Tribunal orders former Scott Sports CEO to sell shares, ending bizarre "power struggle" which saw police called to HQ over "dispute between managers"

A "power struggle" at Scott Sports — that last year escalated to the point of police being called to the company's headquarters amid a "dispute between managers" — may have been resolved, an arbitration tribunal for the International Chamber of Commerce ruling that former CEO Beat Zaugg must sell his shares.

The story erupted in April 2024 when Zaugg, who has served as Scott Sports' CEO since 1998, claimed he was still in charge of the American bicycle and sportswear company despite its parent company's decision to replace him to "refresh" the business. Then, days later, police were called to Scott headquarters in Switzerland as the corporate drama continued.

Now almost a year on, the Paris-based arbitration tribunal for the International Chamber of Commerce (ICC) has sided against Zaugg, according to Bike Europe. The ruling has ordered the former CEO to cede his 47 per cent stake in the company to its majority shareholder, Youngone Corporation, the Korean company which bought 50.1 per cent of Scott Sports in 2015.

When Youngone announced a change of CEO at Scott Sports last spring — appointing Kim Juwon, already a member of Scott's board of directors — Zaugg disputed the development and maintained he remained in his role, one he had held for 26 years.

Juwon would be advised by two industry experts from Germany and the USA with many years of experience with Specialized, Accell Group (the owners of Raleigh) and Focus & Kalkhoff Holding. The decision, the company said, was taken to "refresh Scott's development to become a world-class manufacturer in bikes and other outdoor sport categories".

Scott Sports' press release announcing the change in CEO said: "The board of directors of Scott emphasises that the long-standing commitment of majority shareholder Youngone to Scott remains central and is not called into question."

However, Zaugg disputed the announcement and claimed it was made "to destabilise the company and its employees".

"I am still standing in this power struggle," he said at the time. Further context to the situation was that in December 2023, Youngone announced a 150 million Swiss francs (£131 million) loan to Scott Sports for additional liquidity, although Zaugg claimed the need for it only arose because Youngone "destroyed our banking relationships".

A few days later and police cars were pictured outside Scott Sports' HQ in Givisiez, Switzerland. Reports suggested officers were called to intervene in a managerial dispute, though one official told the outlet that "nothing serious" occurred and that no member of staff was injured or arrested.

"Nothing serious happened," Fribourg police spokesperson Bertrand Ruffieux said. "We intervened in a civil matter, a dispute between managers. In this type of case, the police are called to the scene to find a way to open a discussion, and for people to understand each other. But there are no injured or anyone arrested."

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The dispute has since been the subject of the tribunal, the ruling now coming that Zaugg is to sell his stake, the amount the ousted CEO to receive for his 47 per cent stake having not yet been decided and the subject of further proceedings. Once bought, Youngone will hold in excess of 97 per cent of the company.

In 2023, Scott Sports found itself in the middle of another peculiar battle, after the family of legendary AC/DC frontman Bon Scott sought to register his name as a trademark for merchandise, including a line of clothing, sunglasses, and bags.

However, Scott Sports contested the application, claiming that the 'Scott' trademark was too similar to their own and could potentially lead to "customer confusion", ostensibly between their range of aero bikes and wallets bearing the name of a rock icon.