{"id":4737,"date":"2017-09-27T12:15:11","date_gmt":"2017-09-27T09:15:11","guid":{"rendered":"http:\/\/anticorr.media\/?p=4737"},"modified":"2017-09-29T10:41:52","modified_gmt":"2017-09-29T07:41:52","slug":"fbr-arestovalo-rukovodstvo-adidas-i-4-basketbolnyx-trenerov-po-podozreniyu-v-korrupcii","status":"publish","type":"post","link":"https:\/\/anticorr.media\/en\/fbr-arestovalo-rukovodstvo-adidas-i-4-basketbolnyx-trenerov-po-podozreniyu-v-korrupcii\/","title":{"rendered":"Corruption Probe Into College Basketball Threatens to Set Back Adidas\u2019s U.S. Overhaul"},"content":{"rendered":"<p>This material belongs to: <a href=\"https:\/\/www.wsj.com\/articles\/corruption-probe-into-college-basketball-threatens-to-set-back-adidass-u-s-overhaul-1506467631\">Wall Street Journal<\/a>.<\/p>\n<p class=\"sub-head\"><strong>A company executive and an Adidas affiliate arrested as part of a federal probe.<\/strong><\/p>\n<p><strong>In a push to boost its brand recognition among Americans,\u00a0<a href=\"http:\/\/quotes.wsj.com\/ADDYY\">Adidas<\/a>\u00a0<span class=\"company-name-type\">AG<\/span>\u00a0<a class=\"media-object-chiclet down \" href=\"http:\/\/quotes.wsj.com\/ADDYY?mod=chiclets\" data-channel=\"\/quotes\/zigman\/364540\/delayed\" data-symbol=\"ADDYY\" data-changepercent=\"-3.16\">ADDYY\u00a0-3.16%<\/a> invested tens of millions of dollars in college athletics in recent years. On Tuesday, that effort suffered a potentially devastating blow, when one of the sportswear company\u2019s executives and an affiliate of the company were arrested as part of a\u00a0<a class=\"icon none\" href=\"https:\/\/www.wsj.com\/articles\/arrests-expected-in-probe-of-alleged-bribery-kickbacks-at-college-basketball-programs-1506431065\">federal probe into corruption in college basketball.<\/a><\/strong><\/p>\n<p>While the scheme described in the criminal complaints was sprawling, Adidas was at the center of many of the most serious allegations, which included arranging for six-figure payments to high-school basketball players and their families in exchange for their commitment to play at Adidas-sponsored universities.<\/p>\n<p><a href=\"http:\/\/www.adweek.com\/brand-marketing\/top-adidas-marketer-charged-with-multiple-counts-of-fraud-in-alleged-college-basketball-bribery-scheme\/\">James \u201cJim\u201d Gatto<\/a>, the global basketball-sports marketing director at Adidas, was among the 10 people arrested.<\/p>\n<p>In the complaint, prosecutors said Mr. Gatto used company funds for bribes and evaded detection by labeling the payments as going to an organization where one of his alleged conspirators was connected. That individual, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Merl_Code\">Merl Code<\/a>, was an Adidas affiliate, the complaint said. Adidas describes affiliates on its website as independent contractors.<\/p>\n<p>\u201cIt\u2019s on the books, [but] it\u2019s not on the books for what it\u2019s actually for,\u201d Mr. Gatto said in recordings captured by the government, referring to one of the alleged payments.<\/p>\n<p>A lawyer for Mr. Gatto didn\u2019t immediately respond to a request for comment.<\/p>\n<p>A lawyer for Mr. Code said he was released on bond and is due to report to federal court in New York on Oct. 10.<\/p>\n<p>Adidas wasn\u2019t mentioned by name in the complaint but the company confirmed its involvement in the probe.<\/p>\n<p>\u201cToday, we became aware that federal investigators arrested an Adidas employee,\u201d an Adidas spokeswoman said in a statement. \u201cWe are learning more about the situation. We\u2019re unaware of any misconduct and will fully cooperate with authorities to understand more.\u201d<\/p>\n<p>In a news conference on Tuesday, acting U.S. Attorney <a href=\"https:\/\/en.wikipedia.org\/wiki\/Joon_Kim\">Joon H. Kim<\/a> said that \u201cthere are no other allegations of more senior people at that company\u201d involved in the probe.<\/p>\n<p>The allegations could undermine the German company\u2019s recent sales rebound in the U.S. Adidas shares closed down 2.5% at \u20ac187.68 on Tuesday.