Nike cash may have ended up in the pocket of a "high-ranking" official of Brazil's national soccer team, according to the same U.S. Justice Department indictment that led to corruption charges filed Wednesday against several executives from global soccer's governing body, FIFA.
The 47-count indictment unsealed in Brooklyn federal court charged nine officials from FIFA and five corporate executives with racketeering and corruption for accepting kickbacks and bribes related to international soccer.
Nike, and its executives, were not named or charged in the indictment.
But the document describes one alleged "scheme" involving Brazil's national team and a 1996 deal with an unidentified "multinational sportswear company headquartered in the United States" to be the team's exclusive footwear, apparel and equipment provider.
Nike has sponsored Brazil — arguably the world's most successful and high-profile national team — since 1996. The deal is heralded on Nike's website as the one in which Nike "makes its commitment to the world's most popular sport undeniable."
The indictment describes negotiations between the unidentified sportswear company and a "high-ranking" official of the South American Football Confederation and the Brazil national team that led to the company agreeing to pay $160 million for a 10-year deal to be the team's exclusive footwear and apparel provider.
In addition, the sportswear company signed an agreement that permitted a Brazilian sports marketing company called the Traffic Group to invoice the sportswear company for "marketing fees," according to the indictment.
Federal prosecutors claim Traffic Group invoiced the sportswear company for $30 million between 1996 and 1999. Prosecutors allege the owner of the Traffic Group then paid "half of the money he made from the sponsorship deal, totaling in the millions of dollars, as a bribe and kickback" to the same Brazilian team official who negotiated the sponsorship deal with the sportswear company.
The indictment does not provide any information as to whether the sportswear company had knowledge of the alleged kickback payments.
The deal was terminated before the end of the 10-year agreement on Jan. 25, 2002, according to federal prosecutors.
Jose Hawilla, who is not identified by name in the indictment, is identified in a news release announcing the charges as the owner and founder of Traffic Group. On Dec. 12 he waived indictment and pleaded guilty to charges of racketeering, wire fraud, money laundering and obstruction of justice.
Nike released a statement late Wednesday morning:
Like fans everywhere we care passionately about the game and are concerned by the very serious allegations. Nike believes in ethical and fair play in both business and sport and strongly opposes any form of manipulation or bribery. We have been cooperating, and will continue to cooperate, with the authorities.
Traffic Group's Miami office did not immediately respond to an email.
The investigation is ongoing.
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