US securities regulators are examining the behaviour of several companies with links to FIFA or other soccer bodies caught up in a major corruption scandal to see if there were possible violations of US federal bribery laws, a person with knowledge of the matter said.
The civil probe, which is in its early stages and may not lead to any findings of wrongdoing or enforcement action, is being conducted by the US Securities and Exchange Commission (SEC).
It opens a new front in a wide-ranging investigation by the US and Swiss authorities into bribery involving soccer officials, marketing executives and various companies.
In late May, the US indicted nine soccer officials – most of whom held positions at FIFA – and five executives for a range of offences related to more than $150 million of alleged bribes and kickbacks.
The SEC probe centers on publicly-traded companies who have been involved in soccer contracts, such as athletic shoes and sportswear company Nike Inc, said the source.
Although Nike has not been specifically named or charged with any wrongdoing, the company was swept into the scandal when US prosecutors in the indictment described bribes and kickbacks in connection with a landmark 1996 Nike deal in Brazil.
The description of the $160 million, 10-year deal signed by “Sportswear Company A” matched exactly the details of Nike’s agreement to become the footwear and apparel supplier and sponsor of the Brazilian national team, which at that time was the most successful in the world.
Securities experts say the SEC could potentially have a hook in the case through the Foreign Corrupt Practices Act (FCPA), an anti-bribery law.
The SEC and the US Department of Justice both have power to bring FCPA cases, with the SEC’s jurisdiction centering on violations by public companies.
The law’s core anti-bribery provisions only apply to payments to governments or government officials. The Brazilian Football Confederation (CBF), which signed the 1996 deal with Nike, is a private organisation.
Nike is the only US public company to be referenced in the US indictment of the officials and executives.
Major publicly traded companies in the US who are FIFA sponsors include McDonald’s Corp, Visa Inc and Coca-Cola Co.