<\/p>\n<p>Over the past three years, Adidas has undergone a massive internal reorganization, as well as a marketing overhaul, to boost its sales in the U.S., moving executives from its global headquarters in <a href=\"https:\/\/en.wikipedia.org\/wiki\/Herzogenaurach\">Herzogenaurach<\/a>, Germany, to its American office in <a href=\"https:\/\/en.wikipedia.org\/wiki\/Portland,_Oregon\">Portland<\/a>, Ore.<\/p>\n<p>During that time, the company has signed outfitting deals with several big sports schools, most notably the <a href=\"https:\/\/en.wikipedia.org\/wiki\/University_of_Miami\">University of Miami<\/a>, which had been a\u00a0<a href=\"http:\/\/quotes.wsj.com\/NKE\">Nike<\/a>\u00a0school for decades. In August, Adidas renewed its sponsorship deal with the <a href=\"https:\/\/en.wikipedia.org\/wiki\/University_of_Louisville\">University of Louisville<\/a>, a longtime cornerstone of the company\u2019s network of sponsored colleges and a top-flight basketball school.<\/p>\n<p>In the criminal complaint, prosecutors alleged that Mr. Gatto steered $100,000 to a player\u2019s family so that he would attend Louisville.<\/p>\n<p>In\u00a0<a class=\"icon none\" href=\"https:\/\/www.wsj.com\/articles\/how-adidas-aims-to-get-its-cool-back-1427072066\">a 2015 interview<\/a>, <a href=\"http:\/\/footwearnews.com\/2017\/business\/athletic-outdoor\/adidas-president-mark-king-north-america-corporate-culture-360294\/\">Adidas North America President Mark King<\/a> said the company\u2019s reset was about rebranding the company to appeal to more Americans. \u201cI know we\u2019re a soccer brand globally,\u201d he said, \u201cbut in the U.S. we have to be about U.S. sport.\u201d<\/p>\n<p>The bet has paid off, and Adidas is currently the shining star in a sportswear industry hamstrung by increased competition, the decline of traditional sporting-goods retailers, and a shift to online shopping. Sales in North America rose 26% in the most recent quarter, and Chief Executive <a href=\"https:\/\/en.wikipedia.org\/wiki\/Kasper_R%C3%B8rsted\">Kasper Rorsted<\/a>, who joined the company last fall,\u00a0<a class=\"icon none\" href=\"https:\/\/www.wsj.com\/articles\/adidas-shares-leap-on-bright-growth-outlook-1488965045%20https:\/www.wsj.com\/articles\/adidas-shares-leap-on-bright-growth-outlook-1488965045\">promised Adidas would increase profits\u00a0<\/a>faster than rivals.<\/p>\n<p><a href=\"https:\/\/solecollector.com\/news\/2014\/08\/peter-moore-discusses-the-origin-of-eqt-in-the-best-of-adidas\">Peter Moore<\/a>, a former chief executive of Adidas America in the 1990s who now does consulting work for the brand, said it is too soon to estimate how much impact the probe will have on the company.<\/p>\n<p>\u201cIt\u2019s fair to say it will have some, especially on the performance side,\u201d of the business, he said, referring to products geared toward use in sports, as opposed to fashion-oriented gear.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This material belongs to: Wall Street Journal. A company executive and an Adidas affiliate arrested as part of a federal probe. In a push to boost its brand recognition among Americans,\u00a0Adidas\u00a0AG\u00a0ADDYY\u00a0-3.16% invested tens of millions of dollars in college athletics in recent years. On Tuesday, that effort suffered a potentially devastating blow, when one of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4738,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,38],"tags":[64,140,93,71,157,62,94,102,63,105,153],"class_list":["post-4737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-review","category-investigation","tag-antikorrupcionnaya-politika","tag-biznes-protiv-korrupcii","tag-borba-s-korrupciej","tag-vzyatka","tag-germaniya","tag-korrupciya","tag-korrupciya-v-biznese","tag-korrupciya-v-sporte","tag-protivodejstvie-korrupcii","tag-ssha","tag-ekonomicheskaya-korrupciya","has-thumb"],"translation":{"provider":"WPGlobus","version":"3.0.2","language":"en","enabled_languages":["ru","en"],"languages":{"ru":{"title":true,"content":true,"excerpt":false},"en":{"title":true,"content":true,"excerpt":false}}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - 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