Nike and Paris Saint-Germain in fraud investigation

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A yearlong investigation into illegal kickbacks has produced new allegations against Nike France and the Ligue 1 club.

Three ex-Nike France officials are under investigation after charges of improperly hiding player wages in the form of royalties. Investigators charge the bogus royalties were an attempt to avoid paying social charges for health and welfare services.

Nike France, which has been the club’s official sponsor since 1989, rewarded the club’s players with bonuses in form of special contracts for helping the company’s image. The company then recouped the money from the club in form of fines for breaches of contract with company. The company denies the charges, but officials said they would continue to work with investigators.

Among the three investigated officials is the former head of the company, Jean-Claude Petit. Former PSG finance director Pierre Frelot, who left the club three years ago, is also being investigated.

Originally, the investigation was opened last year to check whether kickbacks were paid for about 30 transfers involving former PSG players, including Ronaldinho, Marco Simone and Nicolas Anelka.

Agent Eric Lovey has won his first legal battle against the PSG following a court’s decision to study a compensation claim amounting to GBP 1.3 million. The Parisian court also rejected a request from PSG to dismiss Lovey’s claim, who believes he is owed the money due to the Brazilian Ronhaldino’s transfer to Spanish Primera Liga club Barcelona. Lovey worked for PSG between 2000 and 2003 as the club’s representative in South America. His contract officially expires next June. He is also suing the club for failing to pay his salary for the past two years.