Nike Inc (NYSE:NKE) Negates Involvement in FIFA Bribery Case

Nike Inc (NYSE:NKE) clarifies its involvement with FIFA and allege that indictment of the sports organization did not mean that it was guilt too. The involvement of an unnamed sports company has also been found in the bribery scandal involving FIFA. As Nike was one of the major promoters of the organization, and its involvement in the corruption case are suspected.

Around nine soccer officer, five sports media and promotions officials were charged with around $150 million and seven FIFA executives have been arrested by the Swiss police this week. Clarifying involvement with the bribery case, an official company statement said that the documents that were uncovered in Brooklyn did not make Nike guilty. According to the company, no proof of involvement of any Nike officials was found in the papers. Also, they argue that no allegation of any executive having any knowledge of the scheme has also surfaced.

Nike Expresses Concern

In its official statement, Nike Inc (NYSE:NKE) raised their concerns on the bribery scandal involving FIFA and said that the company was against all such corrupt moves. Nike said that it was not involved in any way, and unnecessary allegations were being levied on the company. The statement also said that Nike was cooperating with the authorities and would continue to do so.

The criminal indictment issued against FIFA alleged that a contract was signed by an unnamed company and $160 million cash was to be given to the Brazilian soccer team in 10 years. For this, the alleged sports company had to pay an additional $40 million to Traffic Group through a Swiss bank account.

Traffic Group Owner Pleads Guilty

The owner of Traffic Group Jose Hawilla confessed his crime of becoming a middleman between FIFA and other broadcast and sponsor companies to strike a deal. As Nike negates being the unnamed company, authorities are also investigating the case to find whether the company was making authentic claims or not.

Meanwhile, other sponsors like Visa Inc (NYSE:V) also seemed perturbed with the scandal. The company said that unless the organization was able to improve the reputation of the game, they would not continue to support them.

 

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Cooper

Cooper

Cooper is a graduated from Buffalo State College in New York with a bachelor’s degree in Broadcast Journalism.