Does the FIFA Corruption Scandal Have Anything To Do With Nike?

Soccer fans across the globe were treating to a fresh round of scandals as several senior FIFA officials and executives of sports management companies were arrested on suspicion of receiving bribes totaling $100 million. The officials were accused of accepting bribes over the past 24 years. Scandals involving FIFA and bribery isn't something that is particularly new and of little investor concern but investors and traders are paying close attention to a headline making the wires. Bloomberg reported on Wednesday that the indictment of FIFA officials says an "unidentified sportswear company" had bribed soccer officials for a sponsorship deal. The publication continued and noted that this is "a deal which seems to mirror one obtained by Nike Inc NKE. The indictment refers to a U.S. based company that signed a partnership with the Brazilian federation in 1996 – the same year Nike announced a decade-long pact with the country. Nike isn't specifically named in the indictment and said the following to Bloomberg: "Nike believes in ethical and fair play in both business and sport and strongly opposes any form of manipulation or bribery. We have been cooperating, and will continue to cooperate, with the authorities." Shares of Nike dipped in to negative territory following the news report suggesting its name may be included in the corruption scandal. Shares were last seen trading at $102.59, down 0.80 percent on the day. Shares traded at an intra-day high of $103.92. The scandal comes just days ahead of FIFA's 65th Congress on May 28 and 29 in Zurich.