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Sources: Nike Still In U.S. DOJ's Crosshairs Over Late-'90s Brazilian FA Deal

U.S. authorities are examining payments made by Nike under a '96 soccer sponsorship with Brazil for "possible evidence of any wrongdoing by the company in addition to its counterparts in the deal," according to sources cited by Viswanatha, Germano & Kowsmann of the WALL STREET JOURNAL. The examination indicates that the company "is still of interest as the Justice Department pursues its wide-ranging probe of corruption in the global soccer business." Nike in a statement said, "We have been cooperating, and will continue to cooperate, with the authorities" (WALL STREET JOURNAL, 6/13). Meanwhile, in Portland, Allan Brettman examined Nike culture in the mid to late '90s, when the company signed the deal with Brazil that is now in question. Former Nike exec Fernando de los Reyes' job in the late '90s was to "develop a marketing plan not only for" the Brazilian men's national soccer team but also an individual one for its teenage sensation, Ronaldo. The details of how Nike "secured the Brazilian national-team contract are now caught up in a global soccer scandal, which has led in recent weeks to 14 indictments and the resignation of FIFA President Sepp Blatter over corruption allegations." A middleman Nike worked with to help negotiate the contract "is accused of bribing a Brazilian soccer official to cement the deal." de los Reyes said that he "doesn't have any knowledge about how the contract was reached, but has a hard time believing Nike could have been linked to bribery." He said, "Back then, they were as cautious as anyone." Brettman wrote, however, the company also "was ambitious." de los Reyes "declined to say how much of a marketing budget he was allotted." He said, "The leadership was like 'go big or go home.'" de los Reyes said of Nike, "They went at it strategically and big. They realized it would take a lot of resources'" (Portland OREGONIAN, 6/12).

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