Looming Nike Scandal (Zion allegation shown to be a hoax)

[unclsam1]

His activities ensure there will be no abatement of lawyer jokes.

[JasonEvans]

Ok, sorry for the whole settlement vs. extortion thing. I was merely trying to come up with some possible defense for Avenatti after hearing those recordings.

In other news, Avenatti just named Bol Bol on twitter --

Bol Bol and his handlers also received large sums from Nike. The receipts are clear as day.

If Avenatti somehow has receipts, that could be a problem for Nike. That said, I'm a little surprised Bol Bol would be involved in this stuff as his dad made millions in the NBA. It looks like there may be something going on with the EYBL, Nike's AAU league. It would hardly be surprising to find out Nike was using the EYBL to get closer to elite prospects and perhaps butter the kids/families up so those kids sign with Nike when they turn pro.

-Jason "the high school basketball/AAU world has been a cesspool for a loooong time... if you want to clean up amateur hoops, that is the place to start" Evans

[flyingdutchdevil]

Ok, sorry for the whole settlement vs. extortion thing. I was merely trying to come up with some possible defense for Avenatti after hearing those recordings.

In other news, Avenatti just named Bol Bol on twitter --



If Avenatti somehow has receipts, that could be a problem for Nike. That said, I'm a little surprised Bol Bol would be involved in this stuff as his dad made millions in the NBA. It looks like there may be something going on with the EYBL, Nike's AAU league. It would hardly be surprising to find out Nike was using the EYBL to get closer to elite prospects and perhaps butter the kids/families up so those kids sign with Nike when they turn pro.

-Jason "the high school basketball/AAU world has been a cesspool for a loooong time... if you want to clean up amateur hoops, that is the place to start" Evans

According to Wikipedia on Manute Bol:

Bol established the Ring True Foundation to continue fund-raising for Sudanese refugees. He gave most of his earnings (an estimated $3.5 million) to their cause.

I'm sure the Bol family has some money, but this isn't Lebron money. It's not even Jahlil money. I'd say that Tyus has more money in his bank account right now than the Bol family.

[Nick]

More from Avenatti on Twitter:

The corruption at Nike was rampant with Merl Code and increased with his apprentice DeBose after Code left for Adiddas. Those above DeBose knew all about the payments. Nike conspired to route many of the payments through a convicted felon. Nike then lied to the government.

If Nike was cooperating with the government for over a year relating to this scandal (they weren’t - this is a lie), where are the disclosures in their SEC filings? There are none. Wait until the SEC begins their investigation & starts asking why Nike hid this info from investors

I'm not sure what to think of all this. On the one hand, Avenatti is really sleazy, but on the other hand so are many aspects of college athletics.

[swood1000]

If Nike was cooperating with the government for over a year relating to this scandal (they weren’t - this is a lie), where are the disclosures in their SEC filings? There are none. Wait until the SEC begins their investigation & starts asking why Nike hid this info from investors.

Maybe an SEC specialist can correct me, but if a company is cooperating with the FBI in an undercover investigation does the SEC require that to be disclosed on the financial statements?

Those above DeBose knew all about the payments. Nike conspired to route many of the payments through a convicted felon. Nike then lied to the government. …They are trying to divert attention from their own crimes.

So I guess this is going to be his defense, but what is it? Savaging Nike is no doubt satisfying for him but how is that a defense? Is he saying that he was just representing his client but that notorious criminal enterprise Nike, when their wrongdoing was uncovered, decided to frame him as an extorter in order to portray themselves as the innocent victim? Not sure how much money I would bet on this strategy, but perhaps these are lean days for viable defense strategies for Avenatti.

[MChambers]

Maybe an SEC specialist can correct me, but if a company is cooperating with the FBI in an undercover investigation does the SEC require that to be disclosed on the financial statements?



So I guess this is going to be his defense, but what is it? Savaging Nike is no doubt satisfying for him but how is that a defense? Is he saying that he was just representing his client but that notorious criminal enterprise Nike, when their wrongdoing was uncovered, decided to frame him as an extorter in order to portray themselves as the innocent victim? Not sure how much money I would bet on this strategy, but perhaps these are lean days for viable defense strategies for Avenatti.

I used to be an SEC specialist. In general, being investigated, even if you're cooperating, doesn't have to be disclosed. Usually, you don't have to disclose unless there is a pending proceeding (actual court case, not just an investigation). If you have reached an agreement to settle the case, you'd have to disclose that, but that's not the case here, apparently.

Sometimes, companies will choose to disclose, but Avenatti seems to think it's required.

[Tripping William]

I used to be an SEC specialist.

Paul Finebaum? Is that you?

[BandAlum83]

According to the linked document, Avenatti's phone calls and meetings where he extortedNike were recorded - with permission. Avenatti has to be the world's dumbest lawyer.

By the way, it's weird that the linked document includes repeated references to a co-conspirator (another lawyer), who participated in the phone calls and meetings. Why would this person not be named and similarly charged?

IANAL, but as this is being called extortion, couldn't it just as easily be considered settlement negotiations?

I haven't really looked into the specifics, but I would imagine that is a plausible defense.

