The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
SAO PAULO, Brazil — Nike Inc. said it's cooperating with authorities on the same day the U.S. unsealed charges saying an unidentified sportswear company took part in bribing a Brazilian soccer official for a sponsorship agreement.
The deal described in an indictment of FIFA officials mirrors one obtained by Nike. The charges refer to a U.S. company that signed a partnership with the Brazilian federation in 1996. Nike, based in Beaverton, Oregon, announced its decade-long pact with Brazil that year.
“Nike believes in ethical and fair play in both business and sport and strongly opposes any form of manipulation or bribery,” the company said Wednesday in an e-mailed statement. “We have been cooperating, and will continue to cooperate, with the authorities.” Nike, which isn’t named in the indictment, declined to comment on the allegations.
Nike shares fell 0.6 percent to $102.84 on Wednesday in New York. The stock has gained 7 percent this year.
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Winning the Brazilian sponsorship put Nike on the global soccer map. In 1994, its sales from soccer totaled $40 million. More than two decades later, it is challenging Adidas AG for the title of biggest brand in the sport, with revenue from soccer reaching $2.27 billion in fiscal year 2014.
Hotel Raid
Swiss police raided the luxury Baur au Lac hotel in Zurich at dawn Wednesday and arrested seven FIFA officials. Two former soccer executives were also charged by the U.S. in the wide-ranging corruption indictment, which includes counts of racketeering, wire fraud and money laundering.
In New York, Justice Department officials vowed more arrests, and to widen the investigation of FIFA officials and banks that may have been used in the alleged conspiracy.
“They were expected to uphold the rules that keep soccer honest, and protect the integrity of the game,” U.S. Attorney General Loretta Lynch said at a news conference. “Instead, they corrupted the business of worldwide soccer to serve their interests and enrich themselves.”
According to the indictment, unsealed Wednesday in federal court in Brooklyn, New York, the unidentified company made a deal to pay $160 million over 10 years for the right to exclusively sell Brazilian national team apparel and footwear.
In a separate agreement, the unidentified company allegedly paid $40 million through a Swiss bank account to an official at a firm that buys and sells marketing rights in Brazil. Some of those funds were used to pay off a “high-ranking” FIFA and Brazilian soccer executive, according to the indictment.
Brooklyn U.S. Attorney Kelly T. Currie declined to comment Wednesday on the unidentified company.
By Matt Townsend, Tariq Panja; editors: David E. Rovella, Nick Turner.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.