NY Times: Kenyan officials being investigated for taking $500,000 in Nike money

Article confirms everything we imagine was happening. That there was corruption. At the same time, it looks like Nike took steps to pay bribes within a legal framework. I would be shocked if Nike was successfully prosecuted for paying bribes.

The surprising thing is the assertion of how much importance Nike places on its relationship with Kenyan distance running. I can't believe its really that important to Nike in this era where they have $30 billion/year revenue.

Sounds likely to be an FCPA violation, the kind that usually gets investigated by the SEC and DOJ when there's a big story.

ryan foreman wrote:

Article confirms everything we imagine was happening. That there was corruption. At the same time, it looks like Nike took steps to pay bribes within a legal framework. I would be shocked if Nike was successfully prosecuted for paying bribes.

The surprising thing is the assertion of how much importance Nike places on its relationship with Kenyan distance running. I can't believe its really that important to Nike in this era where they have $30 billion/year revenue.

The reality is this is process of the Nike business model,in Kenya and many other countries.

most interesting part of the story to me:

(He said corruption in the athletics federation was so ingrained and so brazen that officials routinely extorted money from athletes who failed drug tests. He also said the organization’s chairman, Isaiah Kiplagat, had asked Nike to wire the bonus directly to his personal account, a request that Nike refused.)

ryan foreman wrote:[/b

I can't believe its really that important to Nike in this era where they have $30 billion/year revenue.

I spit up my beer when I read this line. You have no idea what the culture at Nike is like. They will cheat and steal for an additional .0001% of the market share at a local running shop. NIKE CHEATS. It is a source of pride to see what they can get away with in all aspects of what they do. They also know that they will get caught every so often but they laugh at that as well. It is all part of the game.

This is why I laugh when some innocent imbecile believes that Alberto is not doping. He was hired for exactly that reason. They truly believe that if your not cheating then you are not trying hard enough. And if you don't get caught then you are not cheating.

Swish wrote:

Sounds likely to be an FCPA violation, the kind that usually gets investigated by the SEC and DOJ when there's a big story.

The article says that the Foreign Corrupt Practices Act likely does not apply because AK is not a governmental agency.

As "Swoosh" pointed out (the book), Nike's origination story is not one free of questionable practices. It strikes me as a culture in which losing a deal worth a penny is frowned upon, let alone losing AK.

Not surprising that it is helping in efforts to fleece Oregonians to pay for the Worlds in Eugene.

Well, I agree that there is some truth to that. But the article suggests there was deep concern about Nike losing Kenya to a China company. Presumably at the highest levels of Nike. Just saying, I would think there are hundreds of things Nike execs are more concerned about than Kenyan distance running.

it gets better wrote:

most interesting part of the story to me:

(He said corruption in the athletics federation was so ingrained and so brazen that officials routinely extorted money from athletes who failed drug tests. He also said the organization’s chairman, Isaiah Kiplagat, had asked Nike to wire the bonus directly to his personal account, a request that Nike refused.)

"Routinely extorted"!

I wonder if there are records or samples from these failed drug test.

Interesting article. Much of this has been previously reported

http://www.letsrun.com/news/2015/11/the-sunday-times-reports-that-nikeathletics-kenya-briberytheft-allegations-are-now-part-of-a-criminal-probe/

but when the NYTimes publishes it it gives it a much bigger footprint. Plus the Times did a good job of putting it all together in one piece.

I had not previously heard he news where Kenyan investigators say Nike is not cooperating. Nike's spokesperson claims they are.

The most innocent read is here is Nike gave money to the Kenyan officials that they knew could be siphoned away and didn't care. Well that means Kenyan athletes got screwed out of $500,000. Kenyan investigators tell the NYTimes Nike is not cooperating. Now some may say "maybe that's the way business is done in Kenya" but imagine if Nike just ensured that it wasn't. But paying a suspect payment might be a cheaper way to get a contract rather than bidding it out.

As for the Foreign Corrupt Practices Act it only applies to government officials but in this thread

http://www.letsrun.com/forum/flat_read.php?thread=6940051

people said state laws can be applied and obviously the FIFA people are getting indicted and they aren't government officials. But as the article notes why do we let the US people get a free pass?

Imagine how much different the sport would be if Nike led the fight against doping and corruption. Instead they show no leadership and give the impression the ends justify the means.

They do this with doping, with how Nike employees conduct themselves at meets, with this Kenyan corruption thing, and even with how they reacted when Lance was first sanctioned by USADA. There appears to be very little concern for the greater good or fair sport.

It's sad because they have a tremendous platform and brand and could make all sports better if they wanted.

That's what I would guess that Nike gave money to Athletics Kenya and the officials being investigated just took the money for themselves.

I'm sure for Nike the $500 000 'investment' still pays off. Market and brand exposure = winning.

that's not how Nike plays

Agree, rojo. Though that's all mostly pie in the sky stuff.

Always view Nike and their position through the lens of child labor and sweatshops. I don't them leading the way away from doping.

What butt hurt deluded shoe company do you work for.

This is deluded.

Why wouldn't it be? If Nike sees profits for its shareholders by doing business in Kenya, and lawyers show them a way to do it legally, they arguably have an obligation to its shareholders to play this game. This is more or less how business is done in a lot of countries. The other apparel companies do it too in so much as they can. The only difference is that Nike is like the Yankees of apparel companies. They can buy the best legal advice and outbid others.

dsrunner wrote:

that's not how Nike plays

This is starting to bum me out wrote:

it gets better wrote:

most interesting part of the story to me:

(He said corruption in the athletics federation was so ingrained and so brazen that officials routinely extorted money from athletes who failed drug tests. He also said the organization’s chairman, Isaiah Kiplagat, had asked Nike to wire the bonus directly to his personal account, a request that Nike refused.)

"Routinely extorted"!

I wonder if there are records or samples from these failed drug test.

What's funny here is that most in this thread, Wejo included! Have sunk their teeth into the Bad Nike part of the story and missed the REAL STORY! Hello, Kenyan officials extorting drug failing Kenyan runners and hiding their doping positives!! Dined dong, bing bong! Don't let that fail to sink in!

As a runner and running fan that is much more interesting to me than what some company may or may not have done for branding interests.

500,000 is the same amount they allegedly gave the UCI for Armstrong

It's a nice round figure for Nike it seems!

I no longer buy Nike because they sponsor drug cheats.

It's disappointing that Sepp Coe, Paula and Mo aren't as concerned by this fact as I am.

Loving it wrote:

What's funny here is that most in this thread, Wejo included! Have sunk their teeth into the Bad Nike part of the story and missed the REAL STORY! Hello, Kenyan officials extorting drug failing Kenyan runners and hiding their doping positives!! Dined dong, bing bong! Don't let that fail to sink in!.

Why shouldn't AK make dopers pay? When there's a positive test, someone has to pay IAAF and WADA, and that's not cheap. Of course, if athletes object, they can move to Bahrain or Sweden or the US, but beware the vengeance of the athletics governing body.

A lot of Kenyans are frauds. Cheaters, thieves, scumbags. Makes the good ones look bad too. They should be banned from Rio for mass doping and top level corruption, and I'd hate to see that from a fan standpoint but it has to happen.