A criminal fraud trial involving the football club of Paris Saint-Germain and Nike France started in a Paris court last week. It is alleged that the team made some player transfers between 2000 and 2005 and structured its sponsorship deal with Nike for the purpose of withholding social charges that should have been paid to France. There are 12 defendants in the case, in addition to the club and Nike France, and these two could face penalties of €225,000. During the original investigation, the French court has already ruled that the Nike group and Nike Europe should not be charged. Nike officials are trying to prove now that their contractual relationship with the PSG club was not fraudulent. The sticking point seems to be a series of letters sent by the club to its players, encouraging them to sign endorsement deals with Nike to complement their normal wages and promising payments to them if these contracts are terminated.

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