ETA: Looks like this has been brought up and discarded

[swood1000]

On the other hand, Avenatti’s co-conspirator is reportedly Mark Geragos, who also represents Jussie Smollett, against whom all charges were dropped Tuesday, with Smollett saying:

"I want you to know that not for a moment was it in vain. I have been truthful and consistent on every level since day one. I would not be my mother’s son if I was capable of one drop of what I’m accused of.”

Conviction doesn’t seem any more likely for Avenatti than it seemed for Smollett. Maybe Geragos has some magic dust.

[Kfanarmy]

Avenatti is a joke and this whole thing makes him look just awful, but one has to admit there is a very fine line between extortion and a settlement negotiation. If he prepared a legal action against Nike on behalf of that AAU coach, he may have a winning argument there.Of course, there is also the misappropriation of client finds as well as the bank and wire fraud to deal with.

-Jason "dude is probably losing his law license and making license plates in the near future" Evans

Isn't this pure speculation?

[BandAlum83]

On the other hand, Avenatti’s co-conspirator is reportedly Mark Geragos, who also represents Jussie Smollett, against whom all charges were dropped Tuesday, with Smollett saying:



Conviction doesn’t seem any more likely for Avenatti than it seemed for Smollett. Maybe Geragos has some magic dust.

So, if I have this right, After Smollett was convicted and sentenced by the public and the media, all charges against him were dropped?

Did double jeopardy play a part?

[camion]

So, if I have this right, After Smollett was convicted and sentenced by the public and the media, all charges against him were dropped?

Did double jeopardy play a part?

Not double jeopardy. I believe it was Celebrity Jeopardy.

[75Crazie]

Paul Finebaum? Is that you?

I hate it when somebody beats me to a good joke.

[swood1000]

So, if I have this right, After Smollett was convicted and sentenced by the public and the media, all charges against him were dropped?

You have that right.

Did double jeopardy play a part?

I don't think it has been explained yet. Apparently the police and the mayor (Rahm Emanuel) are not happy.

[Saratoga2]

Isn't this pure speculation?

First the Zion shoe incident and noow this. Nike PR is taking a pounding.

[swood1000]

IANAL, but as this is being called extortion, couldn't it just as easily be considered settlement negotiations?

I haven't really looked into the specifics, but I would imagine that is a plausible defense.

ETA: Looks like this has been brought up and discarded

There can be legitimate and extortionate threats of economic harm. In federal law, extortion includes an element of wrongfulness.

The element of wrongfulness may be supplied by (1) the lack of a plausible claim of entitlement to the property demanded, or (2) the lack of a good faith belief of entitlement, or (3) the lack of a nexus between the threat and the claim of right. It may be supplied also, in this Court's view, by inherently wrongful conduct. The existence of this element of wrongfulness is a question of fact for the fact finder. Finally, neither the plausibility of a claim of right nor the threatener's good faith belief is established merely by proof that the threatener in fact thought that the threatener, in some cosmic, moralistic or personal ethical sense, was entitled to the property.

So who was Avenatti’s client? The coach? What injury did he suffer and does he have a plausible claim of entitlement to $22.5 million or is that really just the price Nike must pay to avoid a $10 billion reduction in its market capitalization?

[cspan37421]

I have learned not to prejudge a case based on the claims of one side only, and as a non expert in law (IANAL) I'm not sure I can even judge smoking-gun recorded conversations half the time.

Having set that context, I found this opinion column (by Matt Levine, Bloomberg) enlightening and interesting. It's been titled, "You Have to Threaten People Right"

https://www.bloomberg.com/opinion/ar...n-people-right

I wonder if GW had a class that covered that topic, or if it's a learn-on-the-job sort of thing.

Couple side notes, just curious things to me, I welcome feedback on them.

One - those who claim college players aren't paid, and how unfair it is for the school to profit off their labor ... setting aside what I understand are modest permissible stipends, doesn't that argument rest on a major unstated premise that a college education is worthless, even as payment-in-kind? Some of us had to pay cash money for ours.

Two - why aren't more people bothered by the fact that under-the-table payments result in tax evasion, and that the rest of us effectively pay more taxes as a result? [either rates could be lower, deficits/debt could be lower, purchasing power of the dollar higher etc etc].

[swood1000]

One - those who claim college players aren't paid, and how unfair it is for the school to profit off their labor ... setting aside what I understand are modest permissible stipends, doesn't that argument rest on a major unstated premise that a college education is worthless, even as payment-in-kind? Some of us had to pay cash money for ours.

I think the premise is that the value of tuition, room and board is miniscule compared to the true market value of the services of the top athletes plus the amount they could command in endorsements.

[MChambers]

Paul Finebaum? Is that you?

I hate it when somebody beats me to a good joke.

I don't get the joke. Who is Paul Finebaum?

[Tripping William]

I don't get the joke. Who is Paul Finebaum?

A sportswriter and sports radio personality (does some TV, too) who made his name as a so-called "expert" on the Southeastern Conference. To my observation, there is some general perception that his expertise has slipped over the years, at least as he has become increasingly embedded in the Worldwide Leader.