An excerpt from today’s Oregonian by Jim Manning
Federal prosecutors reportedly are looking into the financial relationship between Nike and USA Track & Field.
A grand jury has sought documents from the national track and field governing body concerning its $400 million, 23-year corporate sponsorship with Nike, according to a story published Tuesday by Runner’s World magazine.
The magazine also reported that the grand jury is looking at business dealings between the governing body and its Chief Executive Officer Max Siegel. Among the entities named in a grand jury subpoena is Matchbook Creative, an Indiana-based marketing agency that has occasionally worked with USATF.
The Nike sponsorship at the center of the investigation was mind-boggling in its size and scope. In April 2014, the governing body announced the new sponsorship deal would last through 2040. Though the exact sum has never been disclosed, the agreement is thought to be worth at least $400 million.
Nike’s annual payment to USA Track & Field went from about $10 million to $19 million.
The deal was negotiated by Bevilacqua Helfant Ventures, a New York City-based business management consulting firm. It too is reportedly named in the federal subpoena. The firm, which will reportedly make millions in commission over several years, is headed by Chris Bevilacqua and Adam Helfant -- both Nike alumni.
Lauren Fleshman, a distance running coach and former competitive runner, said there are too many unanswered questions and too much secrecy.
“It smelled funny from the beginning,” Fleshman said. “Who was benefitting from that deal? I want to know. I always found it most suspicious that no one wanted to talk about it.”