By Sara Germano
The sweeping U.S. crackdown on alleged corruption at FIFA
appears to have snagged Nike Inc. in its net.
Among the details in the Justice Department's indictment are
allegations of bribery involving efforts by "a multinational
sportswear company headquartered in the United States" to win an
apparel licensing deal with Brazil's national soccer team.
Nike isn't named in the indictment, which refers to the party as
"Sportswear Company A." But according to Nike's website the company
signed a sponsorship deal with Brazilian national soccer federation
CBF in 1996, the same year in which the events described in the
indictment take place.
Nike wouldn't comment specifically on the issues raised in the
indictment but said it is concerned by the allegations and is
cooperating with the investigation.
"Nike believes in ethical and fair play in both business and
sport and strongly opposes any form of manipulation or bribery,"
the company said in an emailed statement. "We have been
cooperating, and will continue to cooperate, with the
authorities."
According to the indictment, Sportswear Company A in 1996 signed
a 10-year, $160 million agreement to become a co-sponsor of the CBF
and its "exclusive footwear, apparel, accessories, and equipment
supplier."
Three days later, the indictment alleges, an official from the
sportswear company signed a one-page agreement with a
representative of a sports marketing agency called Traffic Brazil
allowing the agency to invoice the company for additional marketing
fees.
Traffic Brazil proceeded to invoice Sportswear Company A for an
additional $30 million in payments between 1996 and 1999, payments
that were used in part for bribes and kickbacks, according to the
indictment.
Nike didn't respond to repeated requests for comment on the
specifics of the indictment Wednesday. None of the named defendants
were identified as having ties to a sportswear company.
Nike made its name selling running shoes and its fortune with
basketball shoes like Air Jordan. But over the past 20 years,
soccer has played a significant role in the American company's
global business.
Nike has plowed money into the sport in an effort to win fans
and sales abroad. It has signed outfitting deals with national
soccer federations including those of England, France, the
Netherlands and the U.S.
In a statement on the company's website, Nike co-founder Phil
Knight says, "We will only truly understand football when we see
the game through the eyes of Brazilians."
Nike's soccer sales grew 21% to $2.3 billion for the year ended
May 31, according to a regulatory filing.
The wide-ranging probe by the Justice Department, which lists 14
named defendants as well as 25 co-conspirators, describes a
pervasive culture of corruption over 24 years in the global world
of soccer.
Write to Sara Germano at sara.germano@wsj.com
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