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A Nike soccer ball is displayed at a Niketown store in Beverly Hills, California Reuters/Lucy Nicholson

Sports apparel giant Nike has become embroiled in the recent FIFA scandal, due to lack of knowledge in negotiating with the organization. After the World Cup was hosted by the United States in 1994, Nike wanted to grab a foothold in the biggest sports in the world, so the company’s top executives entered a deal with FIFA for $200 million, lasting a decade beginning 1996. The agreement was signed by Philip Knight, co-founder of Nike, President Tom Clarke, Cees van Nieuwenhuizen, director of soccer sports-marketing and soccer chief Sandy Bodecker, based on a Wall Street Journal report.

However, Nike’s lack of experience and knowledge in dealing with FIFA resulted to the company getting entangled in the recent corruption and bribery scandal. Nike’s contract stated that the company would pay FIFA directly, and not through a middleman. Subsequently, it was revealed that $30 million was paid through a side deal between Nike and a middleman. The middleman allegedly used a portion of the amount for bribes.

Nike and its executives were not included in the indictment and the company stated that it will participate with the investigation. Guardian wrote that Nike was referred to as “Sportswear Company A” in the indictment, although the company was not accused of bribery and other crimes. Nike confirmed that it was the unidentified company.

“We were surprised a little bit in terms of soccer politics and how business is done in that world. In some ways it is the most political of all the sports,” Knight said in the same Wall Street Journal report.

Nike stated that it believes in ethical and fair play in both business and sport and strongly opposes any form of bribery or manipulation. The company also vehemently denied its involvement in the corruption scandal.

“The charging documents unsealed [on Wednesday] in Brooklyn do not allege that Nike engaged in criminal conduct. There is no allegation in the charging documents that any Nike employee was aware of or knowingly participated in any bribery or kickback scheme,” Nike stated.

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