ADIDAS 3 WERE NOT SO SNEAKY
Exec, 2 others jailed in college hoops caper
An Adidas executive will sport prison stripes for nine months for bribing the father of a prized college basketball prospect to have his son attend the University of Louisville.
Two other basketball insiders got six months for their roles in the scheme.
The trial of the three men — Jim Gatto, Merl Code and Christian Dawkins — shined a spotlight on the seedy underbelly of the NCAA. Universities, apparel companies, sports agents and other hangers-on vie for college basketball players expected to generate millions in revenue for colleges and sponsorships once they turn pro.
Manhattan Federal Judge Lewis Kaplan said he wanted the sentences to be “a great big warning light to the basketball world.”
Gatto, the Adidas executive, was tasked with producing players for Adidas-sponsored colleges. The recruits would hopefully sign lucrative shoe deals once they joined the NBA. Gatto enlisted the help of Merl Code, who worked as an Adidas consultant. Dawkins, an aspiring sports agent, helped out in hopes of building a relationship with potential clients.
The trial centered on a $100,000 payment to the father of Brian (Tugs) Bowen to secure his commitment to Louisville. The scandal led to the firing of Louisville head coach Rick Pitino, and Bowen was deemed ineligible to play.
Kaplan recalled a memorable moment from the trial when Dawkins and Code were caught on a wiretap discussing how they needed to give Pitino “plausible deniability” about their efforts to recruit Bowen for Louisville.
“They were making sure Pitino’s tracks were covered, to the extent they could,” Kaplan said.
All three men told the court they regretted their actions. They had argued at trial that violations of NCAA rules were not violations of the law. A jury disagreed and found them guilty of wire fraud and conspiracy to commit wire fraud.
“The ‘everybody is doing it’ argument is not a get-out-of-jail-free card,” Kaplan said.
All three said they loved the game of basketball. Code, 45, and Dawkins offered light criticism of the NCAA. Code hoped to work on “things that need to be changed” in college hoops once he completes his prison sentence.
“A system I believe takes advantage of kids and families undoubtedly clouded my own judgment,” Dawkins, 26, said.
Gatto, 48, got a heftier sentence because he also defrauded North Carolina State and Kansas through other secret payouts. Prosecutors argued that the universities themselves were victims because they awarded scholarship money to players who were unqualified to play.
“The universities didn’t want this. They didn’t invite this,” Assistant U.S. Attorney Ted Diskant said.
Kaplan allowed the men to remain on bail while pursuing appeals, acknowledging the case may be the first of its kind in the country.
The judge said the real victim is Tugs Bowen. Bowen’s dad wept on the stand testifying about the payments that ruined his son’s career. Tugs Bowen is playing basketball in Australia.
“He broke down in tears on the stand with the realization or acknowledgment that he wrecked his son’s life,” Kaplan said.
“These three defendants, they participated in wrecking Bowen’s life.”