Ex-Nike chief probed over soccer club 'tax scam'
The former head of Nike France, Jean-Claude Petit, has been placed under formal investigation by French magistrates investigating possible tax fraud at soccer club Paris-Saint-Germain, a judicial official said tonight.
Petit was facing charges of forgery and the use of forgeries, as well as using bonuses to players to avoid certain government-levied fees, the official said.
Being placed investigation is one step short of a formal charge.
Nike France, PSG’s official sponsor since 1989, has been accused of having made bogus royalty payments to players, enabling the club to dodge social charges on part of its wage bill between 1998 and 2003.
The sportswear maker then allegedly recovered the money from PSG in the form of fines for supposed breaches of their sponsorship contract.
Several former PSG chairmen – Michel Denisot, Charles Bietry, Laurent Perpere and Francis Graille – have also been interviewed in relation to the suspected scam, and were warned that they also could face charges.
