Sports Torts: As Time Goes On, Shady Dealings with NCAA Basketball
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CHICAGOLAWBULLETIN.COM TUESDAY, NOVEMBER 27, 2018 ® Volume 164, No. 231 Serving Chicago’s legal community for 164 years As time goes on, shady dealings with NCAA basketball schools grow year ago, this column North Carolina State. Adidas Dawkins’ bank account as a re - discussed federal employee James Gatto, former imbursement for money Dawkins criminal complaints Adidas consultant Merl Code SPORTS TORTS had already dispersed and more involving NCAA bas - and former runner for NBA money was transferred for a fu - ketball programs. agent Andy Miller, Christian ture disbursement. Id. The in - AThe complaints detailed allega - Dawkins, were found guilty of dictment further states, “[T]he tions of wire fraud, bribery, trav - paying money from Adidas to the defendants, and one or more el act and conspiracy offenses families of recruits to ensure coaches at the University of allegedly committed by Adidas they signed with Adidas-spon - BY WILLIAM Louisville, made, intended to executives. “Lowly gym shoe sored schools, and then with the T. G IBBS make or caused or intended to may be undoing of college sneaker company and certain fi - cause others to make false certi - hoops,” Chicago Daily Law Bul - nancial planners and agents once fications to the University of letin (Nov. 28, 2017). they turned pro. William T. Gibbs is a trial attorney at Louisville and the NCAA about Acting Manhattan U.S. Attor - Each is now a convicted felon Corboy & Demetrio P.C., representing the existence of the payments ney Joon H. Kim stated at the after a three-week criminal trial victims of negligence. He currently and the known violations of time, “The picture of college bas - in federal court in New York. represents several former NFL and NHL NCAA rules.” Id. at ¶ 29. ketball painted by the charges is Gatto, Code and Dawkins are to athletes and their families. He can be After these allegations sur - not a pretty one — coaches at be sentenced by U.S. District reached at [email protected]. faced, the University of Louisville some of the nation’s top pro - Judge Lewis A. Kaplan on fired head coach Rick Pitino, who grams taking cash bribes, man - March 5. three of the defendants admitted brought his own suit against Adi - agers and advisers circling blue The testimony at trial was their role in making payments to das claiming he had no knowl - chip prospects like coyotes and troubling for NCAA basketball. Bowen and other players (or edge of the defendant’s illegal employees of a global sportswear In particular, testimony focused players’ families), but their attor - conduct or violations of NCAA company funneling cash to fami - on the defendants conspiring to neys argued that these payments rules. That suit was later dis - lies of high school recruits.” pay $100,000 from Adidas to were not in violation of the law. missed pursuant to a mandatory Indeed, the picture of college Brian “Tugs” Bowen’s father to In contrast, the deputy U.S. at - arbitration clause in Pitino’s en - basketball painted by the prose - influence him to sign with torney for the Southern District dorsement deal with Adidas. cution of those charges has not Louisville in the summer of 2017. of New York argued that, “The Other NCAA member institu - been a pretty one. The underbel - Last week, Brian Bowen II defendants not only deceived tions are also under fire. Gatto ly of college basketball recruiting sued Adidas and several associ - universities into issuing scholar - was also charged with defraud - and the dark, underground ates caught up in the college bas - ships under false pretenses, they ing or conspiring to defraud money and influence exerted by ketball corruption scandal. The deprived the universities of their Kansas University. T.J. Gassnola, corporate shoe companies has lawsuit details claims that economic rights and tarnished another Adidas representative been exposed. that allegedly paid more than As one of the defendants pre - $90,000 to two prospective sciently stated, in the presence of The testimony at trial was troubling for NCAA Kansas players, testified that an FBI undercover agent, “You head coach, Bill Self, and Kansas guys are being introduced to … basketball. In particular, testimony focused on assistant coach, Kurtis how stuff happens with kids and the defendants conspiring to pay $100,000 from Townsend, did not know about getting into particular schools … any of these payments. this is kind of one of those in - Adidas to Brian “Tugs” Bowen’s father … However, Code’s lawyer re - stances where we needed to step ported a wiretapped phone call up and help one of our flagship Bowen and other players target - an ideal which makes college between Code and Townsend school in [Louisville], you know, ed by Adidas’ “criminal racketing sports a beloved tradition.” that involved a prospective play - secure a five-star caliber kid … enterprise” were denied the According to the federal in - er’s relative asking for money to and that’s an Adidas-sponsored chance to grow their talents in dictment, Gatto approved trans - which Townsend said to Code, school.” The introduction has college on the way to becoming fers of money from Adidas to an “So, I’ve got to just try to work been enlightening and justice is professionals. AAU basketball program that and figure out a way. Because if beginning to be levied against It seeks monetary damages was managed and run by Code. that’s what it takes to get him for those participating in the and an injunction to prevent Adi - United States v. Gatto, et al ., 2017 10 months, we’re going to have to scheme. das “from engaging in sponsor - WL 7790584, ¶ 26 (S.D.N.Y.). The do it some way.” On Oct. 24, a jury convicted ship of NCAA Division I men’s funds were listed as travel ex - Additionally, there was evi - three defendants accused of pay- basketball programs.” Bowen II v. penses for the AAU team to hide dence at trial that Gassnola for-play schemes to influence Adidias America Inc.. et al. , No. from Adidas officials where the texted head coach Bill Self to high-profile basketball recruits 3:18-3118, D. South Carolina. money was actually going. Id. thank him for helping to ensure to attend Kansas, Louisville and During the criminal trial, all Code then moved the money to the 12-year contract extension Copyright © 2018 Law Bulletin Media. All rights reserved. Reprinted with permission from Law Bulletin Media. was successful between Kansas former Wolfpack star Dennis Lamont Evans and USC’s Tony themselves fired from the univer - and Adidas. Self responded that Smith Jr., after Gatto approved Bland — are scheduled for trial sity. But there are also potential he was happy with the deal and the payment. in April. They are accused of ac - penalties for the programs, such that they “Just got to get a couple At this point, only these three cepting bribes from Code and as bar from NCAA Division I real guys.” Gatto, the sneaker schools have been implicated and Dawkins, who are also defen - tournament play or forfeiture of company’s director of global only these three men have been dants in that case. wins or championships. sports marketing for basketball, convicted. But additional trials Clearly, the door is wide open NCAA Division I teams, all also was accused of conspiring implicating others are scheduled for potential NCAA sanctions in 351 of them, each offering 13 with Gassnola to pay $90,000 to for early next year. connection to these activities. scholarships, provide the oppor - former Kansas prospect Billy Former Auburn assistant The NCAA specifically prohibits tunity each year to 4,563 stu - Preston’s mother and $20,000 to Chuck Person and former NBA any payment from a “representa - dent athletes to participate in current Jayhawks player Silvio referee Rashan Michel are tive of an institution’s athletics the highest level of amateur De Sousa’s guardian. As a result, scheduled for trial in February. interests.” 2018-19 NCAA Divi - basketball. star recruit, De Sousa has been Person is accused of accepting sion I Manual Article 12, Section Certainly, all are not tainted. held out of competition this sea - $91,500 in bribes from a federal 1.2.1.3.1. But, the world has now seen how son pending a review of his eligi - cooperating witness to influence Players’ acceptance of these the sausage is made at some of bility. Auburn players to sign with cer - types of payments can result in the top basketball programs. The Gassnola also testified during tain financial advisers and bars from competition, exclusion sundry details of Adidas’ funnel - the trial that he provided former agents. from NCAA playoffs or exclusion ing of cash in the underground North Carolina State assistant Three former assistant coach - from NCAA sanctioned teams. world of college basketball re - Orlando Early with $40,000 to es — Arizona’s Emanuel “Book” Coaches that have facilitated cruiting is not a pretty picture secure the commitment of Richardson, Oklahoma State’s these types of payments can be at all. Copyright © 2018 Law Bulletin Media. All rights reserved. Reprinted with permission from Law Bulletin Media..