There’s efficient access to capital and mentoring through firms like AngelList, YCombinator and TechStars and valuations are soaring, encouraging top technical talent to do their own thing, which is exactly what is happening, effectively removing top engineering talent from the labor pool.  How crazy is it that top engineers leave Google, start their own company, get acquired within a year and end up back at Google as an employee?

It’s a downright war for talent right now.

Bin Laden Dead. Now What?

Wow, what a historic day yesterday.  It will be one of those moments for me, like the Challenger Space Shuttle disaster or Princess Diana’s death, where I will remember forever where I was and what I was doing the moment I heard the news.  I was gathered with friends, including Sudhir “Suds” Kandula, to watch the finale of “America’s Next Great Restaurant” in which Suds was a top 3 finalist when the NBC News Special Report interrupted the broadcast.  Unfortunately, Suds came in 2nd place, but the Bin Laden news was an epic prize for all of us.  A particular sweet justice for all of service men and women who have sacrificed so much over the past decade.

I’ve been amazed at the pace of information flow, particularly on Twitter, regarding the Bin Laden situation.  Twitter stated that at the beginning and end of President Obama’s speech, there were over 5,100 tweets per second on their network.

I’m certainly not qualified to talk intelligently on the subject of what Bin Laden’s death means to global terrorism, so I’ll instead share a few of the most interesting articles I’ve come across in the last 24 hours.

However, I will say this – I for one don’t believe that Bin Laden’s death spells the end of Al Qaeda or that Al Qaeda becomes so fractured and disorganized that it becomes completely ineffective.   If there is any organization in the world that should have a detailed succession plan in place for leadership, it would be Al Qaeda.   Setting emotion aside for a second, Bin Laden created an evil but effective worldwide organization that operated efficiently in a decentralized way – and did so at the same time that all superpower countries built their own organizations with the sole purpose of destroying Al Qaeda and killing its leadership.  Can you imagine operating an organization under those terms?  He was a ruthless mass-murderer, but he was not stupid.  I fear that in some respects Bin Laden may be more powerful dead than alive, at least in the near term.

Here are links to several interesting, and differing points of views on what Bin Laden’s death means for the world and the U.S.:

  • The Special Ops Team that executed the mission against Bin Laden.
  • Maps of the Bin Laden compound, in unbelievable detail.
  • An alternative and somewhat brutal point of view on Bin Laden’s impact on U.S. Government and U.S. citizen behavior entitled “He Won“.
  • Debate among New York Times columnists on the impact of this historic event.

What do you think Bin Laden’s death means for Al Qaeda, global terrorism and the U.S